Date:       December 8, 2009
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    ARGAN, INC. REPORTS THIRD QUARTER REVENUES OF $60.7 MILLION; EBITDA OF $3.4 MILLION

    Click Here to view financial statements.

    December 8, 2009 – ROCKVILLE, MD – Argan, Inc. (NYSE AMEX: AGX) today announced financial results for the nine months and third quarter ended October 31, 2009.

    For the nine months ended October 31, 2009, net revenues were $189.2 million compared to $164.9 million in the nine months ended October 31, 2008. Gemma Power Systems (Gemma) contributed $172 million, or 91% of net revenues in the first nine months of fiscal 2010, compared to $151 million, or 92% of net revenues in the first nine months of fiscal 2009. Combined net revenues from Argan’s other wholly-owned subsidiaries increased to $17.2 million, or 9% of net revenues for the nine months ended October 31, 2009, compared to $13.9 million, or 8% of net revenues during the same period last year.

    The Company reported consolidated EBITDA (Earnings before interest, taxes, depreciation and amortization) of $13 million for the nine months ended October 31, 2009. Gemma, for its segment, recorded $16 million in EBITDA for the first nine months of fiscal 2010.

    Net income for the first nine months of fiscal 2010 was $7.6 million, or $0.55 per diluted share based on 13,765,000 diluted shares outstanding, compared to net income of $5 million, or $0.40 per diluted share based on 12,480,000 diluted shares outstanding for the first nine months in fiscal 2009.

    For the quarter ended October 31, 2009, net revenues were $60.7 million compared to $41.4 million in the previous year. Gemma contributed $54.2 million, or 89% of net revenues for the third quarter of fiscal 2010, compared to $36.4 million, or 88% of net revenues for the third quarter of fiscal 2009. Combined net revenues from Argan’s other wholly-owned subsidiaries increased to $6.5 million, or 11% of net revenues for the quarter ended October 31, 2009, compared to $5 million, or 12% of net revenues during the same period last year.

    Despite the increase in net revenues for the quarter, gross margin declined to 11.3% compared to 16.5% in the quarter ended October 31, 2008. Gross profit in the third quarter of fiscal 2009 was favorably impacted by incentive fees of approximately $2.2 million that were earned from construction services.

    The Company reported consolidated EBITDA (Earnings before interest, taxes, depreciation and amortization) of $3.4 million for the three months ended October 31, 2009. Gemma, for its segment, recorded $4.2 million in EBITDA for the three months ended October 31, 2009.

    Net income for the third quarter of fiscal 2010 was $2 million, or $0.14 per diluted share based on 13,763,000 diluted shares outstanding, compared to net income of $2.6 million, or $0.19 per diluted share based on 13,730,000 diluted shares outstanding in the third quarter of fiscal 2009.

    Argan had consolidated cash of $53 million and escrowed cash of $5 million as of October 31, 2009. Consolidated working capital increased during the current quarter to approximately $60.9 million as of October 31, 2009 from approximately $53.5 million as of January 31, 2009.

    Gemma’s backlog as of October 31, 2009 was $293 million. Gemma’s backlog does not include projects associated with Gemma Renewable Power (GRP), its business partnership with Invenergy Wind Management. As of October 31, 2009 Gemma Renewable Power had substantially completed a construction project to expand a wind farm in LaSalle County, Illinois. The Company’s share of the earnings of GRP for the current quarter was approximately $325,000. Its share of the loss incurred by GRP for the quarter ended October 31, 2008 was $195,000.

    In August 2009 Argan signed a letter of intent to purchase United American Steel Constructors, LLC (Unamsco), a privately held company operating two subsidiaries, National Steel Constructors, LLC and Peterson Beckner Industries. Argan recently expanded the scope of its due diligence efforts and has not scheduled dates for the completion or execution of the definitive purchase agreement.

    Commenting on Argan’s results, Rainer Bosselmann, Chairman and Chief Executive Officer stated, “We are pleased with the results of the first nine months of fiscal 2010, which demonstrate increased revenues, net income, earnings per share and EBITDA. Our third quarter results were solid, with a 47% increase in net revenues, related primarily to increased construction activity at a power plant project in California.”

    “Gemma continues to drive our success. As electric utilities and independent power producers look to diversify their power generation options, we’ve seen increased interest in gas-fired plants, which are more efficient and produce fewer emissions than coal fired plants. We believe that the current initiatives in many states to reduce emissions of carbon dioxide and other green house gases, coupled with the utilities’ goal to fulfill the need for power will create renewed demand for gas-fired power plants.”

    “Additionally, as local and federal entities focus on energy independence and the environmental impact of fossil fuels, we believe the development of alternative and renewable power facilities will also result in opportunities for Gemma Renewable Power. In addition to the completion of the expansion of a wind farm during the most recent quarter, Gemma has also substantially finished the construction of a biodiesel production plant in Texas, the fourth project of this type completed within a two-year period. Gemma’s wide range of construction experience and power industry expertise position the Company well as a market leader for both traditional and alternative energy projects.”

    About Argan, Inc.

    Argan’s primary business is designing and building energy plants through its Gemma Power Systems subsidiary.  These energy plants include traditional gas as well as alternative energy including biodiesel, ethanol, and renewable energy sources such as wind power.  Argan also owns Southern Maryland Cable, Inc. and Vitarich Laboratories, Inc.

    Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties including, but not limited to: (1) the Company’s ability to achieve its business strategy while effectively managing costs and expenses; (2) the Company’s ability to successfully and profitably integrate acquisitions; and (3) the continued strong performance of the energy sector. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in Argan’s filings with the Securities and Exchange Commission. In addition, reference is hereby made to cautionary statements with respect to risk factors set forth in the Company’s most recent reports on Form 10-K and 10-Q, and other SEC filings.

     

     

    Date:       September 8, 2009
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    ARGAN, INC. REPORTS SECOND QUARTER REVENUES OF $65.5 MILLION; NET INCOME INCREASES TO $2.7 MILLION

    Click Here to view financial statements.

    September 8, 2009 – ROCKVILLE, MD – Argan, Inc. (NYSE AMEX: AGX) today announced financial results for the six months and second quarter ended July 31, 2009.

    For the six months ended July 31, 2009, total revenues were $128.6 million compared to $123.5 million in the six months ended July 31, 2008. Gemma (Gemma Power Systems) contributed $117.8 million or 91.6% of total revenues in the first six months of fiscal 2010 compared to $114.6 million or 92.8% of total revenues in the first six months of fiscal 2009. Combined revenues from Argan’s other wholly-owned subsidiaries increased to $10.7 million, or 8.4% of total revenues for the six months ended July 31, 2009 compared to $8.9 million, or 7.2% of total revenues during the same period last year.

    The Company reported consolidated EBITDA (Earnings before interest, taxes, depreciation and amortization) of $9.5 million for the six months ended July 31, 2009. Gemma, for its segment, recorded $11.8 million in EBITDA for the first six months of fiscal 2010.

    Net income for the six months in fiscal 2010 was $5.7 million or $0.41 per diluted share based on 13,756,000 diluted shares outstanding compared to net income of $2.4 million or $0.20 per diluted share based on 11,854,000 diluted shares outstanding for the six months in fiscal 2009.

    For the quarter ended July 31, 2009, net revenues were $65.5 million compared to $75.1 million in the previous year. Gemma contributed $59.8 million, or 91.4% of total revenues for the first quarter of fiscal 2010 compared to $70.6 million or 94.1% of total revenues for the first quarter of fiscal 2009. Combined revenues from Argan’s other wholly-owned subsidiaries increased to $5.7 million, or 8.6% of total revenues for the quarter ended July 31, 2009 compared to $4.5 million, or 5.9% of total revenues during the same period last year.

    The Company reported consolidated EBITDA (Earnings before interest, taxes, depreciation and amortization) of $4.4 million for the three months ended July 31, 2009. Gemma, for its segment, recorded $5.5 million in EBITDA for the three months ended July 31, 2009.

    Net income for the second quarter of fiscal 2010 was $2.7 million, or $0.19 per diluted share based on 13,771,000 diluted shares outstanding compared to net income of $806,000, or $0.07 per diluted share based on 12,226,000 diluted shares outstanding in the second quarter of fiscal 2009.

    Argan had consolidated cash of $52.1 million and escrowed cash of $10.0 million as of July 31, 2009. Consolidated working capital increased during the current quarter to approximately $58.8 million as of July 31, 2009 from approximately $53.6 million as of January 31, 2009.

    Gemma’s backlog as of July 31, 2009 was $346 million. Gemma’s backlog does not include projects associated with Gemma Renewable Power, its business partnership with Invenergy Wind Management. At July 31, 2009 Gemma Renewable Power’s contract backlog was $11.7 million for a contract to design and build the expansion of a wind farm in LaSalle County, Illinois.

    Subsequent to the close of the quarter, Argan signed a letter of intent to purchase United American Steel Constructors, LLC (Unamsco), a privately held company operating two subsidiaries, National Steel Constructors, LLC and Peterson Beckner Industries. In addition to traditional construction activities, National Steel and Peterson Beckner also focus on reducing the emissions produced by traditional coal fired power plants through their construction of air quality control systems known as scrubbers. Unamsco reported annual revenues of $84 million and EBITDA of approximately $19 million in 2008.

    Commenting on Argan’s results, Rainer Bosselmann, Chairman and Chief Executive Officer stated, “We are pleased with our current year results, particularly the significant year over year increases in net revenues, net income and EBITDA and the sequential improvement in revenues when compared to the first quarter of fiscal 2010. We reported a decrease in revenues for the quarter when compared to last year primarily due to the completed construction of two biofuel production facilities in Texas, substantially completed during the current year.”

    “Gemma’s backlog remains robust and our two largest current projects include the construction of gas fired electricity-generation plants. With their increased efficiencies and the ability to produce fewer emissions, we expect that gas-fired plants will continue to play an important long-term role in power generation development in the U.S., particularly with the increased emphasis on reducing greenhouse gas emissions. Likewise, with the significant growth in natural gas stockpiles in the U.S., gas-fired plants will likely see benefits such as increased accessibility and attractive pricing. We believe Gemma’s proven success in the construction of gas fired plants positions the company well as a market leader for future projects of this type.”

    Mr. Bosselmann continued, “Our agreement with Unamsco provides a unique opportunity to diversify and grow our business. As environmental mandates gain additional support from the Federal Government, we believe Unamsco’s ability to provide clean air solutions through the installation of air quality control systems will complement Gemma’s core competencies and enable us to further capitalize on new opportunities in the engineering and construction space and expand our market share.”

    About Argan, Inc.

    Argan’s primary business is designing and building energy plants through its Gemma Power Systems subsidiary.  These energy plants include traditional gas as well as alternative energy including biodiesel, ethanol, and renewable energy sources such as wind power.  Argan also owns Southern Maryland Cable, Inc. and Vitarich Laboratories, Inc.

    Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties including, but not limited to: (1) the Company’s ability to achieve its business strategy while effectively managing costs and expenses; (2) the Company’s ability to successfully and profitably integrate acquisitions; and (3) the continued strong performance of the energy sector. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in Argan’s filings with the Securities and Exchange Commission. In addition, reference is hereby made to cautionary statements with respect to risk factors set forth in the Company’s most recent reports on Form 10-K and 10-Q, and other SEC filings.

     

     

    Date:       August 10, 2009
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    ARGAN, INC. SIGNS LETTER OF INTENT TO ACQUIRE UNAMSCO – Acquisition Enhances Design & Construction Focus and Broadens Business to Include Clean Air Solutions –

    August 10, 2009 – ROCKVILLE, MD – Argan, Inc. (NYSE AMEX: AGX) today announced that it has signed a letter of intent to purchase United American Steel Constructors, Inc. (Unamsco), a private company operating two wholly-owned subsidiaries, National Steel Constructors, LLC, and Peterson Beckner Industries. In 2008, Unamsco reported annual revenues of approximately $84 million and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of approximately $19 million. The proposed purchase price is approximately $50 million, to be structured as a combination of cash and stock.

    Rainer Bosselmann, Chairman and Chief Executive Officer of Argan stated, “Unamsco is an attractive business with solid margins and we anticipate that its subsidiaries, with their long history in the construction business, will be complementary partners to our Gemma Power Systems subsidiary. In addition to traditional construction activities, National Steel and Peterson Beckner also focus on reducing the emissions produced by traditional coal fired power plants. The ability to provide clean air solutions through the installation of air quality control systems (AQCS), FGD systems and scrubbers, is a valuable asset in the engineering and construction space, particularly as environmental mandates gain additional support from the Federal Government.”

    “The management teams of Unamsco, National Steel and Peterson Beckner will continue to lead these companies, and strategically, we believe that the addition of these companies and their capabilities will enable us to further capitalize on new opportunities and expand our market share in the engineering and construction industry,” Mr. Bosselmann concluded.

    Chuck Beckner, Chairman of Unamsco, stated “the entire Unamsco team is pleased to join Argan and Gemma in expanding service offerings to our valued customers.”

    National Steel Constructors, with its Steel City Erecting Division, is one of the nation’s leading steel erection and power industry construction companies providing installation of air cooled condensers, and turnkey air quality control systems (AQCS) required by various environmental mandates related to the power industry. National’s power industry construction offerings include SCR and FGD systems and scrubbers, all capable of increasing the cleanliness of the emissions released by coal fired power plants.

