Houston / Kemah, Texas – August 15, 2011 American International Industries, Inc. (OTCBB: AMIN) (the "Company" or "American") reported revenues of $5,006,029 for the three months ended June 30, 2011, compared to $4,758,595 for the three months ended June 30, 2010, representing an increase of $247,434, or 5.2%. Revenues were $9,231,037 for the six months ended June 30, 2011, compared to $8,485,810 for the six months ended June 30, 2010, representing an increase of $745,227, or 8.8%.

During the three months ended June 30, 2011, Delta Seaboard International, Inc. ("Delta"), in which we hold a 46.4% shareholder interest, experienced an increase in revenues of $541,916 to $2,586,998, compared to $2,045,082 for the three months ended June 30, 2010. During the six months ended June 30, 2011, Delta had revenues of $5,209,697, compared to $4,283,740 during the six-month period ended June 30, 2010, representing an increase of $925,957. Rig service revenues increased for the three and six months ended June　30, 2011, compared to the same period in the prior year by $477,126 and $645,563, respectively. Rig service revenues have increased due to major maintenance on two rigs during 2010. These rigs are operating in 2011. Pipe sales increased for the three and six months ended June 30, 2011, compared to the same period in the prior year by $64,790 and $280,394, respectively. Drilling activities have significantly increased during the six months ended June 30, 2011, compared to the same period in the prior year.

Revenues for Northeastern Plastics, Inc. ("NPI"), our wholly-owned subsidiary, during the three months ended June 30, 2011 were $2,418,810, compared to $2,713,513 for the three months ended June 30, 2010, representing a decrease of $294,703, or 10.9%. NPI's revenues were $4,020,669 for the six months ended June 30, 2011, compared to $4,202,070 for the six months ended June 30, 2010, representing a decrease of $181,401, or 4.3%. NPI's revenues decreased primarily because of lower revenues with one of its principal customers. NPI has added several new customers to replace this business and expects to add additional medium to large customers during the rest of the year.

Cost of sales for the three months ended June 30, 2011 was $2,999,218, compared to $3,018,531 for the three months ended June 30, 2010, representing a decrease of $19,313, or 0.1%. Cost of sales for the six months ended June 30, 2011 was $5,227,781, compared to $5,351,954 for the six months ended June 30, 2010, representing a decrease of $124,173, or 2.3%. Cost of sales decreased due to lower revenues at NPI, partially offset by an increase in cost of sales associated with higher pipe sales at Delta. Margins for the three months ended June 30, 2011 were 40%, compared to 37% for the three months ended June 30, 2010. Margins for the six months ended June 30, 2011 were 43%, compared to 37% for the six months ended June　30, 2010. The primary reason for the increase in margins is due to higher margins on pipe sales at Delta. Margins on pipe sales were 27% for the six months ended June 30, 2011, compared to 17% for the six months ended June 30, 2010. The increase in margins was due to the sale of high-priced pipe from inventory during the six months ended June 30, 2010.

Selling, general and administrative expense for the three months ended June 30, 2011 was $2,400,085, compared to $2,120,048 for the three months ended June 30, 2010, representing an increase of $280,037, or 13.2%. Non-cash stock-based compensation for the three months ended June 30, 2011 was $263,759, compared to $74,840 for the three months ended June 30, 2010, representing an increase of $188,919, of which $106,559 ($60,000 in restricted shares of common stock and $46,559 in stock warrants) was compensation to S. Scott Gaille, who was appointed President of American on June 24, 2011. Delta's selling, general and administrative expenses increased in support of higher rig revenues. Selling, general and administrative expense for the six months ended June 30, 2011 was $5,352,529, compared to $5,232,850 for the six months ended June 30, 2010, representing an increase of $119,679, or 2.3%. Non-cash stock-based compensation for the six months ended June 30, 2011 was $771,308, compared to $1,037,610 for the six months ended June 30, 2010, representing a decrease of $266,302. For the six months ended June 30, 2010, $847,750 in stock-based compensation was to the executive officers of Delta in consideration for extending their employment agreements. This decrease in stock-based compensation was offset by increases in selling, general and administrative expenses incurred in support of higher rig revenues for Delta. Selling, general and administrative expenses for the six months ended June 30, 2011 included higher than normal legal costs related to the Botts lawsuit settlement. Selling, general and administrative expenses for Brenham for the six months ended June 30, 2011 were $61,616 and consisted of travel, consulting, and legal expenses associated with one-time costs incurred for Brenham to become a public company and consulting fees to locate oil and gas properties.

