American Ammunition Increases Product Lines.

MIAMI -- American Ammunition, Inc. (OTCBB:AAMU) announced today that it is increasing its product selections for the calendar year of 2007. The increase in the product lines effectively decreases the overall per unit cost of all products in the same product line. The addition of the three (3) new products (.30 carbine soft point, .223 match HP and 45-70 SP) is designed for users in the hunting market. AAMU selected these three (3) additional products in response to customer demand when purchasing from the 2006 product line. The new products are slated for production and shipment in the latter part of the fourth quarter of 2006.

"The added consumer demand for increases in and supplements to our product lines benefit us twofold. It increases our revenues and enables AAMU to increase its shelf space in its existing sales facilities. This twofold process enables us to fully support our dealer base," said Paul Goebel, National Sales and 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: 1-305-446-4800 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.