American Ammunition Announces 25% Increase In First Quarter Revenues.

Business Editors

MIAMI--(BUSINESS WIRE)--April 2, 2002

American Ammunition, Inc. (OTCBB:AAMI), announces it has had a 25% increase in first quarter revenues over the same period of 2001. This follows a prior announcement that sales increased over 100% for the same period in 2002 compared to the same period last year. The increase in revenues is an indication of the resurgence of the companies position in the market. Growth in sales and revenues is expected to continue throughout 2002. In the opinion of management the commercial ammunition market is extremely receptive to American Ammunition's aggressive pricing and the quality of its low cost munitions for the commercial market.

"This increase in revenues is a sign of our products acceptance throughout the commercial marketplace, and our companies ability to get the product to market. American Ammunition's aggressive pricing structure is putting our products at the forefront of the low cost munitions marketplace. The recent additions to our product line are adding to our presence in the market and is expected to consolidate the companies' position as the premier supplier of low cost munitions. Our program of increasing production capacity, cutting costs, and adding new products is preparing us to capture a greater portion of the market," stated Andres Fernandez, President and C.E.O. of American Ammunition, Inc.

About American Ammunition Inc.

American Ammunition 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 toll free: 1-800-288-7499 or e-mail: [e-mail]

This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended. 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.