ADGI Announces Management Changes.

Business Editors/Technology Writers

HICKORY, N.C.--(BUSINESS WIRE)--Dec. 10, 2001

American Diversified Group, Inc. (OTCBB:ADGI) today announced the appointment of Mr. Pzemyslaw L. Kostro as Chairman of the Board of Directors and Chief Executive Officer of American Diversified Group, Inc. and the future expansion of the Board of Directors. Dr. Jerrold R. Hinton will continue to serve as President and Vice-Chairman of the Board. Dr. Hinton stated, "For years we have been endeavoring to position the company globally and to get the proper team in place. We have been searching for the right partners and additions to our management team to lead ADGI forward in its aggressive business plans and I am excited and pleased to announce Mr. Kostro has accepted the Chairman and CEO roles at ADGI. Mr. Kostro is a very successful and prominent international businessman and financier, having assisted the Company in many ways over the last year and a half and his further involvement and experience offer us many new advantages."

Mr. Kostro represents a key investor in the company and has been very influential in directing both new business and potential acquisitions to the Company. Several of these opportunities are presently in the due diligence process. Mr. Kostro is an attorney specializing in banking and finance currently residing in Warsaw, Poland. His primary focus over the past 5 years has been merchant banking activities, financing both private and public companies, arranging mergers, acquisitions, business combinations, taking private companies public (IPO's) and restructuring public companies to take advantage of the ever-changing market opportunities. Mr. Kostro has conducted business all over the world having lived in the Far East for many years and has very strong ties and relationships in India, Asia, Europe, Africa and the Middle East.

Mr. Kostro stated, "I look forward to continue working with Dr. Hinton and our team in my new capacities to advance ADGI as a truly global company. This is another step in ADGI's strategic plan and in equipping ADGI both in management and funding. The company has a strong presence in Mexico, Central and South America and I will be able to provide such presence as we develop our activities in the Far East which are currently underway, and in Africa, Europe and the Middle East as our network capacity increases. I am placing emphasis on continued revenue growth and increased profitability. We will make additions to the company's Board and management with persons that will specifically fulfill the needs of the company in those areas that assure the success of our plans."

Mr. Thomas J. Craft, Jr. will continue to serve as Corporate Counsel and Company Secretary but will no longer be a member of the Board.

About ADGI

3768 Sarazen Ct., NE, Conover, NC 28613 828-459-0916 [e-mail] Contact: Jerrold R. Hinton, Ph.D., President/CEO

ADGI is a fully reporting public company with all filings current with the Securities and Exchange Commission. The companies that comprise the ADGI group of companies are majority-owned and part of its operating group. ADGI will continue to make strategic investments in synergistic and complementary companies to create the powerful leverage opportunities that will further ensure the success of the company.

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. Readers are cautioned as to potential risks, as discussed in the "Factors That May Affect Future Results" section included in the Company's Annual Report on Form 10-KSB filed with the SEC for period ending December 31, 1999, and the risks discussed in the Company's other filings with the SEC. While management believes that the expectations reflected in the forward-looking statements and assumptions upon which the forward-looking statements are based are reasonable, it can give no assurance that such expectations and assumptions will prove to be correct.