    Peterson Beckner Industries enjoys a longstanding reputation as a premier constructor, specializing in the building of heavy and complex steel projects with unique construction engineering requirements such as power plants, industrial process plants, convention centers, healthcare and sports facilities as well as air quality control systems (AQCS) components, and boiler installation or repair for the power industry. Peterson Beckner Industries is also one of the few specialty contracting firms that has performed installation of steel structures in nuclear facilities under strict NQA-1 quality assurance standards required by the Nuclear Regulatory Commission. Founded in 1936, the company has primarily worked on projects in the Southwest, Southeast and Mid-Atlantic regions of the U.S.

    The acquisition of Unamsco is subject to completion of due diligence, the negotiation of definitive purchase agreement and the approval of Argan’s Board of Directors.

    About Argan, Inc.

    Argan’s primary business is designing and building energy plants through its Gemma Power Systems subsidiary.  These energy plants include traditional gas as well as alternative energy including biodiesel, ethanol, and renewable energy sources such as wind power.  Argan also owns Southern Maryland Cable, Inc. and Vitarich Laboratories, Inc.

    Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties including, but not limited to: (1) the Company’s ability to achieve its business strategy while effectively managing costs and expenses; (2) the Company’s ability to successfully and profitably integrate acquisitions; and (3) the continued strong performance of the energy sector. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in Argan’s filings with the Securities and Exchange Commission. In addition, reference is hereby made to cautionary statements with respect to risk factors set forth in the Company’s most recent reports on Form 10-K and 10-Q, and other SEC filings.

     

    Date:       June 8, 2009
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    ARGAN, INC. REPORTS 30% INCREASE IN REVENUES FOR THE FIRST QUARTER; DILUTED EPS OF $0.22; BACKLOG OF $404 MILLION

    Click Here to view financial statements.

    June 8, 2009 – ROCKVILLE, MD – Argan, Inc. (NYSE AMEX: AGX) today announced financial results for the first quarter ended April 30, 2009.

    For the quarter ended April 30, 2009, net revenues were $63.1 million compared to $48.4 million in the previous year. Gemma (Gemma Power Systems) contributed $58 million, or 92% of total revenues for the first quarter of fiscal 2010 compared to $44 million, or 91% of total revenues for the first quarter of fiscal 2009. Combined revenues from Argan’s other wholly-owned subsidiaries increased to $5.1 million, or 8% of total revenues for the quarter ended April 30, 2009 compared to $4.4 million, or 9% of total revenues during the same period last year. Net income for the first quarter of fiscal 2010 was $3 million, or $0.22 per diluted share based on 13,714,000 diluted shares outstanding compared to net income of $1.6 million, or $0.14 per diluted share based on 11,429,000 diluted shares outstanding in the first quarter of fiscal 2009.

    On a segment basis, Gemma reported income before income taxes of $6.1 million for the three months ended April 30, 2009 compared to $4 million for the three months ended April 30, 2008.

    The Company reported consolidated EBITDA (Earnings before interest, taxes, depreciation and amortization) of $5.1 million for the three months ended April 30, 2009.

    Gemma, for its segment, recorded $6.3 million in EBITDA for the three months ended April 30, 2009.

    Argan had consolidated cash of $57.9 million and escrowed cash of $10.0 million as of April 30, 2009. Consolidated working capital increased during the current quarter to approximately $56.1 million as of April 30, 2009 from approximately $53.6 million as of January 31, 2009.

    Gemma’s backlog as of April 30, 2009 was $404 million.

    Gemma’s most significant customer for the quarter ended April 30, 2009 was Pacific Gas & Electric, for the design and construction of a natural gas-fired power plant in Colusa, California whose contract is valued at approximately $364 million. Gemma also continued work on its project with Competitive Power Ventures for the design and construction of eight simple cycle gas-fired peaking plants with a total power rating of 800 megawatts, to be located in southern California.

    Gemma’s backlog does not include projects associated with Gemma Renewable Power, its business partnership with Invenergy Wind Management. At April 30, 2009 Gemma Renewable Power’s contract backlog was $19 million for a contract to design and build the expansion of a wind farm in LaSalle County, Illinois.

    Commenting on Argan’s results, Rainer Bosselmann, Chairman and Chief Executive Officer stated, “We are pleased to report increased net revenues, net income and EBITDA for the first quarter. Gemma has continued to prove itself as an industry leader in the design and construction of power plants, meeting the demand for traditional as well as alternative energy facilities. In recent months we have seen a renewed interest in gas-fired generation as electric utilities and independent power producers diversify their power generation options. In fact, our two current projects are the construction of gas-fired electricity generation plants and we expect that gas-fired plants, which are more efficient and produce fewer emissions than coal-fired power plants, will continue to be an important component of long-term power generation. Gemma has significant capabilities and expertise in the construction of gas-fired power plants which we believe will position us as a market leader for these projects.”

    Mr. Bosselmann continued, “We anticipate that the increased political focus on energy independence and the negative environmental impact of fossil fuels may encourage the development of alternative and renewable power facilities and provide us with new power facility opportunities. An energy infrastructure renewal program is included in the recently passed stimulus package, making funds available for a variety of new energy transmission and distribution systems and alternative energy power sources, including tax incentives to promote capital investment in renewable energy sources. With our diverse capabilities we remain cautiously optimistic about our growth opportunities through these new opportunities.”

    About Argan, Inc.

    Argan’s primary business is designing and building energy plants through its Gemma Power Systems subsidiary.  These energy plants include traditional gas as well as alternative energy including biodiesel, ethanol, and renewable energy sources such as wind power.  Argan also owns Southern Maryland Cable, Inc. and Vitarich Laboratories, Inc.

    Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties including, but not limited to: (1) the Company’s ability to achieve its business strategy while effectively managing costs and expenses; (2) the Company’s ability to successfully and profitably integrate acquisitions; and (3) the continued strong performance of the energy sector. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in Argan’s filings with the Securities and Exchange Commission. In addition, reference is hereby made to cautionary statements with respect to risk factors set forth in the Company’s most recent reports on Form 10-K and 10-Q, and other SEC filings.

     

     

     

    Date:       April 15, 2009
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    ARGAN, INC. REPORTS DILUTED EPS OF $0.37 FOR THE FOURTH QUARTER; BACKLOG EXCEEDS $450 MILLION

    Click Here to view financial statements.

    April 15, 2009 – ROCKVILLE, MD – Argan, Inc. (NYSE AMEX: AGX) today announced financial results for the fourth quarter and year ended January 31, 2009.

    For the year ended January 31, 2009, net revenues were $220.9 million compared to $206.8 million in the previous year. Gemma contributed $202.3 million, or 91.6% of total revenues, in fiscal 2009 compared to $180.4 million, or 87.2% of total revenues last year. Combined revenues from Argan’s other wholly-owned subsidiaries decreased to $18.6 million, or 8.4% of total revenues for fiscal 2009 compared to $26.4 million, or 12.8% of total revenues last year. Net income for fiscal 2009 was $10.0 million, or $0.78 per diluted share based on 12,779,000 diluted shares outstanding compared to a net loss of $3.2 million or $0.29 per diluted share based on 11,097,000 diluted shares outstanding last year.

    Net revenues for the three months ended January 31, 2009 were $56.0 million compared to $53.9 million for the same quarter last year. Argan’s wholly-owned subsidiary, Gemma Power Systems (Gemma), contributed $51.3 million, or 91.6% of total revenues, for the quarter ended January 31, 2009 compared to $49.4 million, or 91.7% of total revenues, for the fourth quarter last year. Combined revenues for the quarter ended January 31, 2009 at Argan’s other wholly-owned subsidiaries increased to $4.7 million or 8.4% of total revenues from $4.5 million, or 8.3% of total revenues, in the quarter ended January 31, 2008. Net income for the fourth quarter ended January 31, 2009 was $5.0 million, or $0.37 per diluted share based on 13,626,000 diluted shares outstanding compared to a net loss of $565,000, or $0.05 per diluted share based on 11,105,000 diluted shares outstanding in the quarter ended January 31, 2008.

    The Company reported consolidated EBITDA (Earnings before interest, taxes, depreciation and amortization) of $19.6 million and $9.0 million, respectively, for the full year and three months ended January 31, 2009.

    On a segment basis, Gemma reported income before income taxes of $29.4 million for the fiscal year and $13.4 million for the three months ended January 31, 2009.

    Argan had cash of $74.7 million and escrowed cash of $10.0 million as of January 31, 2009. Consolidated working capital increased during the current year to approximately $53.6 million as of January 31, 2009 from approximately $16.5 million as of January 31, 2008.

    The Company’s backlog as of January 31, 2009 was $456 million.

    Included in the backlog is Gemma’s engineering, procurement and construction agreement with Competitive Power Ventures (CPV), signed in October and valued at $211 million, to design and build eight simple cycle gas-fired peaking plants with a total power rating of 800 megawatts, to be located in southern California. Additionally in the three months ended October 31, 2008, Gemma received a full notice to proceed from Pacific Gas & Electric on the design and construction of a natural gas-fired power plant in Colusa, California. The Company previously announced that it had signed an engineering, procurement and construction agreement for the Colusa project.

    Gemma’s backlog does not include projects associated with Gemma Renewable Power, its business partnership with Invenergy Wind Management. At January 31, 2009, Gemma Renewable Power’s contract backlog was $30.8 million for a contract to design and build the expansion of a wind farm in LaSalle County, Illinois.

    Commenting on Argan’s results, Rainer Bosselmann, Chairman and Chief Executive Officer stated, “Argan delivered another strong performance in fiscal 2009. Our Gemma subsidiary, on a stand alone basis, reported increased EBITDA of $31.2 million from $16.8 million in the prior year and our backlog remains strong. Gemma continues to build its reputation as a leading designer and builder of power plants, and our energy agnostic approach positions Gemma to be a long term leader that can meet demand in this evolving marketplace.”

    Mr. Bosselmann continued, “Energy is an important part of the new administration’s agenda in Washington and the power plants we build are necessary to generate the energy our country needs to operate on a daily basis. Furthermore, our involvement in the alternative and renewable energy sector via our wind power venture provides new business opportunities and also positions us well to benefit from public sentiment toward environmentally friendly energy generation.”

    About Argan, Inc.

    Argan’s primary business is designing and building energy plants through its Gemma Power Systems subsidiary.  These energy plants include traditional gas as well as alternative energy including biodiesel, ethanol, and renewable energy sources such as wind power.  Argan also owns Southern Maryland Cable, Inc. and Vitarich Laboratories, Inc.

    Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties including, but not limited to; (1) the Company’s ability to achieve its business strategy while effectively managing costs and expenses; (2) the Company’s ability to successfully and profitably integrate acquisitions; and (3) the continued strong performance of the energy sector. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in Argan’s filings with the Securities and Exchange Commission. In addition, reference is hereby made to cautionary statements with respect to risk factors set forth in the Company’s most recent reports on Form 10-K and 10-Q, and other SEC filings.

     

     

     

    Date:       March 16, 2009
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    ARGAN, INC. ANNOUNCES THE PASSING OF JOEL M. CANINO

    MARCH 16, 2009 – ROCKVILLE, MD – Argan, Inc. (NYSE Alternext U.S: AGX) regretfully announces that Joel M. Canino, co-founder and vice chairman of Gemma Power Systems, passed away on Friday, March 13, 2009. The company extends its sincerest condolences to Mr. Canino’s family. Mr. Canino co-founded Gemma Power Systems with William F. Griffin in 1997 and today the Company is one of the largest power plant builders in New England and among the top 20 power plant builders in the nation. Before founding Gemma he served as Chief Executive Officer of CNF Industries, Inc. (now known as Kenetech Energy Systems), a leader in the independent power market. He was a graduate of the Air Conditioning Engineering Technology program at the State University of New York Canton and a former chair of the SUNY Canton Foundation Board of Directors. In December 2004 he gave the largest single gift in the school’s history. In appreciation of his generosity the School of Engineering Technology was renamed the Canino School of Engineering Technology.

    Rainer Bosselmann, Chairman and Chief Executive Officer stated, “Joel was truly an industry veteran and Gemma Power Systems benefited greatly from his expertise and leadership. We are deeply saddened by his passing and convey our heartfelt condolences to his family.”

    William Griffin remains Chief Executive Officer of Gemma Power Systems and the Company’s management team includes Eric Whitehouse who was recently named President.

    About Argan, Inc.

    Argan’s primary business is designing and building energy plants through its Gemma Power Systems subsidiary.  These energy plants include traditional gas as well as alternative energy including biodiesel, ethanol, and renewable energy sources such as wind power and solar.  Argan also owns Southern Maryland Cable, Inc. and Vitarich Laboratories, Inc.

    Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties including, but not limited to; (1) the Company’s ability to achieve its business strategy while effectively managing costs and expenses; (2) the Company’s ability to successfully and profitably integrate acquisitions; and (3) the continued strong performance of the energy sector. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in Argan’s filings with the Securities and Exchange Commission. In addition, reference is hereby made to cautionary statements with respect to risk factors set forth in the Company’s most recent reports on Form 10-K and 10-Q, and other SEC filings.

