ADGI Subsidiary Announces Steady Growth.

Business Editors

NEW YORK--(BUSINESS WIRE)--Feb. 20, 2001

Global Transmedia Communications Corporation, a wholly owned subsidiary of American Diversified Group, Inc. (OTCBB:ADGI), announced steady growth of its retail operations in Venezuela.

Global Transmedia has been experiencing a 60% monthly increase in revenues for its Venezuela operations. Utilizing in-country sales and marketing partnerships, Global expects this trend will continue throughout the year based on newly deregulated markets and current economic conditions. Global attributes this growth to the company's quality of service and the attractive rates offered to customers. Global believes its customer base will continue this expansion in part due to its competitive rates along with increasing services to other Latin American countries.

Global has entered into discussions with eClub de Venezuela, LLC, a Business to Business communications service provider currently servicing over forty multi-national business accounts in Venezuela. Global and eClub are working to define a combined business agreement that leverages the VoIP technologies and capabilities of both organizations to provide a strong in-country presence adding a wider array of products and services while reducing redundant operating infrastructure costs. Global believes the deregulation of Venezuela's telecommunications market will continue to unveil many new opportunities and continue to spur growth.

On another front, Global has announced it has commenced initial testing of its "ESP" "Enhanced Services Platform". Comprised of an integrated "Unified Messaging" suite of services, including Follow me, Find Me, Text to Voice and Fax Broadcasting. Customized IVR and unique personal dial-in numbers afford Global an opportunity to expand its product offerings in both domestic and international markets.

Dr. Jerrold Hinton, President of ADGI stated, "We feel the recent market changes in Venezuela and the addition of new product offerings will continue to have a positive influence on Global Transmedia's expansion capabilities and revenue growth. As Global continues its operational and technical expansion, we are pleased with the advancement of our management team and the mutually beneficial strategy in working with external consultants."

Jerrold R. Hinton, ADGI Chairman and CEO also announced that ADGI has recently filed an 8-K reporting 85M shares issued. The restricted shares were issued to the Global Transmedia shareholders at the end of the first year, instead of spreading the distribution over two years. As part of the change in distribution plan, the number of restricted shares issued was reduced to 85 million in lieu of 125 million shares as specified in the original share purchase agreement. The shares issued can be traded only subject to Section 144 ruling.

Dr. Hinton stated, "We are all part of a diverse and wide-spread base of shareholders, our officers, directors, employees and consultants along with the public, committed to and working for the continued growth of the company to share the rewards of success."

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.