American Ammunition Receives Order for Reduced Hazard ECO-AMMO(TM).

MIAMI -- American Ammunition, Inc. (OTCBB:AAMI) AAMI announced today that it has received a 2,000,000 round order for its line of ECO-AMMO(TM). The order was received under an existing federal contract, and is for 40S&W caliber ammunition.

AAMI started manufacturing and distributing ECO-AMMO in 2004. It is a lead free projectile with reduced lead pollutants sometimes referred to as "green" ammo. ECO-AMMO is ideal for indoor ranges since it disintegrates upon impact and therefore does not ricochet.

Paul Goebel, Director of Marketing for AAMI stated, "It is great to see the response to our premium line of ECO-AMMO. This is a substantial order and reinforces our belief that the offering of reduced hazard ammunition is a viable marketing strategy and serves to meet consumer demand."

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.