American International Petroleum Appoints President and COO; Joe Michael McKinney Former President Of Enron Oil & Gas International.

NEW YORK--(BUSINESS WIRE)--July 29, 1999--

American International Petroleum Corporation (Nasdaq NMS: AIPN) today announced the appointment of Joe Michael McKinney as President and Chief Operating Officer, effective immediately.

Chairman and CEO Dr. George Faris said, "Joe Michael's management expertise and broad experience in the oil and gas industry make him uniquely qualified to lead the Company's future growth. He has played key roles in the successful development of oil and gas projects worldwide. As President and COO of Enron Oil & Gas International he spearheaded successful projects from exploration to production, typically ahead of schedule and under budget, in countries such as Trinidad, India and China."

Dr. Faris added, "We believe Joe Michael has the strategic vision, hands-on experience and leadership that will build shareholder value through the successful development of the Company's proven gas reserves and potential oil and gas reserves in Kazakhstan. His proven expertise in guiding development stage projects, similar in size and complexity to the 700 BCF Shagyrly-Shomyshty gas field in Kazakhstan, from exploration to production was key to his appointment. Joe Michael will have full operational control of the Company and all its subsidiaries."

McKinney stated, "The Company has tremendous opportunities in its Kazakhstan concessions as well as in the U.S. downstream refined products market. My efforts will focus on developing our substantial gas reserves as quickly and expeditiously as possible, and on taking advantage of our growing niche position in the refining area. I am looking forward to the challenge of maximizing the Company's international and domestic assets, and growing shareholder value. The Company has an excellent team in place, and I am excited about the Company's future."

Before joining the Company, McKinney served as President and COO of Enron Oil & Gas International, and has held senior management positions with Union Texas Petroleum, Superior Oil Co. and Exxon. McKinney has extensive project management experience in the U.S. as well as in Trinidad, India, China, Australia, France, Venezuela and Russia.

The Company's wholly owned subsidiary American International Petroleum Kazakhstan owns 100% interest in License No. 1551, the Shagyryl-Shomyshty field which the Kazak government estimates has proven gas reserves of 700 billion cubic feet, and a 70% working interest in License No. 953, that is independently estimated to have a potential of about 2.3 billion barrels of recoverable oil equivalent.

American International Petroleum Corporation is a diversified petroleum company which, through various wholly owned subsidiaries, is involved in oil and gas exploration and development in Kazakhstan, and in refining, marketing and transportation of petroleum products in the United States.

Statements herein may be identified as forward-looking for purposes of safe harbor provisions under Section 21E of the SEC Act of 1934. Such statements relating to the Company's future business are subject to risks and uncertainties that could cause actual results to differ materially from those statements, and other risks and factors, identified in the Company's SEC filings.