MIAMI, March 9, 2004 (PRIMEZONE) -- American Ammunition, Inc. (OTCBB:AAMI) AAMI announced today that its dealer customer base has increased by more than six hundred percent (600%) since the launch of its dealer direct program in January 2004. Paul Goebel, the Company's new National Sales Director stated, "There is steady growth in our customer base occurring daily. We expect this trend to continue for the foreseeable future as we earn dealer loyalty with our product quality and superior price terms."
The Company attributes this steady growth in customer base to the enhancement of its website to an e-commerce marketplace for online orders of small arms ammunition by dealers direct from the Company. It is also a result of the credit terms being offered to smaller dealers, who were traditionally forced to pay for product at the time of delivery. A two percent (2%) discount is awarded to those who make payment within thirty (30) days and free freight on all orders exceeding five hundred dollars ($500).
"These new incentives are geared toward attracting smaller dealers directly to the Company for their small arms ammunition needs. Credit terms are rarely offered to dealers of this size and free freight is unheard of," stated Andres Fernandez, AAMI's President and CEO. "We intend to revolutionize the way dealers purchase their ammunition. We offer better terms to more dealers on a great product. A strong loyal customer base is inevitable."
Preliminary results for 2003 indicate a 43% increase in total sales over the prior year and impressive fourth quarter results. In addition to the sales increase, AAMI has obtained several long-term contracts which should boost sales for 2004.
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.