www.americanii.com email: amin@americanii.com

Houston / Kemah, Texas – August 16, 2010 American International Industries, Inc. (OTCBB: AMIN) (the "Company" or "American") reported net income of $1,513,018, or $0.15 per share, for the three months ended June 30, 2010, compared to a net loss of $852,248, or $0.10 per share, for the same period in 2009. We had net income of $408,609, or $0.04 per share, for the six months ended June 30, 2010, compared to a net loss of $1,045,387, or $0.12 per share, for the same period in 2009. We had net income from continuing operations of $1,513,018, or $0.15 per share, for the three months ended June 30, 2010, compared to a net loss of $502,248, or $0.06 per share, for the same period in 2009. We had net income from continuing operations of $408,609, or $0.04 per share, for the six months ended June 30, 2010, compared to a net loss of $695,387, or $0.08 per share, for the same period in 2009. Our net loss for the three and six months ended June 30, 2009 included a net loss from discontinued operations of $350,000, or $0.04 per share.

For the three months ended June 30, 2010, revenues were $6,424,554, compared to $6,232,115 for the three months ended June 30, 2009, representing an increase of $192,439, or 3.1%. Revenues were $11,421,067 for the six months ended June 30, 2010, compared to $12,427,129 for the six months ended June 30, 2008, representing a decrease of $1,006,062, or 8.1%.

During the three months ended June 30, 2010, Delta Seaboard International, Inc. ("Delta"), in which we hold a 48.1% shareholder interest, had revenues of $2,045,082, compared to $2,331,214 during the three-month period ended June 30, 2009, representing a decrease of $286,132, or 12.3%. During the six months ended June 30, 2010, Delta had revenues of $4,283,740, compared to $4,795,125 during the six-month period ended June 30, 2009, representing a decrease of $511,385, or 10.7%. The decrease in revenues is mainly due to a decrease in rig service revenues for the three and six months ended June 30, 2010, compared to the same periods in the prior year, of $815,544 and $1,016,049, respectively. Rig service revenues have decreased due to major maintenance on two rigs during 2010. One of the two rigs is back in service and maintenance on the second rig is near completion. The decrease in rig service revenues was partially offset by an increase in pipe sales for the three and six months ended June 30, 2010, compared to the same period in the prior year, of $529,412 and $504,664, respectively. Pipe sales have increased due to increased drilling activity in the oil and gas industry.

Revenues for Shumate Energy Technologies ("SET"), our wholly-owned subsidiary, for the three months ended June 30, 2010 were $1,367,052, compared to $1,907,496 for the same period in 2009, representing a decrease of $540,444, or 28.3%. For the six months ended June 30, 2010, SET’s revenues were $2,573,408, compared to $3,994,317 for the six months ended June 30, 2009, representing a decrease of $1,420,909, or 35.6%. SET revenues have decreased due to a decline in drilling activity.

Revenues for Northeastern Plastics, Inc. ("NPI"), our wholly-owned subsidiary, during the three months ended June 30, 2010 were $2,713,513, compared to $1,993,405 for the three months ended June 30, 2009, representing an increase of $720,108, or 36.1%. NPI's revenues were $4,202,070 for the six months ended June 30, 2010, compared to $3,637,687 for the six months ended June 30, 2009, representing an increase of $564,383, or 15.5%. NPI's revenues increased due to the addition of several new accounts and increased orders for existing accounts.

In 2010, the Company formed a new subsidiary, Downhole Completion Products, Inc. ("DCP"). The results of DCP for the three and six months ended June 30, 2010 are included in our results of operations. For the three and six months ended June 30, 2010, DCP’s revenues were $298,907 and $361,849, respectively.

Cost of sales for the three months ended June 30, 2010 was $4,616,897, compared to $4,004,522 for the three months ended June 30, 2009, representing an increase of $612,375, or 15.3%. Cost of sales for the six months ended June 30, 2010 was $8,177,068, compared to $7,998,524 for the six months ended June 30, 2009, representing an increase of $178,544, or 2.2%. Margins for the three months ended June 30, 2010 were 28%, compared to 35% for the three months ended June 30, 2009. Margins for the six months ended June 30, 2010 were 28%, compared to 36% for the six months ended June 30, 2009. The primary reason for the decline in margins is due to the change in the mix of the revenues during the period. NPI’s margins are lower than those of our oil and gas related businesses. NPI’s revenues during the three and six months ended June 30, 2010 were 42% and 37%, respectively, of total revenues compared to 32% and 29% for the three and six months ended June 30, 2009, respectively. Additionally, Delta experienced a decline in margins during the three months ended March 31, 2010 compared to the same period in the prior year due to the sale of high-priced pipe from inventory. Margins on pipe sales were 2% for the three months ended March 31, 2010, compared to 25% during the same period in the prior year due to a decline in drilling activity. Drilling activity has been increasing since the first quarter and we look forward to experiencing higher margins on pipe sales for the remainder of the year.

Selling, general and administrative expense for the three months ended June 30, 2010 was $2,451,615, compared to $2,746,616 for the three months ended June 30, 2009, representing a decrease of $295,001, or 10.7%. Selling, general and administrative expense for the six months ended June 30, 2010 was $5,875,994, compared to $5,399,702 for the six months ended June 30, 2009, representing an increase of $476,292, or 8.8%. The increase in selling, general and administrative expenses is due primarily to non-cash stock-based compensation of $1,037,610, of which $847,750 was to the executive officers of Delta in consideration for extending their employment agreements. Stock-based compensation for the six months ended June 30, 2010 was $1,037,610, compared to $41,250 for the six months ended June 30, 2009, representing an increase of $996,360. This increase was partially offset by lower selling, general and administrative expense associated with the decline in rig service revenues at Delta.

Other income was $2,126,329 for the three months ended June 30, 2010, compared to other expense of $113,564 for the three months ended June 30, 2009, representing an improvement of $2,239,893 from the prior period. Other income was $2,682,835 for the six months ended June 30, 2010, compared to $8,286 for the six months ended June 30, 2009, representing an improvement of $2,674,549 from the prior period. Other income for the three and six months ended June 30, 2010 includes compensation for consulting services of $1,370,000. The Company received 1,000,000 shares of ADB International Group, Inc. common stock valued at $1.37 per share for these consulting services. Other income for the three and six months ended June 30, 2010 included gains on the sale of assets of $781,204. During the three months ended June 30, 2010, American sold an 8 acre tract of land valued at $175,480 for $340,445 and recognized a $164,965 gain for this transaction. During the three months ended June 30, 2010, American sold its 51% ownership in Delta's facilities valued at $422,737 and the purchaser assumed a $943,500 note payable on the property. American recognized a $520,763 gain for this transaction. Additionally, other income for the six months ended June 30, 2010 included the receipt of $700,000 by Delta as a cash settlement for its claims in an insurance lawsuit.

For more detailed information, please refer to our June 30, 2010 Form 10-Q filing with the SEC, which was filed on August 16, 2010.