ADGI Subsidiary Announces Agreement with India-based Company.

Business Editors/Technology Writers

MIAMI--(BUSINESS WIRE)--Oct. 29, 2001

Global Transmedia Communications Corporation, a subsidiary of American Diversified Group, Inc. (OTCBB:ADGI), today announced that it has entered into a new agreement with Sigma Online, Ltd., an India based technology and internet company.

As part of the agreement, Sigma Online will provide consulting services to Global Transmedia and will facilitate Global Transmedia utilizing networks and technology. The added networks will allow Global Transmedia to pass approximately $100,000 of traffic in the initial months, ramping up to $1,000,000 per month as the planned capacity becomes available into various countries. In addition, it expands Global Asia network capabilities and services in its new Asia market and its first foothold in Africa. Global Transmedia has maintained a business relationship with Sigma Online since March 2000. Sigma Online is a technology and data/communications company based in India with offices in the eight (8) major cities in India. It also works with various partners in several other countries including Morocco and Mexico.

Internet telephony in India is scheduled to be deregulated in April 2002. Global together with Sigma Online will be able to leverage this opportunity. The Indian market is vast, one of the largest in the world, which has virtually remained closed. The relationship with Sigma Online will give both companies a giant start in this market.

Vivian Manevich, President of Global Transmedia states, "We are very pleased to continue and expand the relationship we have had with Sigma Online. Sigma was Global Transmedia's largest customer in 2000 and we continued to work with Sigma during 2001, as we reorganized and restructured under Dr. Hinton's plan. We are confident that in a very short period of time, we will be able to surpass our previous revenue level and achieve higher success."

Jerrold R. Hinton, PhD, CEO and President of ADGI states, "Sigma Online has been a great partner and customer over the last two years. We are pleased to have them work with us through this period of adjustment within our company as we announced a few months ago, and join in our expansion into the Asia market. We continue to work hard towards achieving our goals and this relationship with Sigma Online is a major step in achieving those goals."

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.