Business Services Industry

Advanced Materials Group, Inc. Reports 2007 Fiscal Year Results

Business Wire, March 7, 2008

Manufacturing Solutions Company Celebrates Launch of Nundies, Receipt of ISO 13485 Certification and Third Successful Year in its Turnaround Plan

DALLAS -- Advanced Materials Group, Inc. (Pink Sheets: ADMG), a leading developer and manufacturer of medical, consumer and industrial products, today announced impressive revenues of $10,672,786 for the fiscal year (FY) ended November 30, 2007, an increase of 6.8% over the same period in 2006. The company also reported basic and diluted earnings per share for the fiscal year (FY) ended November 30, 2007 were $0.07 compared to $0.11 for the same period in 2006.

In addition, the company's ongoing cost savings plan and increase in sales resulted in a significant reduction in expenses to 12.3% or $1,643,524 from $1,874,791 over the same period in 2006.

"The close of Advanced Material Group Inc.'s 2007 fiscal year marks not only a period of strong operating performance for the company, including solid revenues and the successful deployment of our proprietary product plan, but also further demonstrates that our business strategy is working," said Will Mortensen, President of Advanced Materials Group, Inc. "Driving these results are a continued to commitment to our core competencies in manufacturing, engineering and fulfillment as well as our ongoing efforts to drive new customer acquisition through the introduction of innovative new products like Nundies."

Advanced Materials Group, Inc. celebrated the following key accomplishments in fiscal year 2007:

* Achievement of ISO 13485 certification, which signifies the positive assessment of the Company's medical device quality

* Successful launch Nundies product, a one-time use, pantyless panty that adheres to the inside inseam of a woman's pants across 400 stores throughout the United States

* Obtained $2,000,000 line of credit from JPMorgan Chase Bank, N.A. as capital to drive business operations and to support the Company's proprietary product research and development efforts

* Executed important equipment upgrades and controlled environment production facility improvements

About Advanced Materials Group, Inc.

Dallas-based Advanced Materials Group, Inc. is a leading developer and manufacturer of medical, consumer and industrial products for top Medical OEM's and retailers nationwide. Under the direction of the President, William G. Mortensen and its board of directors, the company has increased shareholder value by developing and selling proprietary and patented products and providing customized contract manufacturing services to many Fortune 100 companies. Advanced Materials Group, Inc. offers complete end-to-end solutions for it customers as well as its own product line. Services offered include contract manufacturing, engineering and fulfillment services.

Statements in this release which are purely historical facts or which necessarily depend upon future events, including statements about forecasted financial performance or other statements about anticipations, beliefs, expectations, hopes, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended.

Readers are cautioned not to place undue reliance on forward-looking statements. All forward-looking statements are based upon information available to Advanced Materials Group, Inc. on the date this report was submitted. Advanced Materials Group, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements. Advanced Materials Group, Inc. may not succeed in addressing these and other risks. Further information regarding factors that could affect our financial and other results can be found in the risk factors section of Advanced Materials Group, Inc.'s most recent filing of Form 10-K with the Securities and Exchange Commission.