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

FOR IMMEDIATE RELEASE

Ms. Sherry Couturier, Chief Financial Officer of Hammonds Industries, Inc. (OTCBB: HMDI), a subsidiary of American International Industries, Inc. (NasdaqCM: AMIN), said that Hammonds reported revenues of $1,802,229, compared to $3,083,286 for the three months ended September 30, 2007, representing a decrease of $1,281,057, or 42%. Revenues for the nine months ended September 30, 2008 were $6,428,157, compared to $7,120,461 for the same period in 2007, representing a decrease of $692,304, or 10%. Hammonds Water Treatment revenues increased by $206,530, or 9%, and Hammonds Technical Services revenues decreased by $877,166, or 22%. The decrease was due to delays in certain materials required for specific job completion and shipment delays as a result of a week-long operations shutdown due to Hurricane Ike. The Company is pursuing claims under its insurance policies for lost income and additional expenses. No estimate of potential recovery can be made at this time. Hammonds projected backlog of orders is $3.1 million as of September 30, 2008. The backlog is principally comprised of orders for injectors and skids.

Margins for the nine months ended September 30, 2008 were 12% of revenues compared to 33% of revenues for the nine months ended September 30, 2007. Margins for the three months ended September 30, 2008 were 20% of revenues compared to 24% of revenues for the same period in the prior year. The lower margins were due to the week-long operations shutdown due to Hurricane Ike. Margins are anticipated to increase during the fourth quarter of 2008 as a percentage of revenues as a result of improved absorption of fixed costs over an increasing revenue base and manufacturing efficiencies resulting from new, more efficient equipment and production techniques.

Selling and administrative expenses decreased to $1,102,374, or 61% of revenues, for the three months ended September 30, 2008, compared to $1,427,085, or 46% of revenues for the three months ended September 30, 2007. Selling and administrative expenses were $3,487,746, or 54% of revenues, for the nine months ended September 30, 2008, compared to $3,266,702, or 46% of revenues, for the nine months ended September 30, 2007. The increase was primarily due to overall expenses in engineering, production and marketing of Hammonds' line of ODVs®. Increased expenses related to the mitigation of damages, relocation to new office space within the existing facility, and restoration of services are reflected in the September expenses and will continue into the next quarter.

Our loss from operations was $2,209,116 for the nine months ended September 30, 2008, compared to an operating loss of $1,548,376 for the same period of the prior year.  Our loss from operations was $894,566 for the three months ended September 30, 2008, compared to an operating loss of $419,244 for the same period of the prior year.  Operating expenses include non-cash items, such as depreciation, amortization, and stock based compensation.  Excluding non-cash expenses, our operating loss was $640,128 and $1,438,342, respectively, for the three and nine months ended September 30, 2008. For the three and nine months ended September 30, 2008, depreciation and amortization was $233,638 and $687,874, respectively, and stock based compensation was $20,800 and $82,900, respectively.

Our net loss was $2,471,957 for the nine months ended September 30, 2008, compared to a net loss of $2,226,411 for the nine months ended September 30, 2007. Our net loss was $995,348 for the three months ended September 30, 2008, compared to a net loss of $787,081 for the three months ended September 30, 2007.

For more detailed information, please refer to our September 30, 2008 Form 10-Q filing with the SEC on November 14, 2008.

Hammonds Industries, the premier provider of military aviation fuel additive systems, is revolutionizing material handling and airline towing systems with its Hammonds’ ODV® – the 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 products. Hammonds is a subsidiary of American International Industries, Inc. (NasdaqCM: AMIN).

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.