ADGI Announces Net Income for the Third Quarter 2001.

Business Editors

HICKORY, N.C.--(BUSINESS WIRE)--Dec. 4, 2001

American Diversified Group, Inc. (OTCBB:ADGI) today announced its operating results for the third quarter ending September 30, 2001. ADGI had net income of $542,231 on revenues of $1,137,880, a significant improvement over the same period last year, when ADGI reported net loss of $45,089 on revenues of $945,277. For the nine months ended September 30, 2001, ADGI reported total revenues of $2.797 million and net income of $229,132. During the same period last year, the company reported revenues of $2.90 million and net loss of $15,155.

Global Transmedia Communications Corporation, ADGI's wholly owned subsidiary reported a strong third quarter, reporting revenues of $1.09 million and net income of $860,278.

The third quarter results were a continuation of the growth begun in the second quarter and advancement of our business plan. As part of the expansion process, Global Transmedia continues to reorganize and is working with its strategic partner, Global VoIP, to consolidate telecommunications operations, further reduce overhead, expand existing networks, and extend operations into Asia and India.

"We are pleased with the progress of our operations," stated Jerrold R. Hinton, President and CEO of ADGI. "We believe the third quarter results show a substantial, continuing and steady improvement towards our goals. Regrettably, we were a few days late in filing the 10QSB with all that is happening, however, we are confident that after all is said and done, our shareholders will be pleased with our company's continuing improving business picture. We project this trend will continue through the fourth quarter and we look forward with confidence toward 2002. We have significant changes in our operations and structure underway, allowing us to be more efficient while taking advantage of opportunities afforded us, making us better suited to address the changing landscape of the telecommunication industry."

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.