Houston, Texas – November 8, 2007 -- Hammonds Industries, Inc. (OTC Bulletin Board: HMDI), the leading provider of military aviation fuel additive systems and a manufacturer of revolutionary omni-directional vehicles (ODVs) for material handling and aircraft towing, announced today that revenue for the third quarter ended September 30, 2007 increased 102% to $3,083,286 from $1,527,863 in the comparable quarter last year.

Revenue for the first nine months of 2007 was $7,120,461, an increase of 52% from the first nine months of 2006. The increase was primarily attributed to higher demand for Hammonds’ water treatment products and increased sales in the Technical Services division, which produces the company’s transport mounted injection systems. In the third quarter of 2007, revenue for the Technical Services division was $1,962,312, an increase of 232% over the same quarter a year ago. Revenue for water treatment products in the third quarter of fiscal 2007 increased by 36% to $839,682 compared to $619,389 in the same period last year. The Company’s backlog on September 30, 2007 was $4,800,000.

Hammonds reported balance sheet improvements in the third quarter of 2007 compared to year-end results on December 31, 2006. From the end of fiscal 2006, the Company’s liquidity increased 274% over the first nine months of 2007 to $1,482,963 at the end of the third quarter of fiscal 2007. Assets for the third quarter of 2007 were $11,617,871, an increase of 12% since the end of fiscal 2006. For the first nine months of fiscal 2007, the Company saw a 98% increase in working capital from $1,754,559 at the end of fiscal 2006 to $3,478,730 at the end of the third quarter. Stockholders’ equity, which includes additional equity investments, increased 36% to $5,263,039 at the end of the third quarter from $1,404,682 on December 31, 2006.

Carl Hammonds, President and COO of Hammonds Industries, said, "Hammonds is an innovative company that is now growing at a speed unprecedented in its 27 year history. The investments in its infrastructure and machinery will serve as a platform to increase Hammonds’ manufacturing capability and continue growing. We recently installed new compressed air systems, new production flow testing stands, hydrostatic test stations, and expanded our plant’s lighting and power distribution to support additional welding and assembly. During the third quarter of 2007, Hammonds began delivery of 72 injectors to the U.S. Army as part of a contract to support the Army’s 800K Fuel System Supply Point fueling system. The order carries a total value of $2,150,000 and will be completed by the end of this year. We are also negotiating with national aircraft manufacturers to deploy the ODV to improve aircraft production."

Net loss for the third quarter of 2007 was $787,081, a decrease from the $925,489 net loss reported in the comparable quarter last year. The net loss was primarily due to costs incurred through the introduction of the ODV product line. For the nine month period ended September 30, 2007, the company’s net loss was $2,226,411, compared to a net loss of $1,558,354 for the same period last year. Net loss for the most recent nine months includes non-cash and one-time events totaling $1,604,024. Excluding the non-cash and non-recurring items, Hammonds’ net loss for the first nine months of 2007 was $622,387.

Hammonds Chief Financial Officer, Sherry Couturier stated, "Since the first reporting period in which Hammonds included all its subsidiaries, June 30, 2005, our strategy has been to enhance assets and stockholders’ equity to facilitate future revenue and profits. Since that date, we have increased our assets by 66% or $4,601,520 through capital investments. For the third quarter of 2007, stockholders’ equity was $5,263,039, a dramatic increase of 789% since June 30, 2005. Our strategy is proving successful as revenues begin to significantly increase for Hammonds."

For more detailed information, please refer to our September 30, 2007 Form 10-QSB filed with the SEC on November 7, 2007.

Hammonds Industries, the premier provider of military aviation fuel additive systems, is revolutionizing material handling and airline towing systems with its new ODV – the omni-directional vehicle that easily tows heavy loads in any direction. Hammonds Industries has designed and manufactured specialized products primarily for government, aviation and military customers for over 27 years. Founded in 1980, 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 products. As of October 2007, Hammonds is a majority-owned subsidiary of American International Industries, Inc. (NasdaqCM: AMIN), as a result of the issuance of 7,142,857 restricted shares of common stock for the conversion of a $1,000,000 promissory note. AMIN’s expertise in the capital markets was instrumental during Hammonds’ transition into a public company and securing equity capital. AMIN will continue to support Hammonds in its future growth.

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.