     

     

     

    Date:       January 5, 2009
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    Argan, Inc.’s Wholly Owned Subsidiary Gemma Power Systems Announces New President – Gemma Also Announces New VP of Operations

    January 5, 2009 — Rockville, MD – Argan, Inc. (NYSE Alternext U.S: AGX) announced today the appointment of Mr. Eric Whitehouse as President of its wholly owned subsidiary Gemma Power Systems effective January 2, 2009.

    Mr. Whitehouse has over 25 years experience in the power industry including all types of renewable power such as wind, biomass and solar. Most recently, Mr. Whitehouse was Director of Construction in the business development group at The AES Corporation, one of the world’s largest global power companies. At AES, Mr. Whitehouse planned facility engineering, construction and EPC contracts for liquid natural gas (LNG) terminals, pipelines and power generation facilities. Previously, Mr. Whitehouse served as Vice President of Gemma from 1997 to 2004.

    Mr. Whitehouse replaces William F. Griffin as President. Mr. Griffin will remain Chief Executive Officer of Gemma.

    Additionally, Gemma recently added Mr. Brad Lukehart as Vice President of Operations. Most recently, Mr. Lukehart was Project Director and Vice President at Shaw Power Group where he oversaw several billion dollar plus projects. Mr. Lukehart also previously worked at Gemma.

    Rainer Bosselmann, Chairman and Chief Executive Officer of Argan, stated, “Eric Whitehouse has considerable experience in all aspects of Gemma’s business and he is well-suited to help lead Gemma in 2009 and beyond. With the additional appointment of Brad Lukehart to VP of Operations, we have brought back two veterans who are a perfect fit for our company and we are excited about working with them again.”

    About Argan, Inc.

    Argan’s primary business is designing and building energy plants through its Gemma Power Systems subsidiary.  These energy plants include traditional gas as well as alternative energy including biodiesel, ethanol, and renewable energy sources such as wind power and solar.  Argan also owns Southern Maryland Cable, Inc. and Vitarich Laboratories, Inc.

    Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties including, but not limited to; (1) the Company’s ability to achieve its business strategy while effectively managing costs and expenses; (2) the Company’s ability to successfully and profitably integrate acquisitions; and (3) the continued strong performance of the energy sector. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in Argan’s filings with the Securities and Exchange Commission. In addition, reference is hereby made to cautionary statements with respect to risk factors set forth in the Company’s most recent reports on Form 10-K and 10-Q, and other SEC filings.

     

    Date:       December 12, 2008
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    ARGAN, INC. REPORTS DILUTED EPS OF $0.19 FOR THE THIRD QUARTER; BACKLOG EXCEEDS $505 MILLION

    Click Here to view financial statements.

    December 12, 2008 – ROCKVILLE, MD – Argan, Inc. (NYSE Alternext U.S: AGX) today announced financial results for the three and nine months ended October 31, 2008.

    For the nine months ended October 31, 2008, net revenues were $164.9 million compared to $152.8 million in the nine months ended October 31, 2007. Gemma contributed $151.0 million, or 91.6% of total revenues, in the first nine months of fiscal 2009 compared to $131.0 million, or 85.7% of total revenues in the first nine months of fiscal 2008. Combined revenues from Argan’s other wholly-owned subsidiaries decreased to $13.9 million, or 8.4% of total revenues in the first nine months of fiscal 2009 compared to $21.9 million, or 14.3% of total revenues in the first nine months of fiscal 2008. Net income for the first nine months ended October 31, 2008 was $5.0 million, or $0.40 per fully diluted share based on 12,480,000 fully diluted shares outstanding compared to a net loss of $2.6 million or ($0.24) per fully diluted share based on 11,095,000 fully diluted shares outstanding for the first nine months ended October 31, 2007.

    Net revenues for the three months ended October 31, 2008 were $41.4 million compared to $49.3 million for the three months ended October 31, 2007. Argan’s wholly-owned subsidiary, Gemma Power Systems (Gemma), contributed $36.4 million, or 87.9% of total revenues, for the quarter ended October 31, 2008 compared to $42.0 million, or 85.3% of total revenues, for the quarter ended October 31, 2007. Combined revenues for the quarter ended October 31, 2008 at Argan’s other wholly-owned subsidiaries decreased to $5.0 million or 12.1% of total revenues from $7.2 million, or 14.7% of total revenues, in the quarter ended October 31, 2007. Net income for the third quarter ended October 31, 2008 was $2.6 million, or $0.19 per fully diluted share based on 13,730,000 fully diluted shares outstanding compared to a net loss of $2.0 million, or ($0.18) per fully diluted share based on 11,096,000 fully diluted shares outstanding in the quarter ended October 31, 2007.

    The Company reported consolidated EBITDA (Earnings before interest, taxes, depreciation and amortization) of $13.3 million and $4.5 million, respectively, for the nine months and three months ended October 31, 2008.

    On a segment basis, Gemma reported income before income taxes of $16 million for the nine months and $5.9 million for the three months ended October 31, 2008.

    Argan had cash of $93.1 million and escrowed cash of $10.3 as of October 31, 2008. The Company’s backlog as of October 31, 2008 was $505 million.

    Included in the backlog is Gemma’s engineering, procurement and construction agreement with Competitive Power Ventures (CPV), signed in October and valued at $211 million, to design and build eight simple cycle gas-fired peaking plants with a total power rating of 800 megawatts, to be located in southern California. Additionally in the three months ended October 31, 2008, Gemma received a full notice to proceed from Pacific Gas & Electric on the design and construction of a natural gas-fired power plant in Colusa, California. The Company previously announced that it had signed an engineering, procurement and construction agreement for the Colusa project.

    Gemma’s backlog does not include projects associated with Gemma Renewable Power, its business partnership with Invenergy Wind Management. During the quarter, Gemma Renewable Power received an initial limited notice to proceed on a project with an estimated contract value of $50 million, to design and build the expansion of a wind farm in LaSalle County, Illinois.

    Commenting on Argan’s results, Rainer Bosselmann, Chairman and Chief Executive Officer stated, “We achieved strong EBITDA margin and improved net income year-to-date and for the quarter. Gemma continues to perform very well and benefits from its reputation as a leading designer and builder of power plants. Year-to-date revenue at Gemma increased 15% and year-to-date pretax income increased by 147%. During the quarter, Gemma was successfully completing the final phases of several renewable energy projects and was in the early stages of two substantial traditional power projects.”

    Mr. Bosselmann concluded, “In addition to Gemma’s strong existing backlog, we are encouraged by potential opportunities for the design and construction of wind farms through Gemma Renewable Power, our joint venture with Invenergy. Gemma has been very successful in the design and construction of traditional energy plants and we believe that expertise will translate well to the efficient design and development of wind energy facilities.”

    About Argan, Inc.

    Argan’s primary business is designing and building energy plants through its Gemma Power Systems subsidiary.  These energy plants include traditional gas as well as alternative energy including biodiesel, ethanol, and renewable energy sources such as wind power and solar.  Argan also owns Southern Maryland Cable, Inc. and Vitarich Laboratories, Inc.

    Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties including, but not limited to; (1) the Company’s ability to achieve its business strategy while effectively managing costs and expenses; (2) the Company’s ability to successfully and profitably integrate acquisitions; and (3) the continued strong performance of the energy sector. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in Argan’s filings with the Securities and Exchange Commission. In addition, reference is hereby made to cautionary statements with respect to risk factors set forth in the Company’s most recent reports on Form 10-K and 10-Q, and other SEC filings.

     

     

     

    Date:       October 24, 2008
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    Gemma Renewable Power LLC Receives Initial Limited Notice to Proceed On $50 million Wind Farm Contract

    October 24, 2008 — Rockville, MD – Argan, Inc. (NYSE Alternext U.S: AGX) announced that its wholly owned subsidiary Gemma Power Systems, through its joint venture entity Gemma Renewable Power LLC, has received an Initial Limited Notice to Proceed from Grand Ridge II LLC for an approximately $50 million contract to design and build the expansion of a wind farm in LaSalle County, Illinois. The Grand Ridge wind farm is expected to consist of up to 166 wind turbines and Gemma Renewable Power will provide design and construction of roads, foundations, and electrical collection systems in addition to erecting towers, turbines, and blades.

    Gemma Renewable Power, LLC was formed in June as a joint venture between Gemma Power Systems and Invenergy Wind Management LLC with the partners each owning 50% of the new company.

    Rainer Bosselmann, Chairman and Chief Executive Officer of Argan, stated, “We are very pleased to receive approval to move ahead on this important alternative energy project. Gemma Renewable Power was formed to access the tremendous opportunities that exist in the renewable energy sector and we are confident that Gemma’s project management and construction capabilities will contribute to the success of this project.”

    Gemma Renewable Power, LLC expects to receive the Final Notice to Proceed shortly, subject to negotiation of the Balance of Plant (BOP) contract. The project is anticipated to be completed in 2009.

    About Argan, Inc.

    Argan’s primary business is designing and building energy plants through its Gemma Power Systems subsidiary.  These energy plants include traditional gas as well as alternative energy including biodiesel, ethanol, and renewable energy sources such as wind power and solar.  Argan also owns Southern Maryland Cable, Inc. and Vitarich Laboratories, Inc.

    Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties including, but not limited to; (1) the Company’s ability to achieve its business strategy while effectively managing costs and expenses; (2) the Company’s ability to successfully and profitably integrate acquisitions; and (3) the continued strong performance of the energy sector. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in Argan’s filings with the Securities and Exchange Commission. In addition, reference is hereby made to cautionary statements with respect to risk factors set forth in the Company’s most recent reports on Form 10-K and 10-Q, and other SEC filings.

     

     

     

    Date:       October 16, 2008
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    Argan, Inc.’s Wholly Owned Subsidiary Gemma Power Systems Receives Full Notice to Proceed from Pacific Gas & Electric on $340 Million Contract.

    October 16, 2008 — Rockville, MD – Argan, Inc. (NYSE Alternext U.S: AGX) announced that its wholly owned subsidiary, Gemma Power Systems, has received Full Notice to Proceed from Pacific Gas & Electric (PG&E) under its approximately $340 million Engineering, Procurement and Construction Agreement (EPC) to design and build a natural gas-fired, combined cycle, power plant in Colusa County, California. The Colusa facility will be a 640 MW 2X1 combined cycle facility with a planned completion date of late 2010.

    Rainer Bosselmann, Chairman and Chief Executive Officer of Argan, stated, “Since receiving a limited notice to proceed in November of 2007 and an EPC agreement in May 2008, Gemma has been designing, procuring major components, performing preliminary site work, roadwork and bridge replacements and planning the construction of the Colusa facility. The receipt of this full notice to proceed enables Gemma to install permanent structures on site for this important project and we look forward to working with PG& E toward the successful completion of this power plant.”

    About Argan, Inc.

    Argan’s primary business is designing and building energy plants through its Gemma Power Systems subsidiary.  These energy plants include traditional gas as well as alternative energy including biodiesel, ethanol, and renewable energy sources such as wind power and solar.  Argan also owns Southern Maryland Cable, Inc. and Vitarich Laboratories, Inc.

    Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties including, but not limited to; (1) the Company’s ability to achieve its business strategy while effectively managing costs and expenses; (2) the Company’s ability to successfully and profitably integrate acquisitions; and (3) the continued strong performance of the energy sector. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in Argan’s filings with the Securities and Exchange Commission. In addition, reference is hereby made to cautionary statements with respect to risk factors set forth in the Company’s most recent reports on Form 10-K and 10-Q, and other SEC filings.

     

     

     

    Date:       September 11, 2008
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    ARGAN, INC. REVENUES INCREASE 41% IN SECOND QUARTER; BACKLOG EXCEEDS $500 MILLION

    Click Here to view financial statements.

    September 11, 2008 – ROCKVILLE, MD – Argan, Inc. (Amex: AGX) today announced financial results for the second quarter of its fiscal year 2009 ended July 31, 2008.

    Net sales for the three months ended July 31, 2008 were $75 million compared to $53 million for the three months ended July 31, 2007, an increase of 41.3%. Argan’s wholly-owned subsidiary, Gemma Power Systems, contributed $70.6 million, or 94.1% of total revenues, for the quarter ended July 31, 2008 compared to $45.6 million, or 85.8% of total revenues, for the quarter ended July 31, 2007. Combined revenues for the quarter ended July 31, 2008 at Argan’s other wholly-owned subsidiaries decreased to $4.5 million or 5.9% of total revenues, from $7.5 million, or 14.2% of total revenues, in the quarter ended July 31, 2007.

    The Company reported consolidated EBITDA (Earnings before interest, taxes, depreciation and amortization) of $5.1 million and $8.8 million, respectively, for the quarter and six month periods ended July 31, 2008. On a stand alone basis, Gemma reported EBITDA of $6.6 million for the quarter ended July 31, 2008 and EBITDA of $11.4 million for the first six months ended July 31, 2008.

    Net income for the quarter ended July 31, 2008 was $806,000, or $0.07 per fully diluted share based on 12,226,000 fully diluted shares outstanding, compared to $1,334,000, or $0.12 per fully diluted share based on 11,196,000 fully diluted shares outstanding, in the quarter ended July 31, 2007. Net income for the quarter was adversely affected by the underperformance of Argan’s Vitarich Laboratories (VLI) subsidiary, which recorded impairment losses encompassing substantially all of its remaining goodwill, other purchased intangible assets and fixed assets in the amounts of $921,000, $86,000 and $939,000, respectively.

