American Ammunition Receives 1 Million Round Order under Multiyear Federal Contract.

MIAMI -- American Ammunition, Inc. (OTCBB:AAMI) announced today that it received an order for 1,000,000 rounds of military grade 5.56 rifle ammunition under the multiyear federal contract with the United States Department of State. Delivery is to be made before the end of the year. This ammunition is destined for the Government of Colombia, its end-user.

"We are very pleased that we are receiving additional orders under this contract. AAMI is in a position to fill any and all orders under this contract. This contract along with others is significantly increasing our sales exports and will keep our business healthy," said Andres Fernandez, President and CEO of American Ammunition, Inc.

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.