MIAMI, Oct. 29, 2003 (PRIMEZONE) -- American Ammunition, Inc. (OTCBB:AAMI) announced today that it has launched its new Dealer Direct Program. This new program will allow individual dealers to purchase directly from the manufacturer -- AAMI. Over 66,000 dealers can benefit from lower costs by purchasing directly, thus allowing them to pass savings on to the consumer. The timing of this program coincides with the substantial increase in AAMI's Product Line. AAMI will now offer 33 standard products of handgun and rifle ammunition including Reduced Hazard, Military Grade, and Large Bore munitions for its shooting enthusiast, law enforcement, and government clients. A mass mailing to all dealers is planned for the near future which will detail costs and policies.
Over the last six (6) months, AAMI has been awarded three (3) separate federal government contracts. The maximum quantities specified in these contracts would generate in excess of $59,000,000 over the next five (5) years. This is in addition to private label contracts and AAMI's commercial product sales.
"This direct sales program to dealers dramatically increases our customer base. This program coupled with the increase in government sales and export orders has positioned AAMI for long-term growth and stability. We expect our newly expanded product line to be well received, and expect strong growth in the commercial, law enforcement, and government sectors," said Andres Fernandez, President and CEO of AAMI.
Revenues of the Company tripled between 2001 and 2002 and were $200,000 higher at June 30, 2003 as compared to June 30, 2002. "With the new increased product line being marketed directly to dealers, we can expect continued growth in 2004," said Andres Fernandez.
About American Ammunition, Inc. -- AAMI is an autonomous manufacturer of ammunition, with the technology and equipment to take advantage of the growing market. It has an excellent reputation within the industry. The ammunition industry has experienced a 28% average increase in revenues annually between 1991 through 1998, and the trend is expected to continue through the year 2005 and beyond. For further product information, please call 1-305-835-7400 or visit the website at: http://www.a-merc.com For Investor Relations information, please call: 1-305-446-4800 or e-mail: CISintr@netscape.net.
This release contains statements that constitute forward-looking statements. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.