    For the six months ended July 31, 2008, net sales were $123.5 million compared to $103.6 million in the six months ended July 31, 2007. Gemma contributed $114.6 million, or 92.8% of total revenues, in the first six months of fiscal 2009 compared to $89 million, or 85.9% of total revenues, in the first six months of fiscal 2008. Combined revenues from Argan’s other wholly-owned subsidiaries decreased to $8.9 million, or 7.2% of total revenues, in the first six months of fiscal 2009 compared to $14.6 million, or 14.1% of total revenues, in the first six months of fiscal 2008. Net income for the first six months ended July 31, 2008 was $2,361,000, or $0.20 per fully diluted share based on 11,854,000 fully diluted shares outstanding, compared to a net loss of $681,000, or $0.06 per fully diluted share based on 11,094,000 fully diluted shares outstanding, for the first six months ended July 31, 2007.

    Argan’s cash position increased to $104 million as of July 31, 2008. Net cash provided by operations for the six months ended July 31, 2008 was approximately $15.7 million. Argan’s backlog as of July 31, 2008 was $530 million.

    Included in the backlog is Gemma’s engineering, procurement and construction agreement with Pacific Gas & Electric Company (PG&E), signed in May and originally valued at $336 million, for a natural gas-fired power plant in Colusa, California. The plant will be a 640 megawatt combined cycle facility. Additionally, the Company announced in late July that it signed an engineering, procurement and construction agreement and received a limited notice to proceed from Competitive Power Ventures to design and build the Sentinel Power Project in southern California, a contract valued at $211 million. The two-phase project consists of eight simple cycle gas-fired peaking plants with a total power rating of 800 megawatts. The first phase of this project includes the construction of five units and the second phase comprises the construction of the three remaining units.

    Commenting on the quarter, Rainer Bosselmann, Chairman and Chief Executive Officer stated, “We are very pleased with the results of the second quarter which marked solid revenue growth and EBITDA performance. As expected, Gemma’s contribution to total revenues continued to grow during the quarter and Gemma showed significant gains in EBITDA for both the quarter and first six months. Likewise, our contract backlog has grown substantially to exceed $500 million and we expect revenues to increase as these contracts evolve from the engineering and procurement stage to the construction stage of execution.”

    Mr. Bosselmann continued, “Also during the quarter we announced our new partnership with Invenergy Wind Management LLC for the design and construction of wind farms located in the United States and Canada. This endeavor will enhance our participation in the alternative energy space and creates a diverse source of earnings.”

    “While the company’s consolidated performance was strong for the quarter, our VLI subsidiary performed below our expectations and as a result, net income in the quarter was negatively impacted. VLI is actively pursuing opportunities to increase the volume of business with existing customers and to add new customers, but has been experiencing significant challenges to its performance in recent quarters.”

    Mr. Bosselmann concluded, “We believe the proven performance of Gemma, combined with our robust backlog of traditional engineering and construction contracts and opportunities associated with our Invenergy partnership position us well for continued growth and strong cash flow.”

    About Argan, Inc.

    Argan’s primary business is designing and building energy plants through its Gemma Power Systems subsidiary.  These energy plants include traditional gas as well as alternative energy including biodiesel, ethanol, and renewable energy sources such as wind power and solar.  Argan also owns Southern Maryland Cable, Inc. and Vitarich Laboratories, Inc.

    Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties including, but not limited to; (1) the Company’s ability to achieve its business strategy while effectively managing costs and expenses; (2) the Company’s ability to successfully and profitably integrate acquisitions; and (3) the continued strong performance of the energy sector. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in Argan’s filings with the Securities and Exchange Commission. In addition, reference is hereby made to cautionary statements with respect to risk factors set forth in the Company’s most recent reports on Form 10-K and 10-Q, and other SEC filings.

     

     

     

    Date:       September 3, 2008
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    Argan, Inc. Announces Appointment of William F. Griffin as President and Chief Executive Officer of Gemma Power Systems

    September 3, 2008 — Rockville, MD – Argan, Inc. (AMEX: AGX) today announced that William F. Griffin, Jr. has been named President and Chief Executive Officer of its wholly-owned subsidiary Gemma Power Systems, effective immediately. Mr. Griffin’s appointment follows the resignation of Timothy Curran on August 29, 2008.

    Rainer Bosselmann, Chairman and CEO of Argan, Inc. stated, “As a co-founder of Gemma Power Systems, Bill Griffin helped to build one of the leading power plant design and construction firms in the industry. At the time of Argan’s acquisition of Gemma he was the company’s President and Chief Operating Officer and has since maintained his leadership role as a managing director. With his more than 33 years of experience in all aspects of engineering and construction, industry relationships and expertise in the day to day operations of Gemma, Bill is distinctly qualified to lead the company’s growth and we are pleased that he has accepted this role.“

    About Argan, Inc.

    Argan’s primary business is designing and building energy plants through its Gemma Power Systems subsidiary.  These energy plants include traditional gas as well as alternative energy including biodiesel, ethanol, and renewable energy sources such as wind power and solar.  Argan also owns Southern Maryland Cable, Inc. and Vitarich Laboratories, Inc.

    Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties including, but not limited to; (1) the Company’s ability to achieve its business strategy while effectively managing costs and expenses; (2) the Company’s ability to successfully and profitably integrate acquisitions; and (3) the continued strong performance of the energy sector. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in Argan’s filings with the Securities and Exchange Commission. In addition, reference is hereby made to cautionary statements with respect to risk factors set forth in the Company’s most recent reports on Form 10-K and 10-Q, and other SEC filings.

     

    Date:       July 28, 2008
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    Company to Build Eight Unit Simple Cycle Peaking Project in Southern California

    July 28, 2008 — Rockville, MD – Argan, Inc. (AMEX: AGX) announced that its wholly owned subsidiary, Gemma Power Systems, has signed an EPC contract and received a limited notice to proceed from CPV Sentinel for an approximately $210 million contract to design and build eight simple cycle peaking plants in southern California. CPV Sentinel has a power purchase agreement with Southern California Edison.

    The project will be completed in two phases. The first phase, which includes the construction of five simple cycle peaking units, is expected to be completed in the summer of 2010. The second phase of the project, comprised of the construction of three units, is expected to finish in April 2011.

    Rainer Bosselmann, Chairman and Chief Executive Officer of Argan, stated, “Gemma has a great deal of experience in the project management and construction of simple cycle peaking plants and has completed numerous facilities of this type in locations across the country. We look forward to working with CPV Sentinel toward the successful, on-time completion of this project.”

    About Argan, Inc.

    Argan’s primary business is designing and building energy plants through its Gemma Power Systems subsidiary.  These energy plants include traditional gas as well as alternative energy including biodiesel, ethanol, and renewable energy sources such as wind power and solar.  Argan also owns Southern Maryland Cable, Inc. and Vitarich Laboratories, Inc.

    Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties including, but not limited to; (1) the Company’s ability to achieve its business strategy while effectively managing costs and expenses; (2) the Company’s ability to successfully and profitably integrate acquisitions; and (3) the continued strong performance of the energy sector. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in Argan’s filings with the Securities and Exchange Commission. In addition, reference is hereby made to cautionary statements with respect to risk factors set forth in the Company’s most recent reports on Form 10-K and 10-Q, and other SEC filings.

     

     

     

    Date:       June 12, 2008
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    ARGAN, INC. ANNOUNCES RECORD FIRST QUARTER PROFITS

    Click Here to view financial statements.

    June 12, 2008 — Rockville, MD — Argan, Inc. (Amex: AGX) today announced financial results for the first quarter of its fiscal year 2009 ended April 30, 2008.

    Net sales for the three months ended April 30, 2008 were $48.4 million compared to $50.4 million for the three months ended April 30, 2007. Argan’s wholly-owned subsidiary, Gemma Power Systems, contributed $44 million, or 91% of total revenues for the quarter ended April 30, 2008 compared to $43.3 million or 86% of total revenues for the quarter ended April 30, 2007. Combined revenues for the quarter ended April 30, 2008 at Argan’s other wholly-owned subsidiaries decreased to $4.4 million or 9% of total revenues from $7.1 million or 14% of total revenues in the quarter ended April 30, 2007.

    Commenting on the revenues for the quarter, Rainer Bosselmann, Chairman and Chief Executive Officer stated, “Revenues at Gemma were negatively affected in the first quarter by a contract to construct an ethanol facility that was suspended during the first quarter. While it slowed our short term sales growth, we anticipate strong second quarter revenue from Gemma. Furthermore, subsequent to the close of the first quarter, two major corporate developments occurred which should have a positive impact on our business during the remainder of 2008 and beyond. We announced an engineering, procurement and construction agreement with Pacific Gas & Electric Company in the amount of $340 million for the design and construction of a natural gas-fired power plant in Colusa, California. The Colusa facility will be a 640 megawatt combined cycle facility and construction is expected to be completed during the summer of 2010. Gemma realized some revenues from this project in the first quarter under the interim notice to proceed that it received in December, and expects revenue from this project to substantially increase in the second and third quarters.”

    Mr. Bosselmann continued, “Subsequent to the quarter end, we also announced our new partnership with Invenergy Wind Management LLC for the design and construction of wind farms located from the Mid-Western region of the United States into Canada. This partnership significantly enhances our positioning in the alternative energy space and provides a significant new potential earnings stream.”

    The Company believes that its Non-GAAP Measurement of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) provides investors with a valuable supplemental measure of our operating performance. EBITDA for the quarter ended April 30, 2008 was $3.7 million, or 7.7% of sales, compared to an EBITDA loss of $348,000 million for the fiscal quarter ended April 30, 2007.

    Mr. Bosselmann continued, “We are moderately pleased with our margin performance for the quarter. Higher gross margins due to strong project performances and lower SG&A as a percentage of sales helped drive improved EBITDA to over 7% of sales, with Gemma reporting an 11% EBITDA margin on a stand alone basis.”

    Mr. Bosselmann concluded, “We are enthusiastic about the breadth and size of business opportunities that lie ahead of us. We have replenished our backlog with the large Colusa contract which is now ramping up, and the Invenergy partnership is an extremely exciting long term opportunity for us.”

    About Argan, Inc.

    Argan is a publicly traded holding company focusing on companies that provide products and services to growth industries. Argan’s primary business is designing and building energy plants for the rapidly growing alternative energy sector through its Gemma Power Systems subsidiary. Argan has two other subsidiaries: Southern Maryland Cable, which provides inside premise wiring services to the federal government including military installations and government office sites requiring high-level security clearance and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers; and Vitarich Laboratories, a vertically integrated private label manufacturer that manufactures, packages and distributes premium nutraceutical products, including nutritional and whole food dietary supplements and other personal healthcare products.

    This press release contains forward-looking statements. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” or similar expressions are intended to identify “forward-looking statements.” Argan’s financial and operational results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company’s plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company’s most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the Securities and Exchange Commission.

     

     

     

    Date:       June 5, 2008
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    Argan, Inc.’s Wholly Owned Subsidiary Gemma Power Systems to Partner With Invenergy Wind Management, LLC For Wind Farm Projects.

    June 05, 2008 — Rockville, MD – Argan, Inc. (AMEX: AGX) announced that its wholly owned subsidiary, Gemma Power Systems, has entered into a partnership with Invenergy Wind Management LLC, for the design and construction of wind farms located from the Mid-Western region of the United States into Canada. The partners will each own 50% of a new company named Gemma Renewable Power, LLC.

    Gemma Renewable Power LLC will annually provide engineering, procurement and construction services for more than an estimated 300MW of wind farms including design and construction of roads, foundations, and electrical collection system, as well as the erection of towers, turbines and blades. The new venture shall also assist with some of the ongoing servicing of the wind farms.

    Invenergy Wind LLC is executing one of the largest wind energy development programs in the industry. Invenergy Wind’s focus is on the development and long-term ownership and operation of utility scale wind projects ranging in size from 25 to 500 MW. Invenergy Wind currently has in excess of 50 projects in active development in the United States, Canada and Europe and has secured 1,500 MW of wind turbines from General Electric for deliveries in 2008 and 2009.

    Gemma Power Systems is a leading power plant designer and builder with expertise in the rapidly growing alternative fuel industry. Gemma provides a full range of development, consulting, engineering, procurement, construction, commissioning and maintenance services. A substantial amount of Gemma’s backlog, including this joint venture, is geared toward the renewable energy sector. In total, Gemma has managed the engineering, procurement and construction of more than 9,000 MW of power-generating capacity.

    Rainer Bosselmann, Chairman and Chief Executive Officer of Argan, stated, “This joint venture not only enhances our positioning in the alternative energy space, but also provides a new potential revenue stream. Gemma’s project management and construction capabilities and decades of industry experience are well suited to the requirements of this project and we look forward to working with Invenergy.”

    “Invenergy is very excited about entering into this agreement with Gemma,” Pat West, Sr. Vice President of Technical Services for Invenergy stated. “This joint venture greatly adds to our construction and maintenance capabilities and further enhances our position as a leading developer and operator of wind generation.”

