American Ammunition Adds New Items to Product Line.

MIAMI -- American Ammunition, Inc. (OTCBB:AAMI) announced today that it is adding seven (7) new products to its existing product line. The new products include expansion into rounds for 357 Magnum, 44 Magnum and 45 Colt. The Quik-Shok hollow point line is being expanded to include rounds for a 38 Special, 357 Magnum in a 125 grain bullet and 44 Special, and 44 Magnum in a 240 grain bullet.

"We are proud to bring new items to our dealers. With the expansion into 357 Magnum, 44 Magnum and 45 Colt this will round off our product selection. 357 and 44 caliber ammunition is being offered in our C3 family as great target cartridges and the 45 Colt allows us to get into the niche cowboy action market. The production of these new cartridges also gives us an opportunity to release new items in our Quik-Shok hollow point line. We are bringing out a 38 Special and 357 Magnum round in a 125 grain bullet and 44 Special and 44 Magnum round in a 240 grain bullet," said Paul Goebel, National Sales Director. "These products will be displayed at the Shot Show in Las Vegas this month."

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: 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.