ADGI Announces Net Income for the Second Quarter 2001; Announces Amended 10Q to be Submitted Immediately.

Business Editors

NEW YORK--(BUSINESS WIRE)--Aug. 16, 2001

American Diversified Group, Inc. (OTCBB:ADGI) today announced that it had net income of $194,966 on revenues of $900,673 during the second quarter of 2001, a significant improvement over the same period last year, when ADGI reported net loss of $59,228 on revenues of $825,666. The positive second quarter results also significantly reduced the net loss from $567,209 in the first quarter down to $313,099 for the first half of the year 2001.

ADGI also announced that there was an error made in the actual filing of the 10Q that reflects the net income erroneously in the financial statements but correctly in the notes to the financial statements. The amended 10Q will be filed immediately.

ADGI reported that the improved second quarter resulted mostly of strong performance by its subsidiary, Global Transmedia Communications Corporation, which reported a net income of $329,466. Global's net income was achieved through the services performed for its strategic partner, Global VoIP, Inc. and overall reduction in overhead that was made possible when the company restructured its organization in May 2001. The Global Transmedia and Global VoIP relationship will continue its expansion mode and ADGI anticipates generating significant revenue from the services to be rendered and network provided in the succeeding quarters.

"We are pleased with the turnaround of the company in the second quarter," stated Jerrold R. Hinton, President and CEO of ADGI. "It has been a tough year for all companies in this industry and we've had to reduce costs and work towards strengthening our relationships and maintaining our profitably. We continue to reduce all costs, and as things become more stable, we would be able to further reduce our consulting and professional fees and costs. We are confident that as we continue our strong relationship with Global VoIP and with the dedication of our staff to grow our network and customer base, we will be able to grow our revenue base, thereby further ensuring a positive result."

About ADGI

    110 N. Center St, Suite 202, Hickory, NC 28601
    Contact:  Jerrold R. Hinton, Ph.D., President/CEO
    828/322-2044  e-mail: [e-mail]

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.

About Global Transmedia Communications Corporation

    444 Brickell Avenue, Suite 522   Miami, FL  33131
    [phone]

Global Transmedia is a facilities-based international telecommunications company. Its core competency is providing VoIP networks for international call origination, termination, voice and data transport. It has been granted International Carrier Status under Section 214 Authority from the Federal Communications Commission (FCC). This Authority granted by the FCC gives Global Transmedia certain rights and privileges that AT&T, MCI and major carriers currently enjoy.

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 10K-SB 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.