The Company reported a net loss of $687,366 for the three month period ended June 30, 2007 compared to $168,314 for the same period in 2006. For the six months ended June 30, 2007, the Company reported a net loss of $1,980,266 compared to a net loss of $851,977 for the six months ended June 30, 2006. For the six months ended June 30, 2007, the Company’s net loss includes non-cash items, including depreciation and amortization of $576,347 and stock-based compensation of $412,460, of which $208,265 is non-recurring. Additional non-recurring expenses for this same period were $238,000 for legal and professional fees associated with lawsuit settlements, expenses related to investment funding of transactions and commissions, and real estate consulting fees. Excluding these items, the Company’s net loss for the six months ended June 30, 2007 was $753,459.

Of the $1,980,266 net loss for the six months ended June 30, 2007, a loss of $1,439,330 is attributable to Hammonds Industries, Inc. (OTCBB: HMDI), our 40.6% owned subsidiary. Hammonds’ losses are attributable to the development and marketing of new products. Hammonds’ net loss includes non-cash items, including depreciation and amortization of $412,453 and a non-recurring expense for stock-based compensation of $40,000. Additional non-recurring expenses for this same period were $45,000 for legal and professional fees associated with lawsuit settlements and other one-time events. Excluding these items, Hammonds’ net loss for the six months ended June 30, 2007 was $941,877. Two of Hammonds’ companies, Hammonds Fuel Additives and Hammonds Water Treatment, are profitable. To meet revenue demand for Hammonds Technical Services’ products, the Company has obtained and continues to invest in machinery and equipment to significantly increase production capability and efficiency. The Company recently purchased a CNC controlled plasma steel cutting system, a state-of-the-art painting facility, multiple material handling cranes throughout the production area, an automated production saw and a new mill for the machine shop. In addition to tools, Hammonds installed new compressed air systems, new production flow testing stands, hydrostatic test stations, and expanded plant lighting and power distribution to support additional welding and assembly stations. In addition, Hammonds is implementing manufacturing and cost saving procedures in order to generate increased revenues with greater cost efficiencies.

Other income was $288,916 for the three month period ended June 30, 2007, compared to other expenses of $69,500 for the same period in the prior year. Other income was $488,875 for the six months ended June 30, 2007, compared to other expenses of $195,530 for the six months ended June 30, 2006. For the three and six months ended June 30, 2007, interest and dividend income increased by $233,162 and $333,613, respectively, compared to the same periods in 2006, primarily due to a significant increase in investment in certificates of deposit and interest on notes receivable. Delta recognized other income for a Texas Emissions Reduction Plan (TERP) grant from the Texas Commission on Environmental Quality in the amount of $347,160. TERP is a comprehensive set of incentive programs aimed at improving air quality in Texas. Through this grant, Delta’s rig engines are being replaced with engines certified to emit 25% less nitrogen oxide (NOx) than required under the current federal standard for the horsepower of the engines. The total grant awarded to Delta is $1,157,273 and the remainder of this amount will be recognized as the engines are replaced.

Our consolidated liquidity was $9,413,630 at June 30, 2007, compared to $10,139,058 at December 31, 2006. Total assets increased by $2,448,531, or by 7%, to $39,045,462 at June 30, 2007, compared to $36,596,931 at December 31, 2006. At June 30, 2007, consolidated working capital was $20,179,073, compared to working capital of $17,625,203 at December 31, 2006, representing an increase of $2,553,870, or 14%.

For more detailed information, please refer to our June 30, 2007 Form 10-Q filing with the SEC on August 13, 2007.

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.

Investor Relations: Rebekah Ruthstrom Tel: 281-334-9479 email: amin@americanii.com