American Ammunition Expands 2007 Domestic Market.

MIAMI -- American Ammunition, Inc. (OTCBB:AAMU) announced today that it is finalizing its product line for 2007 and as a result has increased its product selection by adding more items. The additional items are based upon its analysis of niche markets not adequately served by competitors, focusing on the cowboy action shooting market. AAMU will add new offerings of 44-40 and 38-40 calibers. AAMU currently offers its .32 H&R Magnum, .380 auto, 9mm, 38 Super, .38 Special, 357 Magnum, .44 Special and .44 Magnum in this market. The new items will continue to fill a market void.

This addition and consolidation of its products is in addition to its previously announced expansion of its ECCO-AMMO[TM] line of products, which provides a lead-free projectile with reduced lead pollutants sometimes referred to as "green" ammo. This ammunition is ideal for indoor ranges since it disintegrates upon impact and therefore does not ricochet.

"We continue to evaluate consumer demand for market need and intend to supplement our product lines on an ongoing basis as a means of increasing revenues and profits. The added product lines also enable us to increase shelf space in existing sales facilities thereby enabling us to fully support our dealer base," said Paul Goebel, National Marketing Director of American Ammunition, Inc.

About American Ammunition, Inc. - AAMU 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 2006 and beyond. For further product information, please call 1-305-835-7400 or visit the website at: www.a-merc.com For Investor Relations information, please call: 1-561-514-0194.

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.