www.americanii.com - Email: amin@americanii.com

FOR IMMEDIATE RELEASE

Houston/Kemah, Texas – November 7, 2008 American International Industries, Inc. (NasdaqCM "AMIN") Mr. Daniel Dror, Chairman and CEO, announced today that the board of directors of American International Industries, Inc. has set a new record date for the special dividend of shares of common stock of its subsidiary, Hammond Industries, Inc. (OTCBB: "HMDI") to AMIN shareholders. Additionally, the Company has increased the special dividend from one to two shares of HMDI common stock for each share of AMIN common stock. AMIN shareholders of record as of the close of business on Wednesday, December 31, 2008, will be issued two shares of HMDI common stock (free-trading to non-affiliates) for each share of AMIN common stock owned and held on the record date. The shares of HMDI common stock will be issued on or about Wednesday, February 25, 2009. Based upon HMDI’s closing price of $0.30 per share on November 6, 2008, for each share of AMIN common stock held by our shareholders, they will receive $0.60 in value.

This special dividend of Hammonds’ shares to the Company’s shareholders is classified as a property dividend rather than a stock dividend. Mr. Dror stated that "this special dividend will not be dilutive to AMIN’s shareholders because no AMIN shares will be issued; therefore, on the record day, the value of AMIN’s shares will not be reduced by this dividend. The special dividend of HMDI shares to AMIN’s shareholders should benefit AMIN shareholders because they will be receiving a significant number of HMDI shares, which are subject to quotation on the NASDAQ bulletin board. Further, it is our belief that this dividend will improve the liquidity of HMDI’s common stock by increasing the number of HMDI shareholders."

The difference between the current market value and the book value of the additional dividend shares will result in a gain on disposition of approximately $1.9 million for the Company, in addition to the $2.9 million gain recognized during the three months ended June 30, 2008. At this time, the Company will continue to consolidate Hammonds although its ownership is less than 51%, because the Company appoints the members of Hammonds' board of directors; however, the board of directors is considering additional transactions which may result in no longer consolidating Hammonds in the future. The Company owns approximately 24 million shares, or 48%, of Hammonds Industries, Inc. issued and outstanding common stock. After the distribution of the special dividend of approximately 17.4 million shares, the Company’s ownership will be approximately 13% of the issued and outstanding common stock.

For additional information, please refer to our Form 8-K filed with the SEC on April 16, 2008.

"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:

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.

American International Industries, Inc. is a diversified holding company, with a business model similar to General Electric, Tyco International, and Berkshire Hathaway. The Company has holdings in Industry, Finance, and 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.