updated 5/13/2011 5:45:53 PM ET 2011-05-13T21:45:53

HOUSTON and KEMAH, Texas, May 13, 2011 (GLOBE NEWSWIRE) -- American International Industries, Inc. (OTCBB:AMIN) (the "Company" or "American") reported revenues of $4,225,008 for the three months ended March 31, 2011, compared to $3,727,215 for the three months ended March 31, 2010, representing an increase of $497,793, or 13.4%.

During the three months ended March 31, 2011, Delta Seaboard International, Inc. ("Delta"), in which we hold a 46.4% shareholder interest, experienced an increase in revenues of $384,041 to $2,622,699 for the three months ended March 31, 2011, compared to $2,238,658 for the three months ended March 31, 2010. Pipe sales increased by $215,604 for the three months ended March 31, 2011, compared to the same period in the prior year. The cost of steel products decreased, allowing Delta to be more competitive in the pipe market. More pipe was sold to end-users, affording Delta larger pipe orders with higher margins.  Rig service revenues increased by $168,437 for the three months ended March 31, 2011, compared to the same period in the prior year. Rig service revenues have increased due to major maintenance on two rigs during 2010. Drilling activities have significantly increased during the three months ended March 31, 2011, compared to the same period in the prior year.

Revenues for Northeastern Plastics, Inc. ("NPI"), our wholly-owned subsidiary, during the three months ended March 31, 2011 were $1,601,859, compared to $1,488,557 for the three months ended March 31, 2011, representing an increase of $113,302, or 7.6%. NPI's revenues increased due to the addition of several new accounts and increased orders for existing accounts.

Cost of sales for the three months ended March 31, 2011 was $2,228,563, compared to $2,333,423 for the three months ended March 31, 2010. Our gross margins in 2011 were 47.3%, compared to gross margins of 37.4% in 2010. The increase in margins was primarily due to higher margins on pipe sales for Delta. Margins on pipe sales were 34% for the three months ended March 31, 2011, compared to 2% for the three months ended March 31, 2010. The increase in margins was due to the sale of high-priced pipe from inventory during the three months ended March 31, 2010.

Consolidated selling, general and administrative expenses for the three months ended March 31, 2011 were $2,952,444, compared to $3,112,802 in the prior year, representing a decrease of $160,358, or 5.2%, primarily due to a decrease in stock-based compensation. General and administrative expenses for the three months ended March 31, 2011 included non-cash stock-based compensation of $507,549, compared to $962,770 during the three months ended March 31, 2010, of which $847,750 was for the executive officers of Delta Seaboard in consideration for extending their employment agreements. This decrease in stock-based compensation was offset by increases in selling, general and administrative expenses incurred in support of higher revenues for NPI and Delta. Selling, general and administrative expenses for the three months ended March 31, 2011 included higher than normal legal costs related to the Botts lawsuit settlement and one-time costs incurred for Brenham Oil & Gas Corp. to become a public company.

Other expenses were $355,021 for the three months ended March 31, 2011, compared to other income of $650,197 for the three months ended March 31, 2010. Other expenses for the three months ended March 31, 2011 included non-cash unrealized losses on trading securities of $399,638. Interest expense was $119,354 during the three-month period ended March 31, 2011, compared to $126,825 during the same period in the prior year. Other income for the three months ended March 31, 2010 included the receipt of a $700,000 cash settlement for its claims in an insurance lawsuit.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") and excluding the noncontrolling interest and discontinued operations for the three months ended March 31, 2011 reflected a loss of $1,082,440, or $0.09 per share, compared to EBITDA from continuing operations and excluding the noncontrolling interest for the three months ended March 31, 2010, which reflected a loss of $477,533, or $0.05 per share. We had a net loss attributable to American of $1,378,950, or $0.12 per share, for the three months ended March 31, 2011, compared to a net loss of $1,104,409, or $0.12 per share, for the same period in 2010. Our net loss from continuing operations for the three months ended March 31, 2011 included interest expense, taxes, depreciation and amortization, loss from discontinued operations and income attributable to non-controlling interest of $119,354, $8,491, $109,255, $59,410 and $29, respectively. Our net loss for the three months ended March 31, 2010 included interest expense, taxes, depreciation and amortization, loss from discontinued operations and loss attributable to non-controlling interest of $126,825, $13,780, $121,121, $365,150 and $343,334, respectively.

For more detailed information, please refer to our March 31, 2011 Form 10-Q filing with the SEC, which was filed on May 13, 2011.

American International Industries, Inc. is a diversified holding company, with a business model similar to General Electric, Tyco International, and Berkshire Hathaway. The Company has holdings in Industry, Finance, and Real Estate in Houston, Texas and surrounding areas, and Oil & Gas. The vision of the Company is to develop holdings in various industries through acquisition of existing companies, applying the financial resources and management expertise to foster the growth and profitability of the acquired businesses. The holding company serves as a financial and professional partner to the management of the subsidiaries. The role of the holding company is to improve each subsidiary's access to capital, achieve economies of scale by consolidating administrative functions, and utilize the financial and management expertise of corporate personnel across all units. The Company is continuing to work with management of the subsidiary companies to improve revenues, operations and profitability.

Forward-looking Statement:

This press release may contain forward-looking statements, including information about management's view of the Company's future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act, and are subject to the safe harbor created by the Act. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. Factors that could cause actual results to differ materially from those that we may anticipate in each of our segments reflected by our subsidiaries' operations include, among others: continued value of our real estate portfolio; the strength of the real estate market in Houston, Texas as a whole; the ability to expand its interests in the energy sector; increased levels of competition; the dependence upon financing, the rules of regulatory authorities and risks associated with any potential acquisitions. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of the Company, its divisions and concepts to be materially different than those expressed or implied in such statements. These risk factors and others are included from time to time in documents the Company files with the Securities and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on the Company's future results. The forward-looking statements included in this press release are made only as of the date hereof. The Company cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, the Company undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by the Company.

CONTACT: Investor Relations:
         Rebekah Ruthstrom
         Tel: 281-334-9479
         email: amin@americanii.com

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