ADGI Announces Results of Meetings in London with Strategic Partners.

Business Editors

NEW YORK--(BUSINESS WIRE)--July 25, 2001

Today, American Diversified Group, Inc. (OTCBB:ADGI) ("ADGI") announced the initial results of the meetings held in London last week with its strategic partners. Attending these meetings were ADGI's management and directors, management of Global Transmedia Communications Corporation ("Global Transmedia"), a senior partner of Rosenman & Colin - ADGI's outside counsel, Global VoIP, Inc. executives, officers and counsel of IP World Limited and certain Far East telecommunications executives.

The activities in London were the culmination of several months of meetings that took place in the U.S., Spain and Australia and are the direct result of the ADGI's efforts through Dr. Jerrold Hinton, Chairman and C.E.O. started less than 2 months ago to accelerate network expansion and increase revenues and profitability.

ADGI has reached agreement in principle on the terms of its acquisition of Global VoIP, Inc., and a definitive agreement based on a signed Letter of Intent is expected to be executed next month. Global VoIP expects to fund several new networks and to enter into additional PTT agreements with a number of foreign national carriers and entities.

Beginning in the third quarter of 2001 and through the first quarter 2002, Global VoIP, Inc. has approved construction of six (6) new networks, and under its agreement with ADGI, Global Transmedia will build out these networks and retain 75% ownership. ADGI has also approved the planned expansion of Global Transmedia's existing networks.

A number of potential acquisitions of operating networks has been investigated with final negotiations and due diligence now underway. All acquisition candidates' criteria fit into the Global Transmedia network development plan. The networks are currently achieving increasing profitability and clearly demonstrate the potential for continued future profitable growth. All acquisitions are being considered on a performance payout basis dependent upon current and future earnings performance.

ADGI has also initiated new relationships in the Far East, signing a letter of intent with the terms of the definitive agreement expected shortly.

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 year ended December 31, 2000, 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.