American Ammunition Announces Additional Bank Debt Reduction in 2002.

Business Editors

MIAMI--(BUSINESS WIRE)--Dec. 30, 2002

American Ammunition, Inc. (OTCBB:AAMI) announced today it has reduced its bank indebtedness an additional $100,000.00. This latest payment is in addition to an earlier December reduction and represents total bank debt reduction in excess of 50% in calendar year 2002.

In addition to the debt reduction, AAMI recently completed its nationwide sales network throughout the continental United States as well as Alaska and Hawaii. These sales agencies complement and support additional increases in AAMI's fourth consecutive quarter of sales and revenue growth.

Andres Fernandez, President and CEO of AAMI stated: "We are excited at our ability to reduce outstanding debt. We are in a unique position that we can be price competitive because we don't have the high labor costs and some of the other high overhead of our competitors. Our substantial debt reduction in 2002 has been a positive factor. Our prospects for 2003 are excellent."

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 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.