American Ammunition Adds Canadian Distributor.

MIAMI -- American Ammunition, Inc. (OTCBB:AAMI) announced today the receipt of an order from its second Canadian Distributor. The initial export order is for 194,500 rounds of mixed calibers of ammunition. AAMI products have been approved by the Canadian government for import and all such orders is subject to United States Department of State export approval. The Department of State approval is expected.

Paul Goebel, Director of Sales and Marketing of AAMI stated, "We are excited to see the sustained trend of growth in our export business. It demonstrates AAMI's continued and steadied development of sales and marketing opportunities in the world market."

About American Ammunition, Inc. - AAMI is an autonomous manufacturer of ammunition, with the technology and equipment to take advantage of the growing market. It has an excellent reputation within the industry. The ammunition industry has experienced a 28% average increase in revenues annually between 1991 through 1998, and the trend is expected to continue through the year 2005 and beyond. For further product information, please call 1-305-835-7400 or visit the website at: http://www.a-merc.com. For Investor Relations information, please call: 1-305-446-4800 or e-mail: [e-mail].

This release contains statements that constitute forward-looking statements. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.