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The Lotas Club to Become ATG's Japanese Partner

17 June 1999

American Technologies Group Receives Endorsement From Premier Association of Vehicle Maintenance Providers in Japan; The Lotas Club to Become ATG's Japanese Partner

    MONROVIA, Calif.--June 16, 1999--American Technologies Group, Inc. (ATG) (OTC BB:ATEG), inventor and manufacturer of The Force(R), the proprietary airborne combustion enhancement product for improved engine performance, announced today the product has received the endorsement and approval of The Lotas Club, the premier association of vehicle maintenance providers in Japan.
    The 1,800-member Lotas Club, comprising 5,000 vehicle maintenance and repair facilities, is a leader in the creation of programs to fight environmental pollution. At today's 25th Anniversary Meeting in Tokyo, The Force was formally unveiled as the Club product to reduce vehicular emissions and conserve energy by reducing fuel consumption.
    The Lotas Club created a new environmental products division, headed by Mr. Miyamoto Osamu. Mr. Miyamoto commented on the Club's endorsement of The Force, "Adoption of The Force is not only good for reducing vehicle emissions but also is an economic revenue generating incentive for Lotas members."
    Members of the Lotas Club are responsible for the maintenance of the vast majority of government, commercial, and private vehicles in Japan. Members certify over 300,000 vehicles monthly for safety end emissions.
    The approval and use of The Force is based upon the findings of independent tests by the Japan Automotive Technology Association, an official Japanese testing facility. The tests proved The Force reduces emissions of toxic environmental pollutants by, respectively: carbon monoxide, 32.6%; hydrocarbons, 14.7%; and nitrogen oxide by 7%.
    The Force is an environmentally benign combustion enhancer, delivered into a vehicle's air intake system where it is added to the air/fuel mixture. The Force contains no halogens, solvents, or other environmentally hazardous ingredients. In extensive, independent testing, The Force has proven to be extremely effective in enhancing performance of both gasoline and diesel engines while reducing harmful environmental contaminates.
    On the evolving relationship with ATG, Mr. Suzuki Hidemori, chairman of the Lotas Group, said, "Having a strong relationship with ATG is of great benefit for Lotas' business. In addition to The Force, we intend to use ATG's technologies for Lotas' next project: the development of the next generation natural gas vehicle."
    Lawrence J. Brady, president of American Technologies Group, spoke with enthusiasm about partnering with the Lotas Club, "The adoption of The Force by Lotas members in their maintenance programs will result in a strong positive impact on the Japanese environment as well as a great economic benefit to the Japanese consumer and commercial interests through increased fuel economy. This is a relationship that has been months in the making and promises to be of great economic benefit to both organizations."
    American Technologies Group is an advanced science and technology company engaged in the development, commercialization, and sale of products and systems using its patented and proprietary technologies. The Company's core technologies are the IE(TM) Catalyst, Vacuum Distillation water-purification technology, and a high-energy particle beam. These technologies have applications in the nuclear, energy, medical, chemical, mining, oil, and personal and home care industries. The Force(R) is an environmentally safe automotive combustion product based on its IE Catalyst used to improve fuel economy and, over time, reduce carbon deposits.

    Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the Company's products, increased levels of competition, new products and technological changes, the Company's dependence upon third-party suppliers, intellectual property rights, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.