Hammonds Industries to Deliver Omni Directional Tractors to the U.S. Army

Houston, Texas – December 3, 2007 -- Hammonds Industries, Inc. (OTC Bulletin Board: HMDI), the leading provider of military aviation fuel additive systems and manufacturer of revolutionary Hammonds’ Omni Directional Vehicles (ODV®) for material handling and aircraft towing, announced today that the U.S. Army has ordered from Hammonds Technical Services, Inc., a subsidiary of Hammonds Industries, two Hammonds’ ODV® tractors to be used primarily for aircraft towing and ground support equipment handling. Hammonds’ ODV® is a unique vehicle that can move in every direction, including sideways and has multiple U.S. and foreign patents that cover its use as aircraft tow tractors, forklifts, high capacity pallet jacks, people movers, security vehicles, highway mowing machines and terminal freight tractors.

Carl Hammonds, President of Hammonds Industries, said, "We are pleased to provide our G-60 series tractors to the U.S. Army. We believe the Hammonds’ ODV® to be a highly versatile vehicle that will enhance the efficiency of the Army’s operations by delivering a new level of precision control and the superb maneuverability required to handle military aircraft and equipment. Ultimately, we feel that the Hammonds’ ODV® will set new standards for handling aircraft. The adaptability of the Hammonds’ ODV® allows us to work closely with the military to deliver a product that caters to the Army’s demanding equipment handling needs."

"The Hammonds’ ODV® is also used by the U.S. Air Force to position materials used during aircraft maintenance operations. With the Hammonds’ ODV®, Hammonds has a unique opportunity to bring reliable and innovative technology to the industrial materials handling industry."

About Hammonds Industries

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

Information for investors, including an investment profile about HMDI and free e-mail alert notifications, are available at http://www.hawkassociates.com and http://www.americanmicrocaps.com.

For investor relations information regarding Hammonds, contact Antonella Montagna or Julie Marshall, Hawk Associates, at 305-451-1888 or e-mail: info@hawkassociates.com.

For more information about AMIN, 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.