Delta Seaboard Well Service Acquires Four Rigs

American International Industries (AMIN) has entered into a definitive agreement with Alameda Inc. for the purchase of four operating drilling rigs at a cost of $5,000,000. As consideration for the rigs, AMIN will issue to Alameda 400,000 convertible preferred shares convertible into common shares of AMIN at a price of $10.00 per share over a period of five years for a total conversion of 400,000 common shares of AMIN. Any conversion and sale of the preferred shares into common shares of AMIN will be restricted under Rule 144. These rigs have been appraised at $8,200,000. The rigs are being purchased as an opportunity to substantially increase revenues and potential profits for Delta, a majority owned subsidiary to be of AMIN. Delta's revenue for 2002 was approximately $14,000,000 and the first eight months of this year are profitable. The daily revenues Delta could derive from these Rigs could be as much as $30,000 to $40,000 per day. AMIN previously announced that it has entered into a final and definitive agreement with Delta for the acquisition of 51% of Delta.

The ownership by AMIN and Delta of certain drilling and completion rigs as well as other equipment owned by Delta will allow Delta to expand its operations and conservatively venture into the oil and gas exploration area. Daniel Dror, Chairman & C.E.O. stated, "It is our opinion that the timing is right for the purchase of operating companies in the oil and gas exploration and the energy services field." Delta will use the four rigs, in addition to its other rigs and barges, for its backlog of orders and increase its capacity for drilling wells as deep as 12,000 feet. Presently there is a great demand for these services. With the price of oil above $30 per barrel and natural gas price of approximately $5 per MCF, the demand for drilling rigs has increased substantially over the past few months. AMIN and Delta are currently looking to acquire additional companies in the energy and alternate energy fields.

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