American Ammunition Continues to Expand Dealer Direct Program.

MIAMI -- American Ammunition, Inc. (OTCBB:AAMI) announced today that the Dealer Direct Program sales continue to expand and at year end will announce definitive figures when such figures are available.

AAMI also announced that its launch of ECO-AMMO continues to out perform projections and this environmentally friendly "green ammo" is building a following in the market. The reduced lead pollutants plus the fact that the ammunition disintegrates upon impact continues to attract users.

Paul Goebel, Director of Marketing for AAMI, stated, "The combination of expansions in the Dealer Direct Program and other sales by AAMI such as ECO-AMMO is enabling us to meet our projections and expectations. It will be interesting at year end to tally all of the numbers and analyze our future course for sales."

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.