American International Industries, Inc. Announces Record Revenues and Earnings for Quarter Ended September 30, 1998 and Key Financial Information.

KEMAH, Texas--(BUSINESS WIRE)--Oct. 30, 1998--American International Industries, Inc. (the "Company") (OTCBB: EDII) announced today its results of operations for the quarter ended September 30, 1998 and other financial information.

Net Income for the quarter ended September 30, 1998 was $251,500 on revenues of $4,606,500. For the nine months then ended a net loss of $125,000 on revenues of $5,781,000 was incurred. This compares to a loss of $606,000 on revenues of $1,876,000 for the comparable nine month period last year. The significant improvements in the third quarter and for 1998 are a direct result of the success of the Company's acquisitions completed over the past few months. Acqueren, Inc. and its wholly owned subsidiary, Northeastern Plastics, Inc. generated revenues of $3,936,000 and income of $320,000 since acquisition on June 30, 1998. The Company's other significant acquisition of Cinema Research Corporation was completed in late September 1998 and its revenues and profits will be recognized by the Company in the fourth quarter of 1998. These two acquisitions were recorded under the purchase method of accounting, thus operations of those companies prior to the date of acquisition are not yet reflected in these results.

At September 30, 1998 the total assets of the consolidated companies amounted to $19,890,000, shareholders' equity was $11,350,000 and working capital was $3,218,000. This compares to $4,558,000, $3,489,000, and $344,000 as of December 31, 1997. Assets increased by 436%, shareholders' equity by 325%, and working capital by 935% from December 31, 1997 to September 30, 1998.

Commenting on the results and the Company's financial position, Daniel Dror, Chairman, said "we are pleased with the progress we have made in completing the acquisitions of our subsidiaries, and in working with the management of those companies to increase revenues and profitability. We now have a management team in place committed to the continued growth and profitability of the companies. We appreciate the confidence our investors have placed in us during the transition to new management, especially since the Company has not been a reporting entity. We are working closely with our independent auditors, BDO Seidman, LLP, and our securities attorneys, Brewer & Pritchard, to finalize the filing of Form 10-SB with the SEC to bring the Company to fully reporting status. We expect the filing to be completed within a few days. The filing will be made using the EDGAR electronic filing system and thus the information will be available immediately to investors over the Internet."

EDII has five divisions: industrial, financial, oil and gas, real estate and media communications/entertainment. EDII, with its liquidity and financial expertise, assists its subsidiaries to build vertically each division in its own field.

This release may contain forward-looking statements that involve risks and uncertainties, including without limitation, continued acceptance of the company's products and services, increased levels of competition, new products and technological changes, the company's dependence on financing, third-party suppliers and intellectual property rights, and other risks detailed from time to time in the company's federal filings, annual reports, offering memorandum or prospectus.