American Ammunition Ships Additional 5.56 Rifle Ammunition to the United States Department of State.

MIAMI -- American Ammunition, Inc. (OTCBB:AAMI) announced today that it is shipping an additional 1,000,000 rounds of 5.56 rifle ammunition to the United States Department of State. This shipment is in addition to the shipment previously announced on November 21, 2005. This shipment was also made pursuant to an order under the multiyear federal contract with the U.S. Department of State. The balance of the contract in excess 4,000,000 rounds is anticipated to be shipped in 2006. The ammunition is destined for the Government of Colombia, its end user. All of the necessary permits and clearances were obtained prior to shipment.

"The shipment of this 5.56 rifle ammunition continues our effort to compete for governmental contract orders. In 2005 we have started to demonstrate our ability to deliver and will continue such effort more effectively in 2006. This area shows great growth potential." said Paul Goebel, National Sales and Marketing Director 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 2006 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.