ADGI Entering Asian Telecom Market.

Business Editors/Technology Writers

NEW YORK--(BUSINESS WIRE)--Aug. 9, 2001

American Diversified Group, Inc. (OTCBB:ADGI) announced today through its agreement with Global VoIP, Inc., ADGI's wholly owned subsidiary, Global Transmedia Communications Corporation ("Global Transmedia"), will be entering the Asian market during the third quarter.

ADGI has signed a Letter of Intent to acquire Intellix, a Malaysian company and part of the Global VoIP, Inc. consortium, to begin offering services throughout Asia. Under the Letter of Intent, a joint venture company, Global Transmedia Asia, will be formed. ADGI will acquire 80% of Global Transmedia Asia, which will become part of Global Transmedia. Although the definitive terms are being finalized, Intellix will continue to fund 2/3 of its operating costs through the end of the year while Global Transmedia begins to ramp-up calling traffic. Intellix will receive either cash or ADGI shares on a performance basis based on the revenues and profits earned from these contracts. The definitive agreement is expected to be finalized and signed during the month of August.

Dr. Jerrold Hinton, Chairman and CEO of ADGI stated, "We are very pleased to be working on another acquisition. Global Transmedia-Asia expands our network capabilities into the Far East which is a rich telecommunications market with tremendous future potential. We expect more telecommunications agreements with carriers in this region to be signed before the end of the year."

Intellix has an agreement with TimeDotCom, Malaysia's second largest PTT, covering the countries of Malaysia, Singapore and Thailand. Intellix projects revenues from this agreement of at least $1.5 million through the end of the year. These operations do not include other telecom agreements from Global VoIP, Inc. in Asia that are expected to begin services during the latter half of fiscal 2001. Revenue traffic from these agreements is expected to grow significantly during fiscal 2002.

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.