    About Argan

    Argan is a publicly traded holding company focusing on companies that provide products and services to growth industries. Argan’s primary business is focused on designing and building traditional gas fired energy plants as well as power plants for the rapidly growing alternative energy sector through its Gemma Power Systems subsidiary. Argan has two other subsidiaries: Southern Maryland Cable, Inc., which provides inside premise wiring services to the federal government including military installations and government office sites requiring high-level security clearance and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers; and Vitarich Laboratories, a farm to market, vertically integrated private label manufacturer that manufactures, packages and distributes premium nutraceutical products, including nutritional and whole food dietary supplements and other personal healthcare products.

    This press release contains forward-looking statements. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” or similar expressions are intended to identify “forward-looking statements.” Argan’s financial and operational results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company’s plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company’s most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review risks and uncertainties described in documents that the Company files with the Securities and Exchange Commission.

     

     

     

    Date:       May 22, 2008
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    Argan, Inc.’s Wholly Owned Subsidiary Gemma Power Systems Signs EPC Agreement For $340 Million Contract.

    May 22, 2008 — Rockville, MD – Argan, Inc. (AMEX: AGX) announced that its wholly owned subsidiary, Gemma Power Systems, has signed an Engineering, Procurement and Construction Agreement (EPC) with Pacific Gas and Electric Company (PG&E) for an approximately $340 million contract to design and build a natural gas-fired, combined cycle, power plant in Colusa County, California. The Colusa facility will be a 640 MW 2X1 combined cycle facility with a planned completion date of summer 2010.

    Rainer Bosselmann, Chairman and Chief Executive Officer of Argan, stated, “Gemma has unique expertise building this size 2X1 combined power plant, having completed multiple facilities of this type to date. Gemma’s project management and construction capabilities and decades of industry experience position us well for the successful, on-time completion of this new power plant.”

    Argan announced the receipt of an interim notice to proceed on the Colusa project from PG&E in December 2007, since which time the Company has been in the process of designing, procuring major components, and planning the construction of the facility.

    About Argan

    Argan is a publicly traded holding company focusing on companies that provide products and services to growth industries. Argan’s primary business is designing and building energy plants for the rapidly growing alternative energy sector through its Gemma Power Systems subsidiary. Argan has two other subsidiaries: Southern Maryland Cable, Inc., which provides inside premise wiring services to the federal government including military installations and government office sites requiring high-level security clearance and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers; and Vitarich Laboratories, a farm to market, vertically integrated private label manufacturer that manufactures, packages and distributes premium nutraceutical products, including nutritional and whole food dietary supplements and other personal healthcare products.

    This press release contains forward-looking statements. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” or similar expressions are intended to identify “forward-looking statements.” Argan’s financial and operational results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company’s plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company’s most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the Securities and Exchange Commission.

     

     

     

    Date:       April 25, 2008
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    ARGAN, INC. ANNOUNCES FOURTH QUARTER AND YEAR END RESULTS

    Click Here to view financial statements.

    April 25, 2008 — Rockville, MD — Argan, Inc. (Amex: AGX) today announced financial results for the fourth quarter and year ended January 31, 2008.

    Net sales for the year ended January 31, 2008 were $206.8 million compared to $68.9 million for the year ended January 31, 2007. Gemma Power Systems, acquired in December 2006, contributed $180.4 million in revenues for the year ended January 31, 2008. Revenue for the year ended January 31, 2008 at Vitarich Laboratories (VLI) decreased to $16.7 million from $20.8 million in the year ended January 31, 2007 and Southern Maryland Cable (SMC) revenues for the year ended January 31, 2008 declined to $9.7 million from $14.3 million in the year ended January 31, 2007. Net loss for the year ended January 31, 2008 was $3.2 million or $0.29 per fully diluted share based on 11,097,000 fully diluted shares outstanding, compared to a net loss of $113,000, or $0.02 per fully diluted share based on 5,338,000 shares outstanding in the year ended January 31, 2007.

    During the year ended January 31, 2008, the Company conducted valuations of its operating subsidiaries. Both Gemma Power Systems and SMC’s valuations exceeded their carrying values. The Company’s analysis of VLI operations indicated that its carry value of goodwill and intangible assets were impaired. Based on this analysis, the Company recorded a goodwill impairment loss of $5.6 million, thereby reducing the goodwill related to VLI to an adjusted balance of approximately $921,000 as of January 31, 2008. The Company also recorded intangible asset impairment losses at VLI of $1,181,000 for the year ended January 31, 2008. Of the aforementioned impairment losses related to goodwill and intangible assets, $1.8 million and $341,000, respectively, were recorded in the fourth quarter.

    Net sales for the quarter were $53.9 million compared to $41.7 million for the three months ended January 31, 2007. Gemma Power Systems contributed $49.4 in revenues for the quarter compared to $33.7 in the fourth quarter last year. Revenues for the quarter ended January 31, 2008 at VLI decreased to $2.1 million from $4.6 million in the same quarter last year and revenues at SMC in the current quarter declined to $2.4 million from $3.5 million in the three months ended January 31, 2007. Net loss for the quarter ended January 31, 2008 was $565,000, or $0.05 per fully diluted share based on 11,105,000 shares outstanding, compared to net income of $315,000, or $0.04 per fully diluted share based on 8,414,000 shares outstanding in the fourth quarter of last year.

    The Company believes that its Non-GAAP Measurement of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) provides investors with a valuable supplemental measure of our operating performance. EBITDA for the year ended January 31, 2008 was $13.9 million compared to EBITDA of $4.4 million for the fiscal year ended January 31, 2007. EBITDA for the fourth quarter ended January 31, 2008 was $3.6 million compared to $2.5 million for the comparable quarter last year.

    Gemma’s backlog was $122 million as of January 31, 2008. This backlog number does not include the value of approximately $340 million in potential construction work for a power plant project in Colusa, California. During the fourth quarter, Gemma received an interim notice to proceed from Pacific Gas & Electric (PG&E) to design and build a natural gas-fired, combined cycle power plant in Colusa, and we expect to receive in the near term the final notice to proceed.

    Commenting on the results for the quarter and the year, Rainer Bosselmann, Chairman and Chief Executive Officer stated, “Fiscal 2008 was a transformative year for Argan in which we began to drive significant cash flow. Gemma generated 87% of our revenues and experienced strong cash flow performance with approximately $16.8 million in EBITDA. Demand for Gemma’s services remains strong as we head into the new fiscal year. The economy is highly dependant on affordable and reliable electricity and Gemma’s broad based experience building a wide range of power plants positions the company favorably. “

    Mr. Bosselmann continued, “At our two smaller subsidiaries, VLI and SMC, we reported a decrease in revenues for the quarter and for the year. While their combined sales account for only 13% of our overall revenues, we were not satisfied with this performance and are focused on improving their results in fiscal 2009.”

    About Argan, Inc.

    Argan is a publicly traded holding company focusing on companies that provide products and services to growth industries. Argan’s primary business is designing and building energy plants for the rapidly growing alternative energy sector through its Gemma Power Systems subsidiary. Argan has two other subsidiaries: Southern Maryland Cable, which provides inside premise wiring services to the federal government including military installations and government office sites requiring high-level security clearance and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers; and Vitarich Laboratories, a farm to market, vertically integrated private label manufacturer that manufactures, packages and distributes premium nutraceutical products, including nutritional and whole food dietary supplements and other personal healthcare products.

    This press release contains forward-looking statements. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” or similar expressions are intended to identify “forward-looking statements.” Argan’s financial and operational results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company’s plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company’s most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the Securities and Exchange Commission.

     

     

     

    Date:       February 19, 2008
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    Argan, Inc. Appoints New Board Member

    Rockville, MD (February 19, 2008) — Argan, Inc. (AMEX: AGX) today announced that Ambassador Henry Crumpton has been appointed to the Company’s Board of Directors effective immediately.

    “Ambassador Crumpton has a distinguished record of service to the United States government including experience in strategic operations and policy development at the highest levels. We are extremely pleased that he has agreed to join Argan’s board and are confident that his knowledge and expertise will contribute significantly to our company,” stated Rainer Bosselmann, Chairman and Chief Executive Officer of Argan.

    Ambassador Crumpton has served the United States government for more than 26 years, most recently working directly for the Secretary of State as the Ambassador-at-Large for Counterterrorism developing, coordinating and implementing U.S. counterterrorism policy in Washington, D.C. and abroad. He joined the CIA in 1981 and served as an operations officer both at headquarters and around the world, including assignments as Chief of Station. Among his many professional postings he has served as Deputy Chief of the International Terrorism Operations Section for the Federal Bureau of Investigation; as Deputy Chief (Operations) of the CIA’s Counterterrorist Center; he led the CIA’s Afghanistan campaign 2001-02 and was the Chief of National Resources Division from 2003-05.

    He is a Distinguished fellow at the EastWest Institute and serves as an advisory board member to the Department of Homeland Security’s Study of Terrorism and Responses to Terrorism (START), a national consortium of universities. Ambassador Crumpton is the recipient of numerous awards including among others: the Intelligence Commendation Medal; the George H.W. Bush Award for excellence in counterterrorism and the Distinguished Intelligence Medal, the CIA’s highest award for achievement.

    About Argan

    Argan is a publicly traded holding company focusing on companies that provide products and services to growth industries. Argan’s primary business is designing and building energy plants for the rapidly growing alternative energy sector through its Gemma Power Systems subsidiary. Argan has two other subsidiaries: Southern Maryland Cable, Inc., which provides inside premise wiring services to the federal government including military installations and government office sites requiring high-level security clearance and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers; and Vitarich Laboratories, a farm to market, vertically integrated private label manufacturer that manufactures, packages and distributes premium nutraceutical products, including nutritional and whole food dietary supplements and other personal healthcare products.

    This press release contains forward-looking statements. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” or similar expressions are intended to identify “forward-looking statements.” Argan’s financial and operational results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company’s plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company’s most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the Securities and Exchange Commission.

     

    Date:       December 17, 2007
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    ARGAN, INC. ANNOUNCES THIRD QUARTER AND NINE MONTH RESULTS

    December 17, 2007 — Rockville, MD — Argan, Inc. (Amex: AGX) today announced financial results for the third quarter and nine months ended October 31, 2007.

    Click Here to view financial statements.

    Third Quarter and Nine Months Results

    Net sales for the quarter were $49.3 million compared to $9.6 million for the three months ended October 31, 2006. Gemma Power Systems, acquired in December 2006, contributed $42 million in revenues for the quarter ended October 31, 2007. Revenues for the quarter ended October 31, 2007 at Vitarich Laboratories (VLI) decreased to $4.6 million from $5.2 million in the same quarter last year and revenues at Southern Maryland Cable (SMC) declined to $2.6 million from $4.4 million in the nine months ended October 31, 2007 and 2006, respectively. Net loss for the quarter ended October 31, 2007 was $1.96 million, or $0.18 per fully diluted share based on 11,096,000 fully diluted shares outstanding, compared to a net loss of $255,000, or $0.06 per fully diluted share based on 4,574,000 fully diluted shares outstanding in the third quarter of last year.

    During the quarter, the Company conducted an analysis of the operations of Vitarich Laboratories (VLI) in order to identify any impairment in the carrying value of the goodwill related to this business. Based on this analysis, the Company recorded a goodwill impairment loss of $3.8 million during the third quarter, thereby reducing the goodwill related to VLI to an adjusted balance of approximately $2.7 million as of October 31, 2007. The Company also recorded intangible asset impairment losses at VLI of $840,000.

    Net sales for the nine months ended October 31, 2007 were $153 million compared to $27 million for the nine months ended October 31, 2006. Gemma Power Systems, acquired in December 2006, contributed $131 million in revenues for the nine months ended October 31, 2007. Revenue for the nine months ended October 31, 2007 at VLI decreased to $14.6 million from $16.3 million in the nine months ended October 31, 2006 and SMC revenues declined to $7.3 million from $10.8 million in the nine months ended October 31, 2007 and 2006, respectively. Net loss for the nine months ended October 31, 2007 was $2,640,000, or $0.24 per fully diluted share based on 11,095,000 fully diluted shares outstanding, compared to a net loss of $428,000, or $0.10 per fully diluted share based on 4,312,000 shares outstanding in the nine months ended October 31, 2006.

    The Company believes that the Non-GAAP Measurement of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) provides investors with a valuable supplemental measure of our operating performance. EBITDA for the third quarter ended October 31, 2007 was $5.8 million compared to $371,000 for the comparable quarter last year. EBITDA for the first nine months ended October 31, 2007 was $10.4 million compared to EBITDA of $1.9 million in the first nine months of the last fiscal year.

    Commenting on the quarter, Rainer Bosselmann, Chairman and Chief Executive Officer stated, “Gemma generated 85% of our revenues in the October quarter and it continues to see strong demand building renewable as well as traditional power plants. With our enhanced management team and healthy backlog, we are optimistic about Gemma’s prospects.”

    Mr. Bosselmann continued, “Unfortunately, we experienced revenue declines during the quarter at our two smaller subsidiaries: VLI and SMC. Specifically, VLI’s results were impacted by the loss of one of its largest customers. VLI has added a significant new customer and has also expanded its product offerings to generate increased sales from existing customers. SMC was also adversely affected by the reduction in the level of business from a large customer. This division consistently generates net income, and we expect it to achieve revenue growth in the near term.”

