601 CIEN STREET, SUITE 235, KEMAH, TX 77565-3077

Tel: (281) 334-9479 Fax: (281) 334-9508 email:





Kemah, Texas – August 13, 2004 American International Industries, Inc. (OTCBB: AMIN) The Company filed its quarterly report for the period ended June 30, 2004, reporting strong revenue growth. Revenues for the three and six month periods ended June 30, 2004 were $3,527,298 and $6,388,382 compared to revenues of $1,535,244 and $1,874,618 during the same period in the prior year, an increase of approximately 130% and 240%, respectively. The Company’s operating subsidiaries, Delta Seaboard reported revenues for the three and six-month periods of $2,267,138 and $4,460,877 and Northeastern Plastics reported revenues of $1,320,951 and $2,069,047. The Company incurred a consolidated net loss of $491,401 for the three-month period and $773,194 for the six-month period ended June 30, 2004. The loss is mainly attributable to non-cash compensation related to services provided to the Company by consultants and employees. The Company’s current assets as of June 30, 2004 were $16,765,748 and current liabilities of $2,749,309, a decrease of 30% compared to December 31, 2003.

The Company also reports that during the quarter ended June 30, 2004, Surgicare (SRG) proposed a transaction to the Company whereby SRG will redeem the $4,500,000 Series AA Preferred Shares owned by the Company. In consideration for such redemption SRG shall issue to the Company 8,750,000 shares of SRG common stock, and as additional consideration (since the market value of the 8,750,000 shares of SRG common stock is approximately $3,000,000), SRG would sell to the Company the five parcels of real estate (all originally appraised at $6,000,000). Further, the Company agreed to assume a first lien balance outstanding secured by the properties in the amount of approximately $1,100,000 and further, the Company would pay SRG approximately $300,000 in cash at time of closing. The SRG proposal to issue to the Company 8,750,000 shares of SRG common stock was subject to the listing of such SRG shares by the AMEX. The agreement between the parties further stated that in the event the 8,750,000 shares could not be listed on the AMEX, then the $4,500,000 evidenced by the Preferred Shares owned by the Company will continue to be paid based on the previous scheduled payments of $1,500,000 in each year 2004, 2005, 2006. The real estate part of the transaction closed on July 29, 2004.

The Company proceeded to sell the properties to an unaffiliated third party which sale included the assumption by third party of the $1,100,000 first lien and the $300,000 cash payment. As additional consideration for the sale of the properties to third party, the purchaser executed a $5,000,000 secured Promissory Note to the Company, and the Note is further secured by second liens on the real estate. The Note is payable in five years and bears interest of three percent per annum. Using conservative accounting principles, the Company determined that it will record a reserve of $1,000,000 in connection with said Note. The sale of the real estate to third party purchaser will add substantially to the Company’s earnings per share.

American International Industries, Inc. is a holding company. The Company has holdings in Industry, Finance, Real Estate in Houston Texas and surrounding areas, and Oil & Gas. The vision of the Company is to develop holdings in various industries through acquisition of existing companies, applying the financial resources and management expertise to foster the growth and profitability of the acquired businesses. The holding company serves as a financial and professional partner to the management of the subsidiaries. The role of the holding company is to improve each subsidiary’s access to capital, achieve economies of scale by consolidating administrative functions, and utilize the financial and management expertise of corporate personnel across all units. The Company is continuing to work with management of the subsidiary companies to improve revenues, operations and profitability.

Private Securities Litigation Reform Act Safe Harbor Statement:

The matters discussed in this release contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, that involve risks and uncertainties. All statements other than statements of historical information provided herein may be deemed to be forward-looking statements. Without limiting the foregoing, the words "believes", "anticipates", "plans", "expects" and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those that we may anticipate in each of our segments reflected by our subsidiaries' operations include without limitations, continued value of our real estate portfolio, the strength of the real estate market in Houston, Texas as a whole, continued acceptance of the Company's products and services, increased levels of competition, new products and technology changes, the dependence upon financing, third party suppliers and intellectual property rights, the rules of regulatory authorities and risks associated with any potential acquisitions. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis, judgment, belief or expectation only as of the date hereof.

Investor Relations: Rebekah Ruthstrom Tel: 281-334-9479 email: