American Ammunition Forming Second Shift To Meet Increasing Demand.

Business Editors

MIAMI--(BUSINESS WIRE)--Aug. 8, 2002

American Ammunition, Inc. (OTCBB:AAMI), announced today that it is has formed a second shift to meet increasing demand, including demand for the newly introduced .223 caliber line as well as its other product lines. AAMI has already employed and trained more than fifty percent (50%) of the workers needed to complete the second production line. The decision to increase the number of production workers was undertaken based on recent demands exceeding current production levels.

Added production also increases use of its new state of the art chemical processing facility "unveiled" on June 19, 2002. The chemical treatment facility enables AAMI to meet its growing chemical processing needs for its various projectiles. This new addition is expected to reduce the cost of such chemical processing work approximately fifty percent (50%).

AAMI is currently operating to fill back orders for its .223 caliber line based on increased demand for the product.

Andres Fernandez, President and CEO of AAMI stated "a lot has changed at our Company in the past twelve (12) months and we are extremely pleased with our progress. We are fortunate to have loyal, hardworking employees that share our goals and we are pleased to be able to add additional employees with similar goals to complement our production needs. Our increase in sales along with our significant cost reductions are in large part due to the dedication of our employees and should assure the future growth of the Company."

About American Ammunition Inc.- American Ammunition 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 toll free: 1-800-288-7499 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.