    Click Here to view financial statements.

    About Argan, Inc.

    Argan is a publicly traded holding company focusing on companies that provide products and services to growth industries. Argan’s primary business is designing and building energy plants for the rapidly growing alternative energy sector through its Gemma Power Systems subsidiary. Argan has two other subsidiaries: Southern Maryland Cable, which provides inside premise wiring services to the federal government including military installations and government office sites requiring high-level security clearance and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers; and Vitarich Laboratories, a farm to market, vertically integrated private label manufacturer that manufactures, packages and distributes premium nutraceutical products, including nutritional and whole food dietary supplements and other personal healthcare products.

    This press release contains forward-looking statements. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” or similar expressions are intended to identify “forward-looking statements.” Argan’s financial and operational results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company’s plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company’s most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the Securities and Exchange Commission.

     

     

     

    Date:       December 17, 2007
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    Argan, Inc.’s Wholly Owned Subsidiary Gemma Power Systems Receives Interim Notice to Proceed On $340 Million Contract

    December 17, 2007 — Rockville, MD – Argan, Inc. (AMEX: AGX) announced that its wholly owned subsidiary, Gemma Power Systems, has received an Interim Notice to Proceed from Pacific Gas & Electric Company (PG&E) on an approximately $340 million contract to design and build a natural gas-fired, combined cycle, power plant in Colusa, California. The Colusa facility will be a 640 MW 2X1 combined cycle facility with a planned completion date of August 1, 2010.

    Rainer Bosselmann, Chairman and Chief Executive Officer of Argan, stated, “We are pleased to see continued demand for Gemma’s services and to further enhance the company’s robust backlog with the addition of this contract. Gemma brings specific expertise in the management and construction of this size 2X1 combined cycle power plant, having completed five facilities of this type to date.”

    Argan expects to complete the Engineering, Procurement and Construction (EPC) contract negotiations in January and receive the Full Notice to Proceed by February 2008.

    About Argan

    Argan is a publicly traded holding company focusing on companies that provide products and services to growth industries. Argan’s primary business is designing and building energy plants for the rapidly growing alternative energy sector through its Gemma Power Systems subsidiary. Argan has two other subsidiaries: Southern Maryland Cable, Inc., which provides inside premise wiring services to the federal government including military installations and government office sites requiring high-level security clearance and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers; and Vitarich Laboratories, a farm to market, vertically integrated private label manufacturer that manufactures, packages and distributes premium nutraceutical products, including nutritional and whole food dietary supplements and other personal healthcare products.

    This press release contains forward-looking statements. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” or similar expressions are intended to identify “forward-looking statements.” Argan’s financial and operational results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company’s plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company’s most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the Securities and Exchange Commission.

     

     

     

    Date:       December 3, 2007
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    Argan, Inc. Announces The Passing of Board Member Peter L. Winslow

    Rockville, MD (December 3, 2007) — Argan, Inc. (AMEX: AGX) regretfully announces the passing of board member Peter L. Winslow.

    Mr. Winslow had been a member of Argan’s Board of Directors since June 2003 and was a member of Argan’s audit committee.

    “Peter will be greatly missed by our organization,” said Rainer Bosselmann, Argan’s Chairman and Chief Executive Officer. “He brought to his board role a tremendous depth of professional knowledge and experience and we are appreciative of the excellent counsel and guidance he consistently provided. We extend our sincere condolences to his family.”

    Argan also announces that Board member W.G. Champion Mitchell will assume Mr. Winslow’s responsibilities on Argan’s audit committee. Mr. Mitchell, who is Chairman and Chief Executive Officer of Network Solutions, Inc., has been a Director of Argan since October 2003.

    About Argan

    Argan is a publicly traded holding company focusing on companies that provide products and services to growth industries. Argan’s primary business is designing and building energy plants for the rapidly growing alternative energy sector through its Gemma Power Systems subsidiary. Argan has two other subsidiaries: Southern Maryland Cable, Inc., which provides inside premise wiring services to the federal government including military installations and government office sites requiring high-level security clearance and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers; and Vitarich Laboratories, a farm to market, vertically integrated private label manufacturer that manufactures, packages and distributes premium nutraceutical products, including nutritional and whole food dietary supplements and other personal healthcare products.

     

    Date:       November 19, 2007
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    Argan, Inc.’s Wholly Owned Subsidiary Gemma Power Systems Announced The Discontinuation of Its Previously Announced $190 Million Limited Notice to Proceed Contract

    November 19, 2007 — Rockville, MD – Argan, Inc.’s (AMEX: AGX) wholly owned subsidiary Gemma Power Systems announced the discontinuation of the $190 million limited notice to proceed contract announced on November 12. The cancellation was due to the termination of the power sales agreement between the owner of the plant and the utility. The customer looks forward to working with Gemma on future projects.

    Rainer Bosselmann, Chairman and Chief Executive Officer of Argan, stated, “We are disappointed that this project will not proceed. Nonetheless, Gemma’s current pipeline of backlog and contracts under present negotiation is the strongest it has been in the history of the company, including a potential contract at least as large as the one just cancelled. This bodes well for our ability to add meaningfully to the Company’s healthy backlog going forward.”

    About Argan

    Argan is a publicly traded holding company focusing on companies that provide products and services to growth industries. Argan’s primary business is designing and building energy plants for the rapidly growing alternative energy sector through its Gemma Power Systems subsidiary. Argan has two other subsidiaries: Southern Maryland Cable, Inc., which provides inside premise wiring services to the federal government including military installations and government office sites requiring high-level security clearance and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers; and Vitarich Laboratories, a farm to market, vertically integrated private label manufacturer that manufactures, packages and distributes premium nutraceutical products, including nutritional and whole food dietary supplements and other personal healthcare products.

    This press release contains forward-looking statements. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” or similar expressions are intended to identify “forward-looking statements.” Argan’s financial and operational results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company’s plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company’s most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the Securities and Exchange Commission.

     

     

     

    Date:       November 12, 2007
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    Argan, Inc.’s Wholly Owned Subsidiary Gemma Power Systems Receives Limited Notice to Proceed On $190 Million Contract

    November 12, 2007 — Rockville, MD – Argan, Inc. (AMEX: AGX) announced that its wholly owned subsidiary Gemma Power Systems has received a Limited Notice to Proceed on an approximately $190 million, two-year, target priced contract to design and build a combined cycle, gas-fired power plant.

    Rainer Bosselmann, Chairman and Chief Executive Officer of Argan, stated, “This large contract significantly increases Gemma’s backlog and reflects the considerable ongoing demand we are seeing for Gemma’s services. Gemma brings specific expertise to the construction of this type of facility, having previously built five combined cycle power plants.”

    Argan expects to receive the Final Notice to Proceed agreement by February 2008, subject to negotiation of the Engineering, Procurement and Construction (EPC) contract. The project is anticipated to be completed in the first quarter of 2010.

    About Argan

    Argan is a publicly traded holding company focusing on companies that provide products and services to growth industries. Argan’s primary business is designing and building energy plants for the rapidly growing alternative energy sector through its Gemma Power Systems subsidiary. Argan has two other subsidiaries: Southern Maryland Cable, Inc., which provides inside premise wiring services to the federal government including military installations and government office sites requiring high-level security clearance and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers; and Vitarich Laboratories, a farm to market, vertically integrated private label manufacturer that manufactures, packages and distributes premium nutraceutical products, including nutritional and whole food dietary supplements and other personal healthcare products.

    This press release contains forward-looking statements. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” or similar expressions are intended to identify “forward-looking statements.” Argan’s financial and operational results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company’s plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company’s most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the Securities and Exchange Commission.

     

     

     

    Date:       November 1, 2007
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    Timothy Curran Appointed President and CEO of Gemma Power Systems

    Rockville, MD (November 1, 2007) — Argan, Inc. (AMEX: AGX) today announced the appointment of Timothy F. Curran as President and Chief Executive Officer of its wholly owned subsidiary Gemma Power Systems.

    Mr. Curran joins the current management team of Joel Canino and Bill Griffin, Gemma’s founders and principals. He will be responsible for the day to day operations of Gemma, including execution of the Company’s business strategy and management of the existing backlog of energy plant projects. Messrs. Canino and Griffin will continue as Directors of Gemma Power Systems and as senior level executives.

    Prior to this appointment, Mr. Curran served as President & CEO of ALSTOM, Inc. overseeing the company’s U.S. subsidiaries. Before that, he held senior management positions of increasing responsibility at ABB ALSTOM Power, formerly known as ABB Combustion Engineering.

    Rainer Bosselmann, Chairman and Chief Executive Officer of Argan stated, “We are very pleased to welcome Tim to the Gemma management team. He is an industry veteran, with thirty years’ experience specific to the power generation business.”

    “Gemma has experienced tremendous growth and has a very strong backlog. We believe that the addition of Tim in his new role positions the Company well to effectively capitalize on opportunities for future growth.”

    About Argan

    Argan is a publicly traded holding company focusing on companies that provide products and services to growth industries. Argan’s primary business is designing and building energy plants for the rapidly growing alternative energy sector through its Gemma Power Systems subsidiary. Argan has two other subsidiaries: Southern Maryland Cable, Inc., which provides inside premise wiring services to the federal government including military installations and government office sites requiring high-level security clearance and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers; and Vitarich Laboratories, a farm to market, vertically integrated private label manufacturer that manufactures, packages and distributes premium nutraceutical products, including nutritional and whole food dietary supplements and other personal healthcare products.

    This press release contains forward-looking statements. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” or similar expressions are intended to identify “forward-looking statements.” Argan’s financial and operational results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company’s plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company’s most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the Securities and Exchange Commission.

     

     

     

    Date:       September 13, 2007
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    Net sales for the quarter were $53.1 million compared to $8.6 million for the three months ended July 31, 2006. Gemma Power Systems, acquired in December 2006, contributed $45.6 million in revenues for the quarter ended July 31, 2007. Revenue for the quarter ended July 31, 2007 at Southern Maryland Cable (SMC) declined to $2.5 million from $3.3 million in the same quarter last year and revenue at Vitarich Laboratories, Inc. (VLI) decreased to $5.0 million from $5.2 million. Net income for the quarter ended July 31, 2007 was $1.3 million, or $0.12 per fully diluted share based on 11,196,000 fully diluted shares outstanding, compared to a net loss of $155,000, or $0.03 per fully diluted share based on 4,549,000 fully diluted shares outstanding in the second quarter of last year.

    Net sales for the six months ended July 31, 2007 were $103.6 million compared to $17.5 million for the six months ended July 31, 2006. Gemma Power Systems, acquired in December 2006, contributed $88.6 million in revenues for the first six months ended July 31, 2007. Revenue for the six months ended July 31, 2007 at SMC declined to $4.6 million from $6.5 million in the six months ended July 31, 2006 and revenue at VLI decreased to $10 million from $11 million. Net loss for the six months ended July 31, 2007 was $681,000, or $0.06 per fully diluted share based on 11,196,000 fully diluted shares outstanding, compared to a net loss of $173,000, or $0.04 per fully diluted share based on 4,179,000 shares outstanding in the six months ended July 31, 2006.

    The Company believes that the Non-GAAP Measurement of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) provides investors with a valuable supplemental measure of our operating performance. EBITDA for the second quarter ended July 31, 2007 was $4.8 million compared to $727,000 for the comparable quarter last year. EBITDA for the first six months ended July 31 2007 was $4.4 million compared to EBITDA of $1.5 million in the first six months of the last fiscal year.

    Cash and cash equivalents at July 31, 2007 increased to $49.1 million from $161,000 at July 31, 2006.

    Rainer Bosselmann, Chairman and Chief Executive Officer stated, “Demand at Gemma continued to be very strong and our backlog at July 31 was $205 million compared to $171 million at January 31, 2007. With 86% of our revenues in the quarter coming from Gemma, we are very well positioned to continue to benefit from the increasing demand for energy power plants. Furthermore, we made progress driving improved performance at both our SMC and VLI subsidiaries compared to the first quarter of this fiscal year. ”

    Mr. Bosselmann continued, “During the quarter, we continued to experience an unexpected increase in costs related to one of our Gemma contracts. This contract has resulted in an expected loss of $8.2 million as of July 31, 2007. At this point, the project is 99% complete.”

    About Argan

    Argan is a publicly traded holding company focusing on companies that provide products and services to growth industries. Argan’s primary business is designing and building energy plants for the rapidly growing alternative energy sector through its Gemma Power Systems subsidiary. Argan has two other subsidiaries: Southern Maryland Cable, Inc., which provides inside premise wiring services to the federal government including military installations and government office sites requiring high-level security clearance and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers; and Vitarich Laboratories, a farm to market, vertically integrated private label manufacturer that manufactures, packages and distributes premium nutraceutical products, including nutritional and whole food dietary supplements and other personal healthcare products.

    This press release contains forward-looking statements. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” or similar expressions are intended to identify “forward-looking statements.” Argan’s financial and operational results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company’s plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company’s most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the Securities and Exchange Commission.

    Click here to view Condensed Consolidated Statements of Operation and Condensed Consolidated Balance Sheets.