Other expenses were $172,451 for the three months ended June 30, 2011, compared to other income of $2,222,077 for the three months ended June 30, 2010, representing a decrease of $2,394,528 from the prior period. Other expenses were $527,472 for the six months ended June 30, 2011, compared to other income of $2,872,274 for the six months ended June 30, 2010, representing a decrease of $3,399,746 from the prior period. Other income for the three and six months ended June 30, 2010 includes non-cash compensation for consulting services of $1,370,000. The Company received 1,000,000 restricted shares of ADB International Group, Inc. common stock valued at $1.37 per share for these consulting services. Other income for the three and six months ended June 30, 2010 included gains on the sale of assets of $781,204. During the three months ended June 30, 2010, American sold an 8 acre tract of land with a book value of $175,480 for $340,445 and recognized a $164,965 gain for this transaction, see Note 4. During the three months ended June 30, 2010, American sold its 51% ownership in Delta's facilities with a book value of $422,737 and the purchaser assumed the $943,500 note payable on the property. American recognized a $520,763 gain for this transaction. On June 23, 2010, Joe Hoover, President of DCP, purchased 20% of the 1,000 shares of Common Stock of DCP held by American for $20,000 in cash and a $55,000 promissory note. American recorded a $74,814 gain on sale of assets for this transaction. Additionally, other income for the six months ended June 30, 2010 included the receipt of $700,000 by Delta as a cash settlement for its claims in an insurance lawsuit.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") and excluding the non-controlling interest and discontinued operations for the three months ended June 30, 2011 reflected a loss of $290,781, or $0.02 per share, compared to EBITDA from continuing operations and excluding the non-controlling interest of $2,128,420, or $0.21 per share for the three months ended June 30, 2010. We had a net loss attributable to American of $545,951, or $0.04 per share, for the three months ended June 30, 2011, compared to net income attributable to American of $1,513,018, or $0.15 per share, for the same period in 2010. Our net loss from continuing operations for the three months ended June 30, 2011 included interest expense, taxes, depreciation and amortization, income from discontinued operations and loss attributable to non-controlling interest of $124,999, $7,756, $127,415, $5,000 and $22,530, respectively. Our net income for the three months ended June 30, 2010 included interest expense, taxes, depreciation and amortization, loss from discontinued operations and loss attributable to non-controlling interest of $102,132, $36,451, $114,328, $362,491 and $69,867, respectively.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") and excluding the non-controlling interest and discontinued operations for the six months ended June 30, 2011 reflected a loss of $1,373,221, or $0.11 per share, compared to EBITDA from continuing operations and excluding the non-controlling interest of $1,650,887, or $0.17 per share for the six months ended June 30, 2010. We had a net loss attributable to American of $1,924,901, or $0.16 per share, for the six months ended June 30, 2011, compared to net income attributable to American of $408,609, or $0.04 per share, for the same period in 2010. Our net loss from continuing operations for the six months ended June 30, 2011 included interest expense, taxes, depreciation and amortization, loss from discontinued operations and income attributable to non-controlling interest of $244,353, $16,247, $236,670, $54,410 and $22,501, respectively. Our net income for the six months ended June 30, 2010 included interest expense, taxes, depreciation and amortization, loss from discontinued operations and loss attributable to non-controlling interest of $228,957, $50,231, $235,449, $727,641 and $413,201, respectively.

For more detailed information, please refer to our June 30, 2011 Form 10-Q filing with the SEC, which was filed on August 15, 2011.