ADGI and Telecommunications Company Sign Letter of Intent.

Business Editors

NEW YORK--(BUSINESS WIRE)--July 2, 2001

American Diversified Group, Inc. (OTCBB:ADGI) announced today that it has entered into an agreement in principle with Global VoIP, Inc. ("Global V"), a privately held telecommunications company, for the development of networks and participation in national PTT agreements with several Pacific rim countries. The agreement calls for an immediate payment of $500,000 to ADGI's wholly-owned subsidiary Global Transmedia Communications Corporation ("GTCC"), as subcontractor for performance of Global V's obligation to provide access to a Mexican telecommunications network to IP World Limited ("IPW"), an Australian public telecommunications company. The overall definitive agreement will call for an additional $2.5 million in contracting for GTCC to build-out 5 additional networks and the assignment to GTCC of 3 PTT contracts with Pacific rim countries. The agreement in principle also contemplates a business combination in which Global V would be merged into ADGI or would become its wholly-owned subsidiary.

Dr. Jerrold Hinton, Chairman and C.E.O. of ADGI announced, "It is a pleasure for me and all the officers and employees of ADGI to announce the first major business development since we promised the shareholders a month ago that our company would begin explosive growth. We wanted to initiate the credibility on that promise as quickly as possible. Today's agreement is the culmination of a year's worth of work with Global V and was finalized during our meetings in Spain and Australia. Almost a year ago, one of the principal's of Global V made a $500,000 investment in ADGI. They have watched us grow and today they have made a major commitment in principle to us to greatly expand the relationship."

Dr. Hinton explained, "Under the definitive agreement, GTCC will construct five (5) new networks. GTCC is being paid $500,000 per network and will retain a 75% ownership in each network with Global V owning 25%. It is planned for each new network to begin construction about every 45 days with completion of the plan within the first quarter, 2002."

Ms. Vivian Manevich, President of GTCC stated, "The construction and implementation schedule for each network fits the second phase of our development plans. It allows us adequate time required to construct, test and begin the ramp-up of calling traffic within a realistic time frame. It is anticipated that significant revenues from each new network will begin immediately after each ramp-up period. The PTT agreements give us the opportunity to significantly extend our operations into the Far East allowing us to terminate and originate significant amounts of calling traffic."

In addition to the PTT agreements, Global V has arranged for ADGI to receive equity ownership in IPW which would result in ADGI becoming a controlling shareholder.

A business combination with Global V is contemplated by the letter of intent and the result would be for the present shareholders of Global V becoming the majority holders of ADGI. Except for the initial $500,000 payment, the transactions contemplated by the letter of intent are subject to the parties' signing definitive documents that are expected to be executed before the middle of this month.

Dr. Hinton stated, "Several more announcements will be forthcoming shortly detailing the arrangements covered by this agreement. The first of these networks will begin early in the third quarter and we anticipate significant revenues beginning in July and increasing throughout the third and fourth quarters."

About ADGI

ADGI is a fully reporting public company with all filings current with the Securities and Exchange Commission.

About Global Transmedia

Global Transmedia, a wholly owned subsidiary of ADGI, is a facilities-based international telecommunications company. Its core competency is providing VoIP networks for international call origination, termination, voice and data transport. Global presently has personnel in New York, Miami, St. Louis, and San Antonio. They also have local partner operations and networks in Mexico, Venezuela and Colombia with negotiations pending and in process in other Central and South American countries, and in the Far East.

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-WorldCom, Sprint and other major carriers currently enjoy.

American Diversified Group, Inc. Executive Offices: 110 N. Center St., Suite 202, Hickory, NC 28601 828/322-2044, 828/22-3798 (fax), e-mail: [e-mail] Contact: Jerrold R. Hinton, Ph.D., President/CEO

Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Placement Act of 1995. The words "forecast", "project", "intend", "expect", "should", "would", and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (finance or operating) or achievements to differ from future results, performance (financing and operating) or achievements expressed or implied by such forward-looking statements. The above are more fully discussed in the Company's SEC filings.