American Technologies Group Signs $100,000-Per-Month Distribution Agreement With Hungarofek to Distribute The Force-R in Hungary.

MONROVIA, Calif.--(BUSINESS WIRE)--Jan. 19, 1999--American Technologies Group, Inc. (OTC BB: ATEG), announced today that it has signed a $100,000-per-month distribution agreement with Hungarofek, a Hungarian manufacturer and distributor of truck brake parts, granting Hungarofek exclusive rights to distribute The Force(R) automotive combustion product line in Hungary. Hungarofek, which supplies brake drums and linings to 80 percent of the over-the-road trucks in Hungary and its environs, has implemented a routine maintenance program for its clients that includes The Force.

Palatics Attila, president of Hungarofek, commented, "We believe that by carrying The Force, we have enhanced both the credibility and the allure of our product offerings. The Force enables us to offer our clients such immediate benefits as improved vehicle performance, reduced emissions and fuel savings, which is especially significant in Hungary, where fuel prices are about $4 per gallon.

"In addition to American Technologies' commitment to making innovative, quality products, we are also very impressed with the company's concern for the environment. Hungarofek shares American Technologies' desire to serve as an example of an environmentally responsible company, as well as its goal to make The Force a household name in Hungary by the end of 1999," Attila concluded.

Lawrence J. Brady, chairman and CEO of American Technologies, also commented, "Hungarofek is a successful, well-established company, and we look forward to a long, mutually-beneficial relationship with them.

Brady continued, "American Technologies has been expanding into many exciting, foreign markets in various parts of the world and building considerable sales momentum. We anticipate establishing a presence in many more locations as we continue our international sales and distribution efforts."

American Technologies Group 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, Vacuum Distillation water-purification technology and a high-energy particle beam. 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 is 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 based on its IE (tm) Crystals Technology used to improve fuel economy and, over time, reduce carbon deposits. For more information on American Technologies, visit the company's Web site at www.ateg.com.

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 to the Securities and Exchange Commission, including its Form 10-QSB and Form 10-KSB on file with the SEC.