Shumate Industries Closes Sale of Subsidiary

Shumate Industries Inc. (OTCBulletinBoard: SHMT) announced that it has consummated the sale of Shumate Machine Works' assets to American International Industries, Inc. (NASDAQ: AMIN) or ("American") effective October 8, 2008. American intends to operate its newly acquired machining and manufacturing business through its wholly-owned subsidiary Shumate Energy Technologies, Inc. and will utilize the 30,000 square foot facilities in Conroe, Texas previously occupied by Shumate Machine Works for such purpose.

As previously disclosed in the proxy statement sent to our shareholders for the August 6, 2008 special meeting, Larry Shumate resigned as Chairman and CEO of Shumate Industries effective upon closing and entered into an employment agreement with Shumate Energy Technologies, Inc. to operate the machining and manufacturing business acquired by American pursuant to this transaction.

Additionally, Shumate Industries announced that it anticipates renaming the Company to reflect its focus on growing its Hemiwedge Valve Corporation (HVC) subsidiary and its proprietary Hemiwedge(R) technology. A resolution authorizing our directors to change the Company's name (as determined by our board of directors) was also approved at our August 6, 2008 special meeting of stockholders. The Company also announced that Mr. Ken Chickering, currently our Director and President of HVC, will replace Mr. Shumate as Chairman and CEO of Shumate Industries. Mr. Chickering previously served as President of Daniel Valve and Chairman of the Valve Manufacturers Association.

Mr. Chickering stated, "The Company is pleased to report this transaction has closed. Shumate Industries will now focus solely on its proprietary Hemiwedge(R) valve technology business including its Hemiwedge(R) Cartridge valve product line." Mr. Chickering continued, "On behalf of our Company's employees and stockholders we wish to thank Mr. Shumate for his years of service and dedication and we wish him well in his new role as President of Shumate Energy Technologies. While HVC has its own manufacturing equipment in its facilities, it will continue to enjoy a strategic alliance supplier relationship with Shumate Energy Technologies."

About the Company

Shumate Industries, Inc. is a publicly-traded holding company that operates as a global supplier of engineered valves products through its Hemiwedge Valve Corporation subsidiary. Within its 60,000 square foot ISO 9001 and API Q1 approved facility in Conroe, Texas, the Company manufactures and markets worldwide a patented proprietary new valve technology known as the Hemiwedge(R) Cartridge valve product line. The Hemiwedge(R) Cartridge Valve is an innovative design that incorporates the positives features of ball, gate, plug and high performance valves resulting in a mechanically sealing, tight shutoff valve with a simple operation that provides outstanding longevity and performance in a broad range of applications with virtually no maintenance. Additionally, the Company is in development of other Hemiwedge(R) technology, which it intends to commercialize via corporate partners. For additional information on the Company and its products, please visit http://www.hemiwedge.com.