COAM Announces Spin-Off; Stockholder Dividend.

TAMPA, Fla. -- Consolidated American Industries Corporation ("COAM") (Pink Sheets:CMDJ) today announced the spin-off of its wholly owned subsidiary Consolidated American Resource Development Corp. ("CRDC"). Shareholders of COAM shall each receive one share of CRDC for each five shares (1:5) of COAM held as of April 27, 2006.

Consolidated American Resource Development Corp. ("CRDC") is a wholly owned Nevada corporation, involved in the natural resource industry. CRDC's primary assets include: (a) deeded and patented mineral claims of the Iron Creek Copper/Cobalt Mine located in Lemhi County, Idaho; (b) deeded and patented mineral claims of the GreyEagle Open Pit Copper/Gold Mine located in Siskiyou County, California; and (c) 1,000 acres of deeded perpetual mineral rights located in the oil and gas district of Orange County, California. Hanna, Noranda and Cominco conducted drilling program studies on the Iron Creek Property. That deeded property includes approximately 29,030,000 tons of drilled and proven reserves having ore grades 0.06% Cobalt, 0.52% Copper, and an undisclosed Gold. Based upon the studies and price index, current estimated value is approximately $40.00 per ton.

James S. Renaldo, President & CEO of COAM, stated, "It is the responsibility of Management to improve our shareholders equity position in their corporation. We have determined that the separation of CRDC from COAM will enhance the success of each company, and thus provide greater equity to our shareholders."

Consolidated American Industries Corporation, a Nevada corporation, with principal offices located in Tampa, Florida, is a public holding company involved in the manufacturing, natural resource, and financial services business segments, including real estate lending, management, and development activities. COAM's primary operating subsidies are: SIG Mortgage Company of Florida, Inc.; Century Container Corporation; Fusion Real Estate Corporation; SIG Wholesale Distribution, Inc.; McNulty First Lending, Inc.; Consolidated American Resource Development Corp.; and Carbon Race Italia, S.p.A.

Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as "anticipate", "believe", "estimate", "expect", "intend" and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors such as the level of business and consumer spending, the amount of sales of the Company's products, the competitive environment within the industry, the ability of the Company to continue to expand its operations, the level of costs incurred in connection with the Company's expansion efforts, economic conditions in the industry and the financial strength of the Company's customers and suppliers. The Company does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.