American Ammunition Expands ECO-AMMO(TM) Line.

MIAMI -- American Ammunition, Inc. (OTCBB:AAMU) announced today that it has added 7.62mmx39mm rifle ammo to expand its ECO-AMMO[TM] line of products. ECO-AMMO[TM] is a lead free projectile with reduced lead pollutants sometimes referred to as "green" ammo. ECO-AMMO[TM] is ideal for indoor ranges since it disintegrates upon impact and therefore no ricochets. AAMU has been acquiring and developing technology to market this environmental-friendly ammunition for some time.

"There is an enormous number of weapons chambered for this caliber. These include AK-47 style guns. The majority of shooting enthusiasts are firing outdoors because of the limited types of munitions available. By providing this round in a frangible projectile, shooting enthusiasts will be able to enjoy their shooting experience year-round in indoor facilities," said Andres Fernandez, President of American Ammunition.

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.