American International Petroleum Reports 1998 Year-End Results.

NEW YORK--(BUSINESS WIRE)--April 1, 1999--American International Petroleum Corporation (Nasdaq NMS:AIPN) today reported revenues of $11,854,606 for the year ended Dec. 31, 1998 compared with $827,964 for 1997.

The 1998 net loss was $9,103,113, including non-cash items of $4,570,000, or $.17 per share, compared to a loss of $17,953,621, or $.43 per share, for 1997. Weighted average shares outstanding were 53,741,498 for 1998.

Chairman and CEO Dr. George Faris said, "The Company's revenue growth for 1998 reflects the increased productivity of our refinery operations and marketing in the Gulf Coast and lower Mississippi River. Operating results were negatively impacted by significant additional costs incurred during an extensive period of testing at the refinery which is now completed. This year we anticipate revenues and margins to improve due to the refinery operating at higher levels of capacity and efficiency, implementation of new marketing initiatives and strategies and anticipated shortages of asphalt during the upcoming season. We now have a backlog that is significantly higher than last year at this time."

"Our barge will be operational in April which will facilitate lower cost deliveries of our refined products to the Company's St. Marks distribution terminal in Florida, and expedite delivery to customers. We will also charter the barge to third parties when not being utilized by the Company," Dr. Faris stated.

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 refined 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.

              AMERICAN INTERNATIONAL PETROLEUM CORPORATION
                   STATEMENT OF CONSOLIDATED INCOME

                                       Year Ended Dec. 31
                                      1998              1997
                                 ---------------------------------

Revenues                          $11,854,606         $827,964
Net Loss                         ($9,103,113)    ($17,953,621)
Loss per share                         ($.17)           ($.43)
Weighed ave. shares outstanding    53,741,498       41,309,102