American Ammunition Responds to Recent Ammunition Supply News.

MIAMI -- American Ammunition, Inc. (OTCBB:AAMU) responded today to recent AP and other news that ammunitions demand is high nationwide, but supply is short.

According to AP Writer Mike Wilson in an article that appeared Monday, May 21, 2007 on Yahoo! News, "Ammunition shipments to local gun shops and police departments are being delayed for months because the Army has more than tripled its demand for small caliber ammunition."

President and CEO of American Ammunition, Inc. Andres Fernandez said, "Over the past few years, a number of key growth catalysts have occurred across the small caliber ammunitions industry as a whole, particularly developments in the Defense Department and the defense sector overall."

Fernandez continued, "As a small caliber ammunitions manufacturer with a direct to dealer distribution strategy, we have been poised for some time to handle this expected growth industry wide. Toward that end, recent initiatives have ensured that our more specialized, highest margin products are readily available to supply existing and on-going demand."

Also according to the Yahoo! News article, "The Army's demand for small caliber ammunition has soared from 426 million rounds in 2001 to 1.5 billion rounds in 2006."

Full text of the article mentioned in this press release can be viewed at: http://news.yahoo.com/s/ap/20070521/ap_on_bi_ge/ammunition_supply.

About American Ammunition, Inc.

AAMU 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 2006 and beyond. For further product information, please call 1-305-835-7400 or visit: www.a-merc.com.

For Investor Relations information, please call: 1-561-514-0194 or email [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.