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Kemah, Texas Ė December 22, 2004 American International Industries, Inc. (OTCBB: AMIN) today announced the completion of the sale by its subsidiary, Delta Seaboard Well Service, of three rigs nos. 12, 14 and 16 located in New Iberia, Louisiana to Basic Energy Services, LP of Midland, Texas for $5,000,000 in cash. In addition, Delta Seaboard has sold a tugboat and related equipment for $225,000 cash, and previously sold rig no.10 for $1,300,000. Delta is presently marketing two additional rigs and related accessories, located in Louisiana and estimates proceeds of $3,000,000. Further, Delta currently owns six land rigs in Texas, four operating at full capacity with a substantial backlog of orders, which Delta believes will continue for the foreseeable future, based upon the continuing price levels of oil and gas.

Robert W. Derrick, Jr., Deltaís President, stated, "Delta Seaboard is enjoying a very prosperous year due to the increase in the price of oil and gas. We are currently in the process of expanding on our plan to acquire additional land rigs in order to satisfy the demand for our services.

"Our rigs and equipment in Louisiana were operating in shallow waters and we determined to concentrate our efforts and expertise in our Texas based land rigs. Delta is expecting that the demand for oil and gas services as well as its sales from the steel pipe division will continue to be very strong and profitable for the foreseeable future."

Mr. Daniel Dror, Chairman and C.E.O. of AMIN stated, "we are in the process of completing the acquisition of Streamline Production Systems, Inc., based in Beaumont, Texas. Streamline is also in the oil and gas service business and its field is very complementary to the business operations of Delta. We project that in the event that the transaction will close the combined revenues for Delta and Streamline will reach approximately $25,000,000 for the next fiscal year".

As previously announced, AMINís wholly-owned subsidiary, Northeastern Plastics, Inc., acquired the rights to market certain of its products under the name "MOTOR TREND". NPI is a distributor of a diversified product line with emphasis on the automotive after-market. NPI is in the process of expanding its worldwide customer base into the fast growing Asian market by offering new products through new distribution and marketing agreements. We believe that with the recent "MOTOR TREND" marketing agreement, NPIís revenues should increase substantially during fiscal 2005.

AMIN also has substantial real estate holdings in Galveston County, Texas and is negotiating the sale or development of 300 acres with approximately 14,000 linear feet of water frontage in Dickinson and Galveston Bay. AMINís real estate holdings are recorded at its original cost of $225,000. Management believes that the market value of its real estate holdings is substantially higher and any real estate transactions related to the property should generate a significant profit.

The Companyís board of directors believes that the price of the Companyís common stock is substantially undervalued. As a result, the board of directors has authorized the Company to repurchase up to 500,000 shares from time to time in the open market.

The Companyís business strategy is based upon a GE type holding company model. AMIN is a growing entity that takes an active role in the companies under its control, to foster growth and profitability through use of AMINís financial resources and management expertise. AMIN owns interests in industrial companies, oil and gas service companies, and in the real estate business principally in the Houston, Texas area. Each of the subsidiary companies is expecting to grow in its particular market or industry. By operating as a holding company, AMIN serves both as a financial and professional business partner for its subsidiaries, improving each subsidiariesí access to capital, consolidating administrative functions, providing financial and management expertise, and collectively benefiting from economics of scale.

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 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 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.

Investor Relations: Rebekah Ruthstrom Tel: 281-334-9479 email: