www.americanii.com email: aiii@wt.net

Kemah, Texas – August 12, 2004 American International Industries, Inc. (OTCBB: AMIN) today announced that its subsidiary Delta Seaboard Well Service, Inc. ("Delta") obtained a line of credit from Compass Bank in the amount of $2,000,000 in order to increase its working capital. Delta is in the business of oil and gas well services. The oil and gas industry is benefiting from record oil and gas prices, since last year the rig count has increased substantially and the extensive drilling activities provide great opportunities for Delta. Delta will use its increase in working capital to acquire additional land rigs and related equipment, which will potentially increase its present revenues of approximately $10,000,000.

AMIN signed a letter of intent to purchase Streamline Production Systems, Inc. ("Streamline") a privately held company based in Beaumont, Texas. Streamline is in the business of oilfield construction, drilling related services, preparation of drilling sites, pipeline installations, and manufacturing of production and process equipment. Streamline designs, engineers, fabricates, manufactures and reconditions oil and gas process equipment of all types and sizes in an ASME code facility. During the past twelve-month period, Streamline’s revenues were approximately $10,000,000 and Streamline is profitable. American expects to close the acquisition of Streamline during the fourth quarter of fiscal year 2004, subject to additional due diligence.

Robert W. Derrick, Jr., President of Delta stated "Streamline will be a good synergetic match to Delta’s business and the combined companies Delta and Streamline with annual revenues in excess of $20,000,000 will become an important factor in its industry. Due to high demand for their products and services, Delta and Streamline are currently experiencing a substantial back log of orders".