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

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

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






Houston / Kemah, Texas –August 28, 2008 Hammonds Industries, Inc. (OTCBB: HMDI) On August 21, 2008, Hammonds presented its response to the U.S. Army solicitation to supply the Army’s SATS (Standard Aircraft Towing System). The Army solicitation invited providers to offer a tractor, which can move and position all rotor craft and fixed wing aircraft and a variety of ground support equipment. Hammonds offered its ODV® G-120 equipped to meet the demanding specifications called for by the SATS solicitation. The ODV G-120 is rated to tow up to 120,000 pounds and is transportable in all U.S Air Force and Army airlift aircraft, making it appropriate for the full range of military missions. The Army SATS solicitation is for up to 900 tractors to be delivered over the next 5 years.

Based on the Hammonds line of commercial tractors, the G-120 offers performance and safety not available with conventional tractors. The unique design of the ODV offers unparalleled safety since the operator has an unobstructed view in the direction of travel. The patented radial hitch and true zero turning radius enable the tractor to move in any radial direction from a given point, making it possible to position large, heavy objects with great precision in confined areas with limited maneuvering room. Hammonds has multiple US and foreign patents on the ODV covering forklifts, high capacity pallet jacks, people movers, security vehicles, highway mowing machines, and terminal freight tractors. The U.S. Army and Air Force currently use ODV’s and have been very positive in their reviews of performance and durability.

"The ODV provides unequaled performance as an aircraft tow tractor, but aviation represents only one of many opportunities for the ODV. This unique vehicle sets new standards as a forklift, industrial material handling platform, freight trailer mule, highway mower, and snow management tractor," said Carl Hammonds, President. "We believe that if we are successful in our bid, the Army SATS will provide another key element in our plan to develop the potential of this exciting concept."

About Hammonds Industries

Hammonds Industries, the premier provider of military aviation fuel additive systems, is revolutionizing material handling and airline towing systems with its omni directional vehicle which easily tows heavy loads in any direction. Hammonds Industries has designed and manufactured specialized products, primarily for government, aviation and military customers for over 25 years. Founded in 1982, the company has a long-standing reputation for innovation. Hammonds’ products include patented systems for blending and injecting fuel additives, systems for blending water treatment chemicals, as well as fuel handling and bio-diesel blending products. ODV® is a registered trademark of Hammonds Technical Services, Inc.

To view Hammonds’s products and for additional information about the company, please visit http://www.hammondscos.com, http://www.hammondsodv.com, and http://www.waterchlorination.com.

Hammonds Industries, Inc. is a subsidiary of American International Industries, Inc. (NasdaqCM:AMIN).

For more information about HMDI, contact Rebekah Ruthstrom at 281-334-9479 or e-mail amin@americanii.com.

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.