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 AWARDED PATENT ON DRAMATIC NEW PUMP DESIGN

Houston, Texas – December 11, 2007 -- Hammonds Industries, Inc. (OTCBB: HMDI), announced today that U.S. Patent 7,278,836 B2 was awarded to Hammonds, covering a metering pump capable of delivering a constant rate of flow, over a wide range of viscosities, at infinitely variable delivery rates. Carl Hammonds, Hammonds President said, "We are excited about the enormous commercial potential for our new Hammonds PumpTM technology. Hammonds’ revolutionary design is able to dispense with digital accuracy, shear sensitive liquids such as polymers, petroleum products, pharmaceuticals, food products, serving many industries such as cosmetics, refined products, oilfield exploration and production, water and waste treatment, mining, and food processing."

Pumps represent the second most frequently purchased item in the global stream of commerce, behind electric motors. World demand is projected to rise 4.8% through 2010 to $37 billion. Potential applications of the revolutionary new Hammonds’ PumpTM technology in various industries include pipeline transmission, downhole injection systems for enhanced oil and gas recovery, municipal water and waste treatment, as well as refinery and chemical plant applications.

Most pumps rely on the movement of the fluid being pumped to effect closure of the valves. That design feature limits operation of the pump to higher speeds in order to maintain effective closure of valves. Poorly sealing valves can contribute to cavitation and other operating problems. The dramatic difference in the new Hammonds PumpTM design is the use of mechanically operated valves, which can enable operation over a much greater range of flow and working pressures.

Carl Hammonds said "We were able to achieve continuous delivery of fluid using two identical pumping chambers, one operating in suction mode as the other is in discharge mode, switching modes with each cycle. Large displacement pumping chambers allow for slow operating speed, reducing cavitation and other volumetric inefficiencies. Operated by ball-screw mechanisms, the pistons can be digitally actuated to dispense precise volumes ranging from fractions of an ounce to as much as several gallons of flow per minute, with pharmaceutical accuracy. A significant departure from prior art in the design of pumps is the fact that the valves in the Hammonds PumpTM are mechanically operated, providing positive sealing and enabling operation at very low speeds."

 

Carl Hammonds said "In addition to our development of the new Hammonds PumpTM, we have continued increasing our investment in Hammonds’ infrastructure and manufacturing capacity to enhance our ability to develop new products and designs necessary for the realization and commercial exploitation of several of the new industrial opportunities developing within the Hammonds companies."

About Hammonds Industries

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 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 subsidiary of American International Industries, Inc. (NasdaqCM: AMIN).

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.

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.