American Ammunition Receives 1.26 Million Round Multiyear Federal Contract Order.

Business Editors

MIAMI--(BUSINESS WIRE)--July 28, 2003

American Ammunition, Inc. (OTC Bulletin Board: AAMI) announced today that it received an order for 1,265,000 rounds of ammunition under the multiyear federal contract with the United States Department of State previously announced on July 7, 2003. Delivery is to be made on or before November 17, 2003 and the military-grade .223 rifle ammunition is destined for the Colombian National Police, its end-user.

"We are pleased that orders are being placed promptly under this recently awarded contract. AAMI is in the position to fill any and all orders under the 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.