American Ammunition Maintains Production Schedule after Hurricane Katrina.

MIAMI -- American Ammunition, Inc. (OTCBB:AAMI)- AAMI - announced today, in response to inquiries from shareholders and other interested parties, that it is maintaining its normal production without any interruption as a result of the Miami/Dade hurricane on Thursday, August 25 and Friday, August 26, 2005. Despite high winds, area flooding and related damage in the community, the AAMI facility was not damaged and its employees have been able to continue working and maintain production at normal pace. AAMI does not expect any reduction in production and sales as a result of the hurricane and related weather.

Andres Fernandez, President and CEO and Paul Goebel, Director of Marketing, both were pleased with company communication and employee morale, and that related production factors remained positive and uninterrupted. Each stated, "We are pleased that we are able to maintain our normal production schedule, uninterrupted, so that we can take new orders and fill orders that are already in line for production."

About American Ammunition, Inc. -- AAMI 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: 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.