     

     

     

    Date:       August 30, 2007
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    Rockville, MD (August 30, 2007) — Argan, Inc. (AMEX: AGX) announced that its Board of Directors authorized the voluntary delisting of its securities from the Boston Stock Exchange. The Company’s common shares will continue to trade on the American Stock Exchange.

    Rainer Bosselmann, Chairman and Chief Executive Officer stated, “Given our August 22 upgrade to the American Stock Exchange from the Bulletin Board, we do not believe that it is necessary to maintain a listing on the Boston Stock Exchange and incur the additional listing fees and duplicative compliance burdens.”

    The withdrawal from the Boston Stock Exchange is expected to be effective ten days following the filing of Form 25 with the Securities and Exchange Commission. The Company expects this to take place the week of September 3, 2007.

    About Argan

    Argan is a publicly traded holding company focusing on companies that provide products and services to growth industries. Argan’s primary business is designing and building energy plants for the rapidly growing alternative energy sector through its Gemma Power Systems subsidiary. Argan has two other subsidiaries: Southern Maryland Cable, Inc., which provides inside premise wiring services to the federal government including military installations and government office sites requiring high-level security clearance and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers; and Vitarich Laboratories, a farm to market, vertically integrated private label manufacturer that manufactures, packages and distributes premium nutraceutical products, including nutritional and whole food dietary supplements and other personal healthcare products.

    This press release contains forward-looking statements. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” or similar expressions are intended to identify “forward-looking statements.” Argan’s financial and operational results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company’s plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company’s most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the Securities and Exchange Commission.

     

     

     

    Date:       August 22, 2007
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    NEW YORK, August 22, 2007 — The American Stock Exchange® (Amex®) today lists the common stock of Argan, Inc. under the ticker symbol AGX.

    The company is a holding company that conducts operations through the three subsidiaries: Gemma Power Systems, LLC, which was acquired December 2006 and is the Company’s core business, provides engineering, procurement and construction services to the power industry; Southern Maryland Cable, Inc., acquired J uly 2003, provides telecommunications infrastructure services and Vitarich Laboratories, Inc., acquired August 2004, manufactures, packages, and distributes dietary and nutritional supplements.

    “We are pleased to welcome Argan, Inc. to the American Stock Exchange,” said John McGonegal, Senior Vice President of the Amex’s Equities Group. “We look forward to providing Argan with the value-added services to increase their visibility.”

    Rainer Bosselmann, Chairman and Chief Executive Officer of Argan stated, “Argan’s listing on Amex is a significant milestone reflecting our growth and increased scale as a public company. We believe that our presence on a national exchange will raise investor awareness and enhance our shareholder base.”

    The specialist for Argan, Inc. will be AGS Specialist Partners. For further information on AGX and other Amex-listed companies, please visit www.amex.com.

    About American Stock Exchange

    The American Stock Exchange® (Amex®) offers trading across a full range of equities, options and exchange traded funds (ETFs), including structured products and HOLDRSSM. In addition to its role as a national equities market, the Amex is the pioneer of the ETF, responsible for bringing the first domestic product to market in 1993. Leading the industry in ETF listings, the Amex lists 337 ETFs to date. The Amex is also one of the largest options exchanges in the U.S., trading options on broad-based and sector indexes as well as domestic and foreign stocks. For more information, please visit www.amex.com.

     

     

     

    Date:       August 21, 2007
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    Argan, Inc. to Trade on American Stock Exchange

    Shares to Begin Trading August 22 Under Trading Symbol AGX

    August 21, 2007 — Rockville, MD – Argan, Inc. (OTCBB: AGAX), today announced that its common stock has been approved for listing on the American Stock Exchange (AMEX) and is expected to commence trading under the trading symbol “AGX” effective with the opening of the market on August 22, 2007.

    Rainer Bosselmann, Chairman and Chief Executive Officer stated, “Argan’s listing on AMEX is a significant milestone reflecting our growth and increased scale as a public company. Our December 2006 merger with Gemma Power Systems, a leading designer and builder of alternative energy power plants, positively transformed our revenue and cash flow and squarely positioned us in this important and rapidly growing sector. We enter the AMEX on strong financial footing; our April 30, 2007 backlog was $200 million and the Company’s balance sheet continues to improve with increased liquidity. We expect the listing to further raise investor awareness and help enhance our shareholder base and look forward to a long and thriving future with AMEX.”

    The listing is contingent upon the Company being in compliance with all applicable listing standards on the date it begins trading on AMEX and may be rescinded if the Company is not in compliance with such standards.

    About Argan

    Argan is a publicly traded holding company focusing on companies that provide products and services to growth industries. Argan’s primary business is designing and building energy plants for the rapidly growing alternative energy sector through its Gemma Power Systems subsidiary. Argan has two other subsidiaries: Southern Maryland Cable, Inc., which provides inside premise wiring services to the federal government including military installations and government office sites r equiring high-level security clearance and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers; and Vitarich Laboratories, a farm to market, vertically integrated private label manufacturer that manufactures, packages and distributes premium nutraceutical products, including nutritional and whole food dietary supplements and other personal healthcare products.

    This press release contains forward-looking statements. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” or similar expressions are intended to identify “forward-looking statements.” Argan’s financial and operational results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company’s plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company’s most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the Securities and Exchange Commission.

     

     

     

    Date:       April 30, 2007
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    April 30, 2007 — Rockville, MD- Argan, Inc. (OTCBB: AGAX) today announced financial results for the fourth quarter and fiscal year ended January 31, 2007.

    Net sales for the year were $68.9 million compared to $28.5 million for the year ended January 31, 2006. Net sales for the quarter were $41.7 million compared to $7.3 million for the quarter ended January 31, 2006. Gemma Power Systems, acquired in December 2006, contributed $33.7 million in revenues for the year and the quarter. Net loss for the year was $(113,000), or $(0.02) per share based on 5,338,000 weighted average shares outstanding, compared to a net loss of $9.5 million, or $(2.76) per share based on 3,439,000 weighted average shares outstanding. Net income for the quarter was $315,000 or $0.04 per share based on 8,414,000 shares outstanding compared to a net loss of $6.8 million or $(1.79) per share based on 3,814,000 shares outstanding.

    The Company believes that the Non-GAAP Measurement of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) provides investors with a valuable supplemental measure of our operating performance. EBITDA for the year ended January 31, 2007 was $4.2 million compared to a deficit of $7.4 million for the year ended January 31, 2006. EBITDA for the quarter ended January 31, 2007 was $2.5 million compared to a deficit of $6.5 million for the quarter ended January 31, 2006.

    The Company enters fiscal 2008 with a significantly improved balance sheet. Working capital at January 31, 2007 increased to $12.5 million from $1.5 million at January 31, 2006. The Company calculates working capital by subtracting current liabilities from current assets on the balance sheet. Furthermore, cash and cash equivalents increased to $25.4 million from $5,000 the previous year.

    Rainer Bosselmann, Chairman and Chief Executive Officer stated, “This has been a transformative year for our Company. In December, we completed our merger with Gemma Power Systems, a leading power plant designer and builder with expertise in the rapidly growing alternative fuel industry. This acquisition has significantly increased the growth and profitability of our business.”

    “One attribute that attracted us to Gemma was their technology agnostic approach. The alternative energy market is evolving quickly with the introduction of many different types of renewable energy. Gemma has the capability to build virtually any type of power plant, whether it is a 108 million gallons/year ethanol production facility in Nebraska or a 40 million gallons/year biodiesel plant in Houston. Therefore, we are not dependent upon one particular type of renewable energy. Rather, we will benefit from the long-term increase in the number of new power plants; growth that will be driven by the economic viability of renewable energy, government mandates, and environmental benefits.”

    Mr. Bosselmann continued, “Additionally, our other subsidiaries, Southern Maryland Cable and Vitarich Laboratories, both saw double digit revenue growth. Southern Maryland Cable, which primarily provides inside plant, premise wiring services to the Federal Government requiring high level government security, saw particularly strong growth of 33% because of higher revenue from our business with EDS and Verizon. Vitarich, our nutraceutical business, is well positioned to capitalize on the public focus on nutrition and to actively grow its customer base through distribution channels that include network marketing companies, health food store chains, major retailers, electronic television retailers, and mail order supplement companies.”

    Mr. Bosselmann concluded, “We head into fiscal 2008 with a healthy backlog at Gemma in excess of $171 million, solid performance at our two other subsidiaries, and poised to demonstrate increased profitability.”

    About Argan
    Argan is a publicly traded holding company focusing on companies that provide products and services to growth industries. Argan’s primary business is designing and building energy plants for the rapidly growing alternative energy sector through its Gemma Power Systems subsidiary. Argan has two other subsidiaries: Southern Maryland Cable, Inc., which provides inside premise wiring services to the federal government including military installations and government office sites requiring high-level security clearance and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers; and Vitarich Laboratories, a farm to market, vertically integrated private label manufacturer that manufactures, packages and distributes premium nutraceutical products, including nutritional and whole food dietary supplements and other personal healthcare products.

    This press release contains forward-looking statements. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” or similar expressions are intended to identify “forward-looking statements.” Argan’s financial and operational results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company’s plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company’s most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the Securities and Exchange Commission.

     

    Date:       December 8, 2006
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    Argan Completes Merger of Gemma Power Systems, A Leader in Alternative Energy Power Plants

    Gemma’s 2007 Backlog Exceeds $200 Million –

    Company Simultaneously Completes Institutional Private Placement With Investors Including: Allen & Company, LLC; Main Street Resources; Perennial Investors, LLC; Richard L. Scott Investments, LLC and Whitney Green River Fund

    Rockville, MD — December 8, 2006 — Argan, Inc. (OTC: AGAX; BSE: AGX) announced the merger of Gemma Power Systems, LLC., a leading powerplant builder with expertise in the rapidly growing alternative fuel industry including biodiesel, ethanol and other power energy systems.

    Gemma currently has a backlog of over $200 million which the Company expects to realize over the next 16 months.

    Rainer Bosselmann, Chairman and CEO of Argan, stated, “This merger substantially increases our revenue, enhances Argan’s cash flow and positions us for profitability in 2007. Gemma’s robust backlog is the result of their excellent reputation in the power industry and focus on the high growth alternative power sector. This growth is being driven by technology advancements that are making alternative energies that combat global warming economically viable. A substantial portion of Gemma’s backlog is geared toward this sector, including some of the most innovative and important alternative energy plant projects in the United States such as a 108 million gallons/year ethanol production facility in Nebraska and a 40 million gallons/year biodiesel plant in Houston. The principals of Gemma, Joel Canino and Bill Griffin, are very well respected in their field and we welcome them and their employees to Argan.”

    The purchase price of the merger is $25,000,000, with 55% of the transaction being paid in stock and 45% in cash. In conjunction with the signing of the merger, Argan closed a private placement of 2.9 million common shares with institutional investors including: Allen & Company, LLC and some of its affiliates; Main Street Resources; Perennial Investors, LLC; Richard L. Scott Investments, LLC; and Whitney Green River Fund. Argan will issue a total of 6.6 million shares in this transaction.

    Gemma, headquartered near Hartford, CT, provides the full range of development, consulting, engineering, procurement, construction, start-up, operation and maintenance services to the energy market. The Company has a broad range of experience including boiler plants, cogeneration facilities, wood fired power plants, wind plants and other alternative fuel powered facilities. Customers include public utilities, independent power project owners, municipalities, public institutions and private industry. Gemma will operate as a wholly owned subsidiary of Argan.

    About Argan

    Argan is a publicly traded holding company focusing on companies that provide products and services to growth industries. Southern Maryland Cable Inc., a wholly owned subsidiary of Argan, provides inside premise wiring services to the federal government and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers. Argan has another wholly owned subsidiary, Vitarich Laboratories, a farm to market, vertically integrated contract private label manufacturer of premium nutraceutical products, including nutritional and whole-food dietary supplements and other personal health products.

    For more information go to www.smcinc.biz for SMC information and to www.vitarichlabs.com for more information on Vitarich Laboratories.

    This news release contains forward-looking statements, including statements regarding the Company’s plans and expectations, including the prospects of Gemma Power Systems and its effects on the Company’s cash flow and profitability. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could cause such a difference include, without limitation, the risk that Gemma’s backlog may not be realized; general risks associated with Gemma’s business, product development, manufacturing and reputation; general risks associated with the alternative energy business and technological advancements; as well as other risks set forth in the Company’s filings with the Securities and Exchange Commission. The forward-looking statements contained herein speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based.

    Company Contact: Rainer Bosselman/Arthur Trudel 301.315.0027

    Investor Relations Contact John Nesbett/Jennifer Belodeau Institutional Marketing Services (IMS) 203.972.9200

     

     

     

    Date:       August 17, 2006
    From:       Argan, Inc.
    Contact:   Rainer Bosselmann and Arthur Trudel
    Phone:     301-315-0027

    ARGAN ANNOUNCES PROPOSED MERGER

    Argan, Inc. (OTC BB; BSE: AGAX.OB; AGX) has entered into a Letter of Intent detailing its proposed merger with Gemma Power Systems, LLC (Gemma). Gemma is engaged in the engineering and construction of biodiesel, ethanol and other power energy systems. Gemma has anticipated revenue of $90 million for the current year and $200 million in backlog.

