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AND YEAR END UPDATE

Kemah, Texas – December 12, 2005 International American Technologies, Inc. (OTC:"IMTG") today announced an update in business development of its subsidiary, Hammonds Technical Services, Inc. ("Hammonds").

Mr. Carl Hammonds, President of Hammonds stated, "In the nine months since Hammonds became an IMTG subsidiary, all of its three divisions have accelerated their production and marketing operations in preparation for substantial growth which commenced in the last quarter of 2005 and is expected to continue throughout 2006."

Most recently, Hammonds delivered two initial G-30 Omni Directional Vehicle (ODVÔ ) to Robins AFB, GA. ODV is a trademark of Hammonds Technical Services. The G-30 ODV is primarily used by the Air Force for maintenance of various aircraft including the C-17 and C5 heavy cargo planes. Hammonds ODVs are being recognized for their ability to move in any direction and operate in confined areas. In addition, the Air Force informed Hammonds that it will use the G-30s for cargo loading and aircraft towing. Hammonds believes that these new applications for its ODV represents a significant new potential market.

Hammonds’ ODV patents cover a wide range of industries and vehicle classifications including snow handling, construction and industrial materials handling. Unlike other concepts that claim the ability to maneuver in all directions, the Hammonds ODV is capable of operating on all types of surfaces, can climb steep grades and operate at speeds up to 40 MPH. These highly versatile attributes make the Hammonds ODVs suitable for everything from precisely handling weapons under the wing of fighter aircraft to pushing dirt and debris. Carl Hammonds stated, "There is no other concept in the world that can match the versatility and performance of the patented Hammonds Omni Directional Vehicle".

Other uses of Hammonds’ ODVs include forklifts, freight spotting tractors called "mules", people movers, snow plows, highway mowing machines, paving brooms, catering vehicles and aircraft ground handling equipment, among others. Hammonds plans to either manufacture the ODVs or license third parties to manufacture its unique and versatile ODV product line. Hammonds’ President, Carl Hammonds stated, "We have carefully taken the time to consult with virtually every area of industry where the Hammonds’ ODV has application, being certain that we could provide an overwhelming advantage over the current art and we carefully evaluate our ODVs unique performance advantages and value when presenting our ODV product lines."

Mr. Hammonds further stated, "As a supplier to the US military and to industry for over twenty-five years in aviation fuel treatment and municipal water treatment, Hammonds’ products and services are known as industry standards wherever they serve."

Hammonds is currently in the process of signing nationwide distribution agreements for its three classes of ODVs: Industrial Utility, Construction Equipment, and Aviation Ground Support. Snow management will be our primary focus to take advantage of an immediate need as a result of the early and heavy snow season across the US plains and Midwest. Orders have been taken for equipment and negotiations are proceeding for third party distribution territories in Colorado and Michigan and Hammonds has received commitments and pending orders for various ODV configurations from users in Louisiana, Georgia, Tennessee, Florida, Alabama, Oregon, Washington, New York, Maine, New Hampshire, Massachusetts and British Columbia, Canada. Hammonds will deliver its SP-25 ODV snowplow to Breckenridge, Colorado on December 12, 2005, where demonstrations will be held for several surrounding cities. The SP-25 is a compact version of the Hammonds larger SP-42 and will be used specifically for Breckenridge city sidewalks, parking lots and pedestrian areas. We anticipate having major urban market areas covered by mid 2006 for all three sales classifications through an aggressive marketing campaign currently under way. Filling initial distributor requirements will generate stock orders for approximately 100 units and generate revenues in the range of approximately $3,000,000.

Hammond’s water division has received an order to supply equipment and chemicals for six new large poultry processing facilities where its patented Vortex calcium hypochlorite feeders and chemical will be used. Orders for these six facilities will increase Hammond’s chemical sales by 700,000 pounds or approximately $910,000 in 2006. Hammonds began distribution of its chemicals in combination with its proprietary Vortex feeders just over two years ago and sales have doubled during each year. Hammonds projects chemical sales in 2006 to exceed 2,000,000 pounds, up from 1,000,000 pounds in 2005, generating revenues of approximately $2,600,000 in chemical sales for the water division in 2006. Hammonds has a marketing agreement with Arch Chemical that guarantees all chemical consumed in Hammonds’ proprietary feeders will be distributed exclusively by Hammonds and its nationwide distribution network. Hammonds currently has in excess of 460-patented Vortex feeders in a range of applications including food processing, public drinking water, waste water treatment and industrial waste treatment. Each of these feeders consumes between 5-600 pounds of chemical per day, depending on application, generating a steady growth in chemical revenues. Mr. Hammonds stated, "Much of our marketing focus is in the area of large food processing and waste water systems that consume 400-600 pounds per day." Hammonds’ ability to supply both equipment and chemical is common to both the fuel and water equipment divisions.

The fuel additive injection division of Hammonds continues to grow significantly. Worldwide attention to dyeing of motor fuels for taxation purposes has brought about a dramatic increase in demand for Hammonds additive systems. The US IRS has mandated motor fuels to be dyed beginning January of 2006 by all major marketers of diesel fuel. Hammonds has been a leader in that technology and has already begun worldwide deliveries of equipment for that purpose. An initial order for $54,620 from Shell Oil in Turkey will supply two terminals with equipment. An additional 60 terminals in that country will install equipment as quickly as installations can be completed. Hammonds has delivered dye injectors to Canada, Thailand, Korea, Malaysia, Iceland, and countries throughout the European Union. Testing has been completed on a system for injecting a performance enhancement for drilling rig fuels. Pending orders of $2.4 million with initial orders of $490,000 are expected by the end of December 2005. In addition to commercial motor fuels, Hammonds has received an order for $132,248 for multi additive fueling carts from Egypt to be used in producing JP-8 specification aviation fuels. Hammonds continues a twenty-five year history of providing additive equipment for both the United States military and other countries flying American made aircraft.

Every part of our business is enjoying dramatic growth due primarily to our ability to produce finished product. While Hammonds has enjoyed broad acceptance of its products, with the infusion of capital provided by IMTG’s parent, American International Industries, Inc. (OTCBB:"AMIN"), Hammonds has been able to accelerate production of its wide range of proprietary equipment and supplies that it has developed over the past twenty-five years. In addition to the capital provided by American International Industries, Inc., it has also acquired a new 106,000 square foot manufacturing facility for Hammonds located on 10-acres with full-length rail siding onsite. Our new production facility and new production equipment currently being installed will help Hammonds realize the full potential of its products and services.

Investor Relations: Rebekah Ruthstrom Tel: 281-334-9479 email: rruthstrom@americanii.com