American United Global Announces Signing of Definitive Share Exchange Agreement with Russian Oil and Gas Company.

KIRKLAND, Wash. -- American United Global, Inc. (Pink Sheets:AUGB) announced here today that both AUGB and Southern Gas Company ("Southern Gas"), a limited liability company incorporated in Russia and based in Moscow, have signed a definitive share exchange agreement.

Through its subsidiaries and affiliates Southern Gas owns 100% of a company that operates a 3.5 mile gas pipeline between Rostov, Russia and the Ukraine, 100% of a well extraction equipment supply company, and a minority interest in an extraction company in Russia. Southern Gas advises that it controls approximately 17.5 billion cubic meters of natural gas reserves and currently operates thirteen income producing gas wells and that annual revenues are approximately $35,000,000.

The share exchange agreement calls for a reverse acquisition under the terms of which AUGB will issue approximately 33.0 million shares of its common stock (to represent not less than 70% of the fully-diluted AUGB common stock) to the equity owners of Southern Gas in consideration for 100% of the equity in Southern Gas and subsidiaries. Upon the issuance of 33.0 million AUGB shares to the Southern Gas equity owners, the holders of AUGB securities prior to the transaction will effectively retain on the closing date not more than 14.0 million common shares on a fully diluted basis.

Consummation of the transaction is subject to a number of conditions, including:

--Southern Gas acquiring the balance of the ownership of the extraction company so that it will be the sole shareholder of that entity at the closing;

--completion of a satisfactory due diligence investigation by both parties;

--delivery of audited consolidated financial statements of Southern Gas for the two years ended December 31, 2003 and the nine months ended September 30, 2004;

--total debt and contingent liabilities of AUGB, excluding any liabilities that may be indemnified against in a manner satisfactory to Southern Gas, shall not exceed $100,000; and

--approval by the AUGB stockholders.

AUGB has re-applied to re-list its common stock on the Over the Counter Bulletin Board and anticipates that its common stock will resume trading there concurrent with the closing of this transaction.

Safe Harbor 

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks defined in this document and in statements filed from time to time with the Securities and Exchange Commission. All readers are encouraged to review the Form 8-K that has been filed in connection with the signing of the share exchange agreement discussed above and which will outline risk factors including deal terms and other relevant items. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the companies, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the companies disclaim any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.