ADGI Subsidiary Announces Mexico Progress.

Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 7, 2000

Global Transmedia Communications Corporation, a wholly-owned subsidiary of American Diversified Group, Inc. (OTCBB:ADGI) announced today that the latest expansion phase of its Mexico network has been completed.

Global Transmedia also announced it has signed an agreement with a U.S.-based communications company that is seeking to substantially increase its long distance traffic to Mexico.

"As had been previously announced, there were delays in equipment delivery, circuit connections and other technical issues that inhibited the company from completing the latest phase of the network expansion on a timely basis," states Tim Huff, Chief Technology Officer. "However, we have since installed over one million dollars of network equipment that will enable us to transport the required traffic as called for in our agreements."

Jerry Hinton, PhD, President and CEO of ADGI states, "It has been a long process, but credit goes to Global Transmedia's technical team for overcoming a number of unexpected external technical obstacles which had arisen during the expansion of our Mexico network."

The latest agreement entered into by Global Transmedia is expected to generate approximately $200,000 in monthly revenues and this figure is expected to increase up to $400,000 per month over the next few months. This income will be in addition to the approved contract with LD Wholesale, Inc.

"We are pleased to be in the position now to experience the growth that we had expected at the beginning of the year," adds Dr. Hinton. "In today's market conditions, with the likes of AT&T, MCI and Net2Phone losing ground and not meeting market expectations, ADGI has been reporting increased revenues during 2000 and continues to have a net income through the third quarter. We expect that the fourth quarter results of operation will be significantly better than the third quarter."

About Global Transmedia

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. Global Transmedia 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.

About ADGI

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 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.