SOURCE: American Green Group, Inc.

December 18, 2008 08:26 ET

AMNE and Paradigm Agree to Terms

NEW HAVEN, CT--(Marketwire - December 18, 2008) - American Green Group, Inc. (PINKSHEETS: AMNE) is pleased to announce that it has come to terms with Paradigm Polymers to allow the acquisition to be completed.

AMNE has agreed to purchase Paradigm for $500,000 in a combination of cash and stock. AMNE will pay $50,000 on or before January 15, 2009 and issue $450,000 worth of stock valued at $.50, with a provision that if the closing price of common stock of AMEN is not $.50 or higher on June 15, 2009 then AMNE shall issue additional shares to make up the difference.

Paradigm currently generates $1.5 million in revenue earning approximately 15%. Gary Gray has identified additional sales people that can help grow the sales of Paradigm to over $5 million in 2009. Currently Mr. Gray is the sole sales person for Paradigm. Each new sales person should generate an additional $1 million in sales. As the company sales increase so does its buying power therefore enabling the Company to increase its margins. Foam accounts for only 6% of the insulation market in the US with testing that proves foam is more durable, cost effective, and a better insulator the typical fiber glass Paradigm has plenty of room for growth.

AMNE expects to have the Purchase Agreement signed prior to the end of 2008 therefore allowing all sales of Paradigm to be recorded on the books of AMNE in 2009. AMNE will be restating its financials to reflect the rescission of AES basically showing no operations for fiscal 2008. AMNE will audit 2008 and prepare quarterly reports for 2009 in an anticipation of auditing 2009 there by allowing it to file a Form 10 and move up to the OTCBB in 2010.

AMNE is aware that it needs to amend the list of officers and directors with the State of Nevada and plans to file one amendment after signing the agreement with Paradigm.

The Company believes all other remarks made in the release to be accurate to the best of their knowledge.

The foregoing press announcement contains forward-looking statements that can be identified by such terminology such as "believes," "expects," "potential," "plans," "suggests," "may," "should," "could," "intends," or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. In particular, management's expectations could be affected by, among other things, uncertainties relating to our success in completing acquisitions, financing our operations, entering into strategic partnerships, engaging management and other matters disclosed by us in our public filings from time to time. Forward-looking statements speak only as to the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.