Advanced Materials Group Raises $500,000 in Private Placement.

Business Editors

RANCHO DOMINGUEZ, Calif.--(BUSINESS WIRE)--Jan. 23, 2004

Advanced Materials Group, Inc. (OTCBB:ADMG) announced today that it has completed an equity private placement, raising $500,000. The private placement involved approximately 1,219,000 shares of the Company's common stock at a price of $0.41 per share. The shares were sold to parties close to the Company, including its Chairman and its CEO, who were already major shareholders. There was no agent for the transaction.

The Company says it intends to use the funding to retire certain debentures that are currently maturing and for general corporate purposes.

Some statements contained in this press release are forward-looking statements with respect to our plans and objectives, such as our ability to use the proceeds from the sale to improve domestic operations. Those statements include statements regarding our intent, belief, or current expectations, as well as the assumptions on which such statements are based. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those contemplated by such forward-looking statements. In addition to the factors discussed, the following are among other factors that could cause actual results to differ materially: general business conditions, competitive factors, concentration of sales in markets and customers, concentration of raw materials suppliers, delays or cancellations in orders, fluctuations in margins, timing of significant orders, and other risks and uncertainties outlined by management in the Company's most recent Form 10-K.

Advanced Materials Group, Inc. is a leading manufacturer and fabricator of specialty foams, foils, films and pressure-sensitive adhesive components for a broad base of customers in the computer, medical, automotive and aerospace industries.