ADGI Announces Continuing Expansion for its Internet Affiliate in Colombia.

HICKORY, N.C.--(BUSINESS WIRE)--March 31, 1999--American Diversified Group (Nasdaq BB:ADGI) announced Wednesday that its internet telephony affiliate, Global Transmedia Communications Corp. ("GTCC"), Aventura, Fla., is beginning implementing plans to further develop its calling services in its initial market in Colombia.

With the expanded relationship recently announced by ADGI, GTCC will have the corporate backing it needs to accelerate its business plans.

GTCC, through GTCNetLink, a private subscriber based calling network, is implementing the first two (2) stages for upgrading its system in Bogota, Colombia and expanding services to other cities in that country. The system upgrade will permit GTCC to terminate many times the calling minutes originally estimated for this market.

Recent independent studies have indicated that the demand for Voice over IP is growing as strongly for calling between Latin American countries and Colombia as it is to the United States. Additionally, the increased capacity will permit GTCC to link other cities in Colombia to its growing worldwide network.

The economics of this calling hub network will provide a new opportunity to increase its earnings at its existing locations. The new capacity will allow for a significant increase in calling minutes and revenues to be earned from GTCNetLink in its original Colombian markets and it will permit GTCC to offer its network locations to service the needs of other Voice over IP carriers outside of South America who wish to terminate calling minutes at GTCC Colombian locations. It will also afford GTCC a reciprocal opportunity to add Voice over IP call destinations for its Colombian service to areas outside of South America not covered by GTCNetLink directly.

During the second quarter of 1999, GTCC anticipates significant growths in its services facilitated by this expansion. Shorty, GTCC expects to initiate marketing directly to both callers in Colombia and to other carriers who want to deliver increasing amounts of calling traffic to this market. GTCC expects to begin generating services and revenues above the minimum calling minutes being purchased under the current contract. The economics of Voice over IP still can save callers as much as 90% over the traditional phone network.

For further information, ADGI has a Web Page at www.adgrpinc.com and E-Mail address [e-mail].

Executive Offices: 110 N. Center St., Suite 202, Hickory, NC 28601 Tel: [phone] - Fax [phone]. NY Investor Relations: 45 Rockefeller Plaza, Suite 2000, NY, NY 10111 Tel: [phone] - Fax [phone]. Global Transmedia Communications Corp. 305/931-4232.

Except for the historical information herein, the matters discussed in this press release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary based upon a number of factors, including, but not limited to, risks in product and technology development, market acceptance of new products and continuing demand, the impact of competitive products and pricing, changing economic conditions and other risk factors contained in the company's most recent annual report and other filings with the Securities and Exchange Commission.