American International Industries, Inc. Entered into a Letter of Intent to Sell Its Subsidiary Delta Seaboard Well Service, Inc. for $48,000,000.

KEMAH, Texas -- American International Industries, Inc. (OTCBB:AMIN) Mr. Daniel Dror, Chairman and CEO, stated that the Company has entered into a non-binding letter of intent with CFO Resources, Inc., based in Houston, Texas, to purchase the Company's subsidiary Delta Seaboard Well Service, Inc. for $48,000,000 in cash. The Company owns 51% of Delta Seaboard and the other 49% is owned equally by Mr. Rob Derrick and Mr. Ron Burleigh, Delta Seaboard's executive officers. Delta Seaboard, based in Houston, Texas, has been in the energy drilling business for over 40 years. Due to great increase in demand for oil & gas services in the energy field, Delta Seaboard has experienced a substantial increase in revenues, profits and back log of orders. The letter of intent is subject to a 30-day due-diligence period, after which a $1,000,000 cash deposit will become non-refundable.

American International Industries, Inc. is a holding company. The Company has holdings in Industry, Finance and Real Estate in Houston, Texas and surrounding areas, and Oil & Gas interests in Texas and Louisiana. The vision of the Company is to develop holdings in various industries through acquisition of existing companies, applying the Company's financial resources and management expertise to foster the growth and profitability of the acquired businesses. The holding company serves as a financial and professional partner to the management of its subsidiaries. The role of the holding company is to improve each subsidiary's access to capital, achieve economies of scale by consolidating administrative functions, and utilize the financial and management expertise of the Company's corporate personnel across for each of its subsidiaries. The Company is continuing to work with management of the subsidiary companies to improve revenues, operations and profitability.

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The matters discussed in this release contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, that involve risks and uncertainties. All statements other than statements of historical information provided herein may be deemed to be forward-looking statements. Without limiting the foregoing, the words "believes", "anticipates", "plans", "expects" and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those that we may anticipate in each of our segments reflected by our subsidiaries' operations include without limitations, continued value of our real estate portfolio, the strength of the real estate market in Houston, Texas as a whole, continued acceptance of the Company's products and services, increased levels of competition, new products and technology changes, the dependence upon financing, third party suppliers and intellectual property rights, the rules of regulatory authorities and risks associated with any potential acquisitions. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis, judgment, belief or expectation only as of the date hereof.