American Ammunition Renews Teaming Agreement with Israel Military Industries.

MIAMI -- American Ammunition, Inc. (OTCBB:AAMI) announced today that it had renewed its Teaming Agreement with Israel Military Industries Ltd. ("IMI"), effective on June 2, 2004. The purpose of the Teaming Agreement is to continue to utilize complimentary assets and resources each has with respect to the manufacture, marketing and supply of small arms ammunition to governmental and private customers in the United States and worldwide. AAMI and IMI agree to cooperate on a non-exclusive basis. The program is effective for an additional period of one (1) year.

IMI is a government owned company organized and existing under the laws of Israel having its principal office in Ramat, Hasharon, Israel and is engaged in the production of small arms ammunition utilizing technology and skills not currently utilized by AAMI.

Andres Fernandez, President and CEO of AAMI stated, "We are pleased that IMI has agreed to continue to work with us. IMI technology and workforce has made available and continues to make available added technology and skills that we are not in a position to presently acquire and work with. The continuation of this cooperative agreement will enable AAMI to extend and expand its markets with additional products and additional volume."

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.