ADGI's Affiliate Expands Into Federal Government Communications Market.

HICKORY, N.C.--(BUSINESS WIRE)--Oct. 11, 1999--

American Diversified Group, Inc. (OTC BB:ADGI) announced today that its telecommunications affiliate, Global Transmedia Communications Corp. (Global) has begun negotiations with the U.S. Government offering its on-net calling services to Federal agencies in the U.S. and abroad.

Global stated that the U.S. government is the single largest purchaser of calling services. Congress has enacted regulations administered through the GSA/FSA giving small and growing companies like Global a special opportunity to gain awards from large government contracts. The Federal Government fiscal year has just begun and receiving a successful award for services under its overall telecommunications contracts will significantly increase revenues this year over and above the contracts already held by Global for the private services.

ADGI's affiliate began talks with the Federal Government some time ago and now has received the approval to submit its bid for calling services to and from its foreign locations and the U.S.

Dr. Hinton, Chairman of ADGI stated that "Global is in a unique position to seek this government business on a favored basis due to special government set asides enacted by Congress for small and disadvantaged businesses allowing them to become involved in large government contracts. Global is now working through the GSA on its contract offer".

Congress has a policy of granting its overall telecommunications contracts to a few large corporations who successfully bid for these services. As a condition for awarding these contracts the Federal government requires that these large corporations offer a portion of each contract in turn to be available for subcontract to qualified small businesses under a "set aside" program.

Additionally, ADGI and Global announced that merger talks are successfully continuing and representatives of the companies will be meeting next week to continue the required due diligence and seek to finalize the steps for closing the merger before year end.

Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Act of 1995. The words "forecast", "project", "intend", "expect", "should", "would", and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (finance or operating) or achievements to differ from future results, performance (financing and operating) or achievements expressed or implied by such forward-looking statements. The above are more fully discussed in the Company's SEC filings.