American International Industries, Inc. (Nasdaq:AMIN) Mr. Daniel Dror, Chairman and CEO, today announced that the Company has entered into a non-binding letter of intent to purchase 100% of Shumate Machine Works Corporation ("SMW"), a subsidiary of Shumate Industries, Inc. (OTCBB:SHMT), for approximately $6.7 million, including $1.7 million of assumed liabilities. The closing of the proposed transaction is expected to occur before July 30, 2008, subject to certain conditions related to the proposed purchase price, the receipt of all third party consents, and the approval of the shareholders of Shumate Industries, Inc.

Shumate Machine Works manufactures highly specialized equipment for energy industry customers including Baker Hughes, Halliburton Energy Services, Smith International, National Oil Well Varco, BJ Services Company, Canrig Drilling Technology, a Nabors Industries company, Enventure Global Technologies, FMC Technologies, Oceaneering Intervention Engineering, Shell Development, Weatherford International and other energy related companies.

SMW produces complex assemblies, including expandable tubing technology products that are used in field service operations for oil and gas exploration under extreme environmental conditions. SMW manufactures large-diameter products and close tolerance machined parts that range up to thirty-four feet in length using state of the art, large part CNC equipment. SMW will continue to manufacture components for Hemiwedge Valve Corporation, the remaining subsidiary of Shumate Industries, Inc. after the purchase, which is developing and commercializing proprietary new valve product lines.

Mr. Dror stated, "SMW will continue its strategic alliance with Hemiwedge(r) to support its significant anticipated growth. Additionally, the Company expects benefits from synergies between SMW and our subsidiaries, Delta Seaboard Well Service, Inc. and Hammonds Industries, Inc."

SMW, which operates out of a 30,000 square foot manufacturing facility located in Conroe, Texas, had approximately $8 million in revenues and EBITDA adjusted for non-recurring expenses of $1.4 million for the year ended December 31, 2007. With the additional capital investment that we will provide, SMW expects to substantially increase future revenues and profits.

Larry Shumate, President of Shumate Machine Works, stated, "I am pleased with the financial and management expertise that American International Industries will bring to SMW and look forward to working with their management team to facilitate SMW's future growth."

About American International Industries, Inc.

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. For additional information on American International Industries, Inc. and its products, please visit http://www.americanii.com.

About Shumate Industries, Inc.

Shumate Industries, Inc. is a Texas-based energy field services company that incorporates new technologies to bring products to market leveraging its existing infrastructure, expertise and customer channels. The Company operates through two wholly owned subsidiaries: 1.) Shumate Machine Works, a contract machining and manufacturing division focused in oilfield tubular products, and 2.) Hemiwedge Valve Corporation, a proprietary new valve technology division. The Hemiwedge division commercialized its Hemiwedge(r) Cartridge valve product line targeting oil, gas, process and power markets in early 2007 and is in prototype development of its Hemiwedge(r) sub-sea high pressure valve product line and a Hemiwedge(r) down-hole valve product line which it intends to commercialize via corporate partners.


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