Houston/Kemah, Texas – November 7, 2008 American International Industries, Inc. (NasdaqCM "AMIN") Mr. Daniel Dror, Chairman and CEO, announced today that the board of directors of American International Industries, Inc. has set a new record date for the special dividend of shares of common stock of its subsidiary, Hammond Industries, Inc. (OTCBB: "HMDI") to AMIN shareholders. Additionally, the Company has increased the special dividend from one to two shares of HMDI common stock for each share of AMIN common stock. AMIN shareholders of record as of the close of business on Wednesday, December 31, 2008, will be issued two shares of HMDI common stock (free-trading to non-affiliates) for each share of AMIN common stock owned and held on the record date. The shares of HMDI common stock will be issued on or about Wednesday, February 25, 2009. Based upon HMDI’s closing price of $0.30 per share on November 6, 2008, for each share of AMIN common stock held by our shareholders, they will receive $0.60 in value.

This special dividend of Hammonds’ shares to the Company’s shareholders is classified as a property dividend rather than a stock dividend. Mr. Dror stated that "this special dividend will not be dilutive to AMIN’s shareholders because no AMIN shares will be issued; therefore, on the record day, the value of AMIN’s shares will not be reduced by this dividend. The special dividend of HMDI shares to AMIN’s shareholders should benefit AMIN shareholders because they will be receiving a significant number of HMDI shares, which are subject to quotation on the NASDAQ bulletin board. Further, it is our belief that this dividend will improve the liquidity of HMDI’s common stock by increasing the number of HMDI shareholders."