SOURCE: American Green Group, Inc.

November 12, 2008 07:00 ET

AMNE Issues Shareholder Update

NEW HAVEN, CT--(Marketwire - November 12, 2008) - American Green Group, Inc. (PINKSHEETS: AMNE) has taken down a website called www.americangreengroup.com, owned by an association we had intended on purchasing, and paid $60,000 of the purchase price. The network consisted of a foam installer which was intended to help expand the current business, AES, our wholly owned subsidiary. Instead we are planning on rescinding the transaction in December. The future plans of AMNE do not include this company.

AMNE is moving into the $6 Billion building insulation business by becoming a cutting edge chemical sales company. We are creating a new, wholly owned subsidiary to operate this business which will be headed by Terry Mixon, who plans on implementing this business strategy by using the web, mailing, telephone marketing, and television advertising campaign to grow our associate applicator membership to at least 5 distributor companies in each state. AMNE will begin by recruiting known successful application companies in each state then begin a web-based associate membership drive. We will offer equipment, training and great pricing plus marketing support through the web program to all new associates. When we achieve the 5 applicators per state (which we expect will take about 18 months), even if we very conservatively estimate 4 sets per month each, we will be moving 1,000 sets per month! This translates to 12 million pounds of product or in excess of $25,000,000.00 in gross chemical sales. Estimating $2050.00 per set x 4 = $8,200 x 5 distributors = $ 41,000 x 50 states $2,050,000 per month = $24,600,000 per year.

AMNE will also seek partnerships/joint ventures with other companies that may need financial support to help grow the company. The Company will seek partnerships within the "GREEN" industry, but will be open to working with all companies interested in joining our team. AMNE will seek a percentage of ownership in any company it works with so when the company goes public or is acquired, AMNE will insure that it has an exit strategy.

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.