American Technologies Group Reports Fiscal 1998 Results.

MONROVIA, CA--(BUSINESS WIRE)--Nov. 13, 1998--American Technologies Group, Inc. (OTC Bulletin Board: ATEG), today reported results for the fiscal year ended July 31, 1998.

Revenue for the 1998 fiscal year was $917,000, compared with $2,616,000 for the prior year. The company reported a net loss attributable to common stockholders of $9,440,000 for fiscal 1998, or 43 cents per share on 21,922,748 weighted average shares outstanding, versus a net loss attributable to common stockholders of $9,637,000, or 52 cents per share on 18,640,000 weighted average shares outstanding for fiscal 1997.

Lawrence J. Brady, chairman and CEO of ATG, commented, "Although it is not yet evident from our results, we made tremendous progress during fiscal 1998. Our decision to refocus on our core technologies resulted in a number of outstanding opportunities.

"American Technologies now produces more than just concepts. Twenty-first Century Global Network, the marketing venture in which we are a one-third partner, began distributing 16 personal- and household-care products in fiscal 1998. We also reached a manufacturing agreement for our proprietary water distiller with one of Taiwan's largest small home-appliance manufacturers. We signed an agreement with China's largest power company allowing them to test our IE(tm) Crystal Technology. We developed a safe and effective bulk-fuel additive. The Force(R), our airborne fuel additive, won the approval of Japan's Environmental Purification Association for its ability to reduce pollutants from automobiles and trucks. We formed a strategic marketing alliance with Comtrad Industries, one of the nation's leading direct-response marketers, to offer a deluxe car kit consisting of six of our proprietary automotive products. And most recently, an agreement was reached with one of New Zealand's largest car dealership chains to distribute The Force to its 75 New Zealand dealerships.

"We expect these achievements to result in significantly higher revenue for fiscal 1999, and lead to larger, more meaningful business opportunities as we become more established. American Technologies' management has worked diligently to re-create the company and plans to continue conducting its business with its focus keen on its core technologies, ever-mindful of its shareholders' best interests."

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 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. A line of all-natural household-cleaning and personal-care products containing the company's IE (tm) Crystals Technology are currently marketed by 21st Century Global Network, LLC, a joint venture partially-owned by American Technologies. The company also sells The Force(R), an environmentally safe automotive combustion product. For more information on American Technologies, visit the company's Web site at www.ateg.com. This press release contains certain forward-looking statements which are subject to change. The actual results may differ materially from those described in any forward-looking statements. Additional information concerning potential factors that could affect the company's financial results are included in the company's Form 10-K for the year ended July 31, 1997. -0-

AMERICAN TECHNOLOGIES GROUP, INC.
Financial Highlights (Unaudited)

                                          For the Year Ended
                                   7/31/98                    7/31/97

Total Revenue                      $917,000                $2,616,000

Total costs and expenses         10,269,000                10,324,000

Loss before income tax and
  discounted operations          (9,352,000)               (7,708,000)

Benefit for income taxes            488,000                   597,000

Discounted operations              (576,000)               (1,669,000)

Net income (loss)                (9,440,000)               (9,637,000)

Accreted dividends                      --                   (857,000)

Net loss attributable
 to common stockholders          (9,440,000)               (9,637,000)

Earnings (loss) per share             ($.43)                    ($.52)

Weighted average number of
  common shares outstanding       21,922,748                18,640,000