HAMMONDS INDUSTRIES, INC.

(OTCBB: "HMDI")

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

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

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

FOR IMMEDIATE RELEASE

HAMMONDS INDUSTRIES, INC. ANNOUNCES

NEW PATENT APPLICATION FOR ON-BOARD INJECTOR

Houston / Kemah, Texas –October 15, 2008 Carl Hammonds, President of Hammonds Industries, Inc. (OTC BB: HMDI), today announced the filing for domestic and international patent protection for his design of an "On-Board Injector". Mr. Hammonds will assign exclusive rights to the new invention to Hammonds Industries, Inc.

Hammonds’ innovative new On-Board Injector technology enables operators of diesel engines to simultaneously inject selected fuel additives while filling their fuel tank, allowing vehicles to convert fuel from any available diesel source to a custom blend. Studies have demonstrated 10% to 15% improvement in fuel efficiency with the use of additives. Prior to Hammonds’ introduction of its unique On-Board Injector, there has not been an economical system that could consistently dispense additives automatically, making individual on-board fuel treatment costly and impractical. Additives require care in handling, and if applied manually, can be hazardous and are subject to misuse and theft.

With no action required by the operator, the Hammonds On-Board Injector consistently dispenses the additive, precisely proportionate to the flow of fuel, from a locked reservoir as fuel is being pumped into the tank. The system requires no pumps, electronics, meters, or external power from the vehicle and is simple to install on existing fuel tanks. Hammonds’ On-Board Injector systems come with all necessary fittings and hardware with a base system selling for about $1,000.

"This is a very exciting technology, ideally positioned to address immediate needs in today’s fuel markets. Use of additives has been shown to increase fuel efficiency, lower emissions, reduce consumption of lubricants, and lower overall maintenance costs. Our system provides quick pay-back for long-haul truckers, railroads, drilling rigs, boats and other applications where high quantities of diesel are consumed. The economics are very compelling and provide Hammonds with an immediate opportunity," said Mr. Hammonds.

About Hammonds Industries

"Innovation, Pure and Simple"™ is the philosophy behind Hammonds Industries, Inc., an established leader and innovator in providing new technology driven by specific opportunities in several diverse industries. Hammonds, 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. Mr. Hammonds has assigned to the Company exclusive rights to 26 U.S and foreign patents, including systems for blending and injecting fuel additives. The Company has been sole source supplier to the U.S. military for 20 years for fuel additive systems used worldwide. Also, Mr. Hammonds has assigned to the Company exclusive rights to patents on systems for blending water treatment chemicals, fuel handling and bio-diesel blending products. In addition, the Company has developed the unique Omni Directional Vehicle (ODV®) which has gained very favorable response and recent orders from major buyers including the Boeing Company and the U.S. Army. ODV® is a registered trademark of Hammonds Technical Services, Inc.

Hammonds has earned an excellent reputation and established "Industry Standard" brand distinction in several business segments including:

Fluid Powered Injection Systems

Fuel treatment, blending and handling technologies

Water and waste treatment technologies

Industrial utility vehicles

To view Hammonds’ 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.