American International Petroleum Names James E. Knight President, COO and Board Member.

Business Editors

NEW YORK--(BUSINESS WIRE)--Aug. 28, 2001

Oil And Gas Industry Veteran Brings Kazakhstan

Exploration and Development Experience

Denis J. Fitzpatrick, CFO, Promoted to Executive Vice

President, Appointed to Board

American International Petroleum Corporation announced today that, effective September 4, 2001, Mr. James E. Knight has been appointed president, chief operating officer and member of the board of directors.

It also announced that Denis J. Fitzpatrick, the Company's chief financial officer, has been promoted to executive vice president and appointed to the board of directors. Dr. George N. Faris will continue as the Company's chief executive officer until July 31, 2002, after which time Mr. Knight is expected, subject to board approval, to assume that role.

"We are very pleased that James Knight, an industry veteran with such a background of accomplishment and experience, has joined our Company," said Chairman of the Board Dr. George N. Faris. "Besides his extensive E&P experience in Kazakhstan, he brings over 30 years of industry experience in a variety of key management positions, domestic and international, ranging from technical to complete operational and profit and loss responsibilities. Under his leadership and proven track record to develop and tactically implement various growth strategies, we believe he will be able to enhance shareholder value."

Dr. Faris continued, "We are also very pleased that our Chief Financial Officer, Denis J. Fitzpatrick, has been promoted to executive vice president and appointed to the board of directors. Since joining the Company seven years ago, Denis has held the position of CFO, vice president and secretary, and for the past year has been acting chief operating officer. Denis has proven himself knowledgeable in all aspects of the Company's business, and has been a key executive in developing our growth strategies, especially for our refinery division. His knowledge, skills and 25 years experience in the oil and gas industry will continue to be an asset to our management team and the board."

Mr. Knight was formerly president and chief executive officer of First International Oil Corporation (FIOC), Houston, TX, where he was responsible for the company's business activities from 1998 to 2000. Employing over 300 people worldwide, the company's primary activities were focused on exploration and production in Kazakhstan. He successfully developed the company's first Kazakhstan oil field, reduced costs and raised the company's industry profile.

Prior to FIOC, Mr. Knight held various senior executive positions with Union Texas Petroleum Corporation (UTP), Houston, TX, from 1980-1998. In his last position as regional vice president, member of the executive committee and president of EMAC, a UTP operating unit encompassing Europe, the Middle East, Africa, Russia and Central Asia, he directed EMAC's oil and gas business that employed over 1,000 people worldwide.

Mr. Knight graduated from the University of Kentucky with a B.S., Mechanical Engineering in 1968, and received his MBA from the University of Houston, Houston, TX, in 1988.

American International Petroleum Kazakhstan, a wholly-owned subsidiary of the Company, owns two licenses in the Republic of Kazakhstan: Production License 1551, the Shagyryl-Shomyshty gas field, in which it has a 100% working interest, has technically proved reserves of 604 billion cubic feet of gas as previously reported, and exploration License 953, a 4.7 million acre exploration block, in which the Company has a 70% working interest.

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 the Republic of Kazakhstan, and in refining, marketing and transportation of its refined products in the United States.