Consolidated American Industries Corporation Forms New Rubber Company

TAMPA, Fla.--Aug. 29, 2006--Consolidated American Industries Corporation (Pink Sheets:CMDJ) today announced the formation of Consolidated American Rubber Corporation.

Consolidated American Rubber Corporation ("COAM Rubber"), is involved in the shredding and processing of steel-belted passenger and truck tires. COAM Rubber will be headquartered at Consolidated American Industries Corporation's manufacturing facility, located in Utica, New York. Finished products include sidewalks, pallets, mud flaps, and landscape mulch, arena footing and sports fill.

The Company also announced the sale of its wholly owned subsidiary, Century Container Corporation, which specialized in corrugated, chipboard, and solid fiber containers.

Consolidated American Industries Corporation, a Nevada corporation, with principal offices located in Tampa, Florida, is a public holding company involved in the manufacturing, natural resource, and financial services business segments, including real estate lending, management, and development activities. COAM's primary operating subsidies are: LoanWell Financial Corporation; Fusion Real Estate Corporation; Fusion Mortgage Corp.; McNulty First Lending, Inc.; SIG Wholesale Distribution, Inc.; VersaStone of Florida Corporation; and Consolidated American Resource Development Corp.

Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as "anticipate", "believe", "estimate", "expect", "intend" and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors such as the level of business and consumer spending, the amount of sales of the Company's products, the competitive environment within the industry, the ability of the Company to continue to expand its operations, the level of costs incurred in connection with the Company's expansion efforts, economic conditions in the industry and the financial strength of the Company's customers and suppliers. The Company does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.