American Ammunition Files Patent Application for Bullet That Will Not Pierce Aircraft Fuselage.

Business Editors

MIAMI--(BUSINESS WIRE)--Oct. 31, 2001

American Ammunition, Inc. (OTCBB:AAMI), announces it has been assigned a serial number (60/ 325,046) from the U.S. Patent and Trademark Office for its provisionalpatent application filed on September 26, 2001 for a bullet that will not pierce an aircraft fuselage but will penetrate human soft tissue. The product has been specifically designed for use inside the cabin of a commercial aircraft, with additional applications such as nuclear power plants, hazardous materials storage facilities, and home defense.

American Ammunition has departed completely from standard ballistics and designed this projectile to meet this growing and unfilled need. Two of the basic design criteria in ballistics are penetration and expansion of the projectile. These two factors have been controlled to meet the specific requirements of weapons discharged inside an aircraft cabin, while insuring fuselage integrity. This design is a new concept in close quarter ammunition: a bullet capable of incapacitating an assailant without terminally damaging surrounding structure.

Design and material selection allows for the inverted expansion and aft internal collapse of the projectile mass. Upon impact with the aircraft fuselage, the bullet (projectile) internally collapses; therefore not allowing for the transfer of kinetic energy forward or penetration above that required for soft tissue penetration. Testing has been successful in Jetliner and Commuter fuselages as well as successful testing into ordinance gelatin and bovine raw meat. This performance criterion is accomplished without sacrificing the standard velocity and accuracy of the caliber being used. A video of those tests can be viewed on the Company website in the New Product section, http://www.a-merc.com.

This development will contribute to the safety of pilots, Air Marshals and the traveling public.

American Ammunition has been invited to demonstrate its new ammunition at the Georgia Tactical Officers Association (GTOA) on November 2, 2001 at 10:00 a.m. at the Cobb County Police Department Training Center in Atlanta, GA. Police officers from across the State will attend the conference. For further information interested parties may contact Major O.T. Norton at the Georgia State Patrol. Phone Number: [phone]. Fax Number: [phone].

American Ammunition is an autonomous manufacturer of ammunition, with the technology and equipment to capitalize upon the growing defense and retail markets. 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.

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.