American Technologies Group Develops Environmentally-Benign Bulk-Fuel Additive; Highly Effective and a Safer Alternative to MTBE.

MONROVIA, Calif.--(BUSINESS WIRE)--Aug. 24, 1998--American Technologies Group, Inc. (OTC Bulletin Board: ATEG), announced today that it has developed a less expensive, environmentally-benign replacement additive for Methyl tertiary Butyl Ether or Methyl tert Butyl Ether (MTBE) for use in bulk gasoline supplies.

MTBE is an oxygenate added to gasoline in high concentrations -- approximately 15 percent on a volumetric basis -- to increase octane levels and enhance combustion, thereby reducing emissions of carbon monoxide (CO) and other organic compounds. However, the use of MTBE in gasoline has created troubling environmental concerns, since it was recently discovered as a contaminant in drinking-water wells. In California, MTBE concentrations have exceeded state action levels for both "taste and odor" and "human health." In fact, the US Geological Survey has reported that MTBE is the second most common contaminant in shallow urban aquifers. Leaks from underground gasoline storage tanks, lines, fueling stations, and gasoline-powered recreational watercraft are known sources of introduction of MTBE into the environment. MTBE has also created health concerns. It has been shown to cause various types of cancer in mice and rats and is now considered a likely, if not probable, carcinogen. As a result of these problems, many authorities are demanding that MTBE no longer be permitted as a gasoline additive.

American Technologies' additive is available in liquid form for bulk fuel applications and as a "power pack" in The Force(R), the company's airborne combustion product. The additive has been shown to produce comparable benefits to MTBE, without the negative environmental consequences. In recently-completed testing by the Japanese Automotive Transportation Technical Association, it was shown that American Technologies' additive reduced emissions of not only CO, but hydrocarbons and nitrous oxide as well. Moreover, testing at Southwest Research Institute revealed an 11 percent reduction in carbon in the combustion chamber of an engine from use of the additive. Earlier testing at UCLA by Professor Selim Senkan showed similar results.

Claude Travis & Associates performed SAE (Society of Automotive Engineers) testing and concluded that adding American Technologies' additive to the fuel of the test vehicle "resulted in significant fuel savings and fuel-economy improvement. The improved combustion required to produce the increased fuel economy also translates in[to] considerably less air pollution."

Lawrence J. Brady, president and CEO of American Technologies, commented, "We believe that our fuel additive is a viable alternative to MTBE. For only a fraction of the cost of MTBE, it offers impressive reductions in carbon monoxide, hydrocarbon and nitrous oxide emissions, improves fuel efficiency and automotive performance and presents none of the environmental risks or health concerns of MTBE. We are proud to have created such a responsible product that is oriented to improving the environment, fuel efficiency and vehicle performance and, in addition, is capable of putting an end to the environmental, political and economic problems created by the use of MTBE."

American Technologies is an advanced science and technology company engaged in the development, commercialization and sale of products and systems using its patented and proprietary technologies. Its core technologies are: The Baser(TM) High Energy Particle Beam Technology, The IE(TM) Crystals Technology and Vacuum Distillation Technology. These technologies have numerous applications in the nuclear, energy, medical, chemical, mining, oil, personal and home care industries. Initial shipments of a new line of all-natural household cleaning and personal care products containing the company's IE(TM) Crystals Technology were made last month by 21st Century Global Network, LLC, a joint venture partially-owned by American Technologies. The company also sells The Force(TM), an environmentally-safe automotive combustion product based on its IE(TM) Crystals Technology used to improve fuel economy and, over time, reduce carbon deposits.

Matters discussed in this release include forward-looking statements that involve risks and uncertainties, and actual results may be materially different. Factors that could cause actual results to differ include activity levels in the securities markets and other risk factors disclosed in the company's reports the Securities and Exchange Commission, including its Form 10-QSB and Form 10-KSB on file with the SEC.

    CONTACT:  Porter, LeVay & Rose Inc., New York
               Jeffrey T. O'Keefe, Account Supervisor
               Debra Potter, Senior Editor
               Elisa Keys, VP-Media Relations
               212/564-4700