    Rainer Bosselmann, Chairman and Chief Executive Officer of Argan, Inc., stated that “Our shareholders will benefit from access to a very experienced and committed management team and exposure to state-of-the-art biofuel refining technology in the rapidly growing alternative fuels sources industry.” Mr. Bosselmann remarked, “I am delighted to welcome Gemma’s Principals – Messrs. Joel Canino and Bill Griffin and their dedicated employees to the Argan investors’ team. Gemma has a broad range of experience in the engineering and construction of power systems, including the engineering and construction of boiler plants, cogeneration facilities, wood fired power plants, wind plants and other alternative fuel powered facilities.” Gemma has approximately $200 million in backlog which it plans to construct during the next twenty-four months. Gemma is headquartered near Hartford, Connecticut.

    The consummation of this proposed merger is contingent upon the completion of due-diligence, the negotiation and signing of a definitive purchase and sale agreement and the approval of both companies’ boards of directors and other conditions. Bill Griffin and Joel Canino have agreed to continue guiding the operations of Gemma, which will operate as a wholly owned subsidiary of Argan.

    This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein, including the development plans of the Company, are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

     

     

    Date:       July 24, 2006
    From:       Argan, Inc.
    Contact:   Arthur Trudel
    Fax:          301-315-0064
    Phone:     301-315-0027

    ARGAN ANNOUNCES PROPOSED MERGER

    Rockville, MD – Argan, Inc. (OTC BB; BSE: AGAX.OB; AGX) has entered into a Letter of Intent detailing its proposed merger with Supplement and Nutrition Technologies, Inc. (SNT). SNT manufactures, and distributes premium nutraceutical products. The company is headquartered near Phoenix, Arizona.

    Rainer Bosselmann, Chairman and Chief Executive Officer of Argan, remarked, “SNT is the type of entrepreneurial company we want to invest in. This acquisition gives Argan and its wholly owned subsidiary Vitarich additional formulating, manufacturing, packaging and distribution flexibility. The transaction will also give us a West Coast presence, positioning us to expand in a nutraceutical industry that is characterized by rapid growth, fragmentation and opportunities for innovation and consolidation.” In addition he stated, “SNT has a premier management team, led by Flamino Villamil, President and CEO, that has an excellent industry reputation for formulating, manufacturing and distributing premium nutraceutical products.”

    The consummation of this proposed acquisition is contingent upon the completion of due-diligence, the negotiation and signing of a definitive purchase and sale agreement and the approval of both companies’ boards of directors and other conditions. The proposal calls for Flamino Villamil and his management team to continue guiding the operations of SNT, which will operate as a wholly owned subsidiary of Argan.

    This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the a ssumptions underlying the forward-looking statements contained herein, including the development plans of the Company, are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

    Date:       February 1, 2005
    From:       Argan, Inc.
    Contact:   Haywood Miller
    Fax:          301-315-0064
    Phone:     301-315-0027

    ARGAN ANNOUNCES PRIVATE SALE OF SECURITIES

    Rockville, MD – Argan, Inc. (OTC BB; BSE: AGAX.OB; AGX) issued 129,032 shares of common stock at a price of $7.75 per share to MSR I SBIC, L.P. (MSR) in exchange for a $1,000,000 cash investment. The proceeds of the sale will be used for general operating purposes. MSR, headquartered in Westport, CT, is managed by Dan Levinson, a director of Argan, Inc. “This investment of capital at an appropriate valuation will benefit all shareholders,” stated Rainer Bosselmann. The number of shares to be issued to MSR could be adjusted under certain conditions, including the sale of shares at a lower price.

    Argan is a publicly traded holding company, focusing on companies that provide products and services to growth industries. Vitarich Laboratories, a wholly owned subsidiary of Argan located in Naples, FL, is a farm-to-market, vertically integrated contract private label manufacturer of premium nutraceutical products, including nutritional and whole-food dietary supplements and other personal healthcare products. Argan has another wholly owned subsidiary, Southern Maryland Cable, Inc., that provides inside premise wiring services to the federal government and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers.

    For more information on Argan, go to www.arganinc.com and to www.vitarichlabs.com for more information on Vitarich Laboratories. For more information on MSR, go to www.mainstreet-resources.com

    This press release contains certain-forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange act of 1934, as amended. Although Argan believes the assumptions underlying the forward-looking statements contained herein, including the development plans of Argan, are reasonable, any of the assumptions could be inaccurate and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by Argan or any other person that the objectives and plans of Argan will be achieved.

    Date:       November 4, 2004
    From:       Argan, Inc.
    Contact:   Haywood Miller
    Fax:          301-315-0064
    Phone:     301-315-0027

    ARGAN ANNOUNCES PROPOSED MERGER

    Rockville, MD – Argan, Inc. (OTC BB; BSE: AGAX.OB; AGX) has entered into a Letter of Intent detailing its proposed merger with Vitamin Research Products, Inc. Vitamin Research Products is a vertically integrated company that formulates, manufactures, packages and distributes premium nutraceutical products. The company is headquartered in Carson City, Nevada.

    Rainer Bosselmann, Chairman and Chief Executive Officer of Argan, remarked, “Vitamin Research Products is a well-respected name in the nutraceutical industry with an established customer base in the direct-mail and physician-referral distribution channels. This acquisition gives Argan and its wholly owned subsidiary Vitarich additional formulating, manufacturing, packaging and distribution flexibility. The transaction will also give us a West Coast presence, positioning us to expand in a nutraceutical industry that is characterized by rapid growth, fragmentation and opportunities for innovation and consolidation.” In addition he stated, “Vitamin Research Products has a premier management team, led by Robert Watson, President and CEO, that has an excellent industry reputation for formulating, manufacturing and distributing premium nutraceutical products in its new state-of-the-art facility.”

    The consummation of this proposed acquisition is contingent upon the completion of due-diligence, the negotiation and signing of a definitive purchase and sale agreement and the approval of both companies’ boards of directors and other conditions. The proposal calls for Robert Watson and his management team to continue guiding the operations of Vitamin Research Products, which will operate as a wholly owned subsidiary of Argan.

    This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein, including the development plans of the Company, are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

    Date:       September 20, 2004
    From:       Argan, Inc.
    Contact:   Haywood Miller
    Fax:          301-315-0064
    Phone:     301-315-0027

    ARGAN ANNOUNCES VITARICH AWARDED GOOD MANUFACTURING PRACTICES CERTIFICATION – Company Receives “A” Rating from NNFA

    Rockville, MD – Argan, Inc. (OTC BB; BSE: AGAX.OB; AGX) announces today that Vitarich Laboratories, Inc. has been awarded an “A” compliance rating from the National Nutritional Foods Association (NNFA) Good Manufacturing Practices (GMP) Third-Party Certification Program. Vitarich is one of only approximately 50 companies in North America to achieve the Certification.

    “Vitarich is one of a select group of companies that comply with the GMP requirements and it is well positioned to meet any federal GMP standards that may be required of our industry in the future,” says Rainer Bosselmann, Chairman and Chief Executive Officer of Argan. He added, “Our receipt of this GMP Certification assures our customers of our financial and managerial commitment to the highest quality standards and makes Vitarich an attractive source for nutritional companies looking for quality manufacturing partners.”

    The NNFA GMP Certification Program is designed to verify the compliance of its member suppliers of dietary supplements with a standardized set of GMPs developed by the NNFA that comply with or exceed the proposed FDA GMP regulations for dietary supplements. The examination is based on third-party inspection and comprehensive audits in the areas of quality operations, manufacturing and process controls, equipment and sanitation, plant and grounds, personnel, and warehouse, distribution and post-distribution practices.

    The NNFA is the nation’s largest and oldest non-profit organization dedicated to the natural products industry with over 7,500 members, and has implemented the GMP Certification Program to self govern the industry.

    Vitarich Receives “A” Rated GMP Compliance Certification Vitarich Laboratories, a wholly owned subsidiary of Argan located in Naples, FL, is a farm-to-market, vertically integrated contract private label manufacturer of premium nutraceutical products that include nutritional and whole-food dietary supplements and other personal healthcare products.

    For more information on Argan, go to www.arganinc.com and to www.vitarichlabs.com for more information on Vitarich Laboratories.

    This press release contains certain-forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein, including the development plans of the Company, are reasonable, any of the assumptions could be inaccurate and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

     

     

     

    Date:       September 1, 2004
    From:       Argan, Inc.
    Contact:   Haywood Miller
    Fax:          301-315-0064
    Phone:     301-315-0027

    ARGAN ANNOUNCES MERGER WITH VITARICH LABORATORIES

    Rockville, MD – Argan, Inc. (OTC BB; BSE: AGAX.OB; AGX) announced today the closing of its merger with Vitarich Laboratories, Inc. (Vitarich). Vitarich is a farm-to-market, vertically integrated private label manufacturer that manufactures, packages and distributes premium nutraceutical products, including nutritional and whole-food dietary supplements and other personal healthcare products. The company is headquartered in Naples, FL.

    Rainer Bosselmann, Chairman and Chief Executive Officer of Argan, remarked, “Vitarich is the kind of entrepreneurial company we like to invest in. It positions us for entry into the nutraceutical industry that is characterized by rapid growth, fragmentation and opportunities for innovation and consolidation. We will continue to look for investment opportunities in this industry.” In addition he stated, “Vitarich has a premier management team that has an excellent industry reputation for the research, development and manufacture of innovative and premium nutraceutical products in its state-of-the-art facilities.” Vitarich CEO Kevin Thomas says that “the entire Vitarich management team is energized by the combination with Argan and by what it means for the future of the company. The entire Vitarich team will continue our commitment to research, quality products and excellent customer service.” Vitarich has experienced substantial growth over the past few years, growing from $7 million in revenue in calendar year 2000 to approximately $17 million over the past 12 months. For more information see www.vitarichlabs.com. 

    Argan, Inc., headquartered in Rockville, MD, is a farm-to-market, vertically integrated private label manufacturer that manufactures, packages and distributes premium nutraceutical products, including nutritional and whole-food dietary supplements and other personal healthcare products. Diversely, Argan has another wholly owned subsidiary, Southern Maryland Cable, Inc., that provides inside premise wiring services to the federal government and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers.

    This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein, including the development plans of the Company, are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

     

     

     

    Date:       May 20, 2004
    From:       Argan, Inc.
    Contact:   Haywood Miller
    Fax:          301-315-0064
    Phone:     301-315-0027

    ARGAN ANNOUNCES PROPOSED ACQUISITION

    Rockville, MD – Argan, Inc. (OTC BB; BSE: AGAX.OB; AGX) has entered into a Letter of Intent detailing its proposed acquisition of Vitarich Laboratories, Inc. (Vitarich). Vitarich is a farm-to-market, vertically integrated company that manufactures, packages and distributes premium nutraceutical products, including nutritional and whole-food dietary supplements and other personal healthcare products. The company is headquartered in Naples, FL.

    Rainer Bosselmann, Chairman and Chief Executive Officer of Argan, remarked, “Vitarich is the kind of entrepreneurial company we like to invest in. It positions us for entry into the nutraceutical industry that is characterized by rapid growth, fragmentation and opportunities for innovation and consolidation.” In addition he stated, “Vitarich has a premier management team that has an excellent industry reputation for developing and manufacturing innovative and premium nutraceutical products in its state-of-the-art facilities.”

    The consummation of this proposed acquisition is contingent upon the completion of due-diligence, the negotiation and signing of a definitive purchase and sale agreement and the approval of both companies’ boards of directors and other conditions. The proposal calls for Kevin Thomas and his management team to continue guiding the operations of Vitarich, which will operate as a wholly owned subsidiary of Argan.

    This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein, including the development plans of the Company, are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

     

     

     

    Date:     May 13, 2004
    From:       Argan, Inc.
    Contact:   Haywood Miller
    Fax:          301-315-0064
    Phone:     301-315-0027

    ARGAN ANNOUNCES PROPOSED MERGER

    Rockville, MD – Argan, Inc. (OTC BB; BSE: AGAX.OB; AGX) has entered into a Letter of Intent detailing its proposed acquisition of OTC Packaging, Inc. and ProActive Labs, Inc. (OTC). OTC is headquartered in Lithia Springs, GA. The companies market and distribute OTC pharmaceuticals, nutraceuticals, and other healthcare products as well as offer contract packaging services.

    Rainer Bosselmann, Chairman and Chief Executive Officer of Argan, remarked, “OTC is the kind of entrepreneurial company we like to invest in. It positions us for entry into the rapidly growing healthcare industry.” In addition, he stated, “OTC will allow us to pursue growth opportunities in the generic and private label pharmaceuticals market. Coupled with the enormous opportunity presented by the current trend in outsourcing, the contract packaging division will provide significant profit opportunities.”

    The consummation of this proposed merger is contingent upon the completion of a due-diligence analysis, the negotiation and signing of a definitive purchase and sale agreement, approval of both companies’ boards of directors, satisfaction or waiver of certain regulatory requirements and other conditions. The proposal calls for management to remain the same with OTC operating as a wholly owned subsidiary.

    Kim Stratford, President of OTC, stated “this arrangement will provide OTC with the financial resources to fund its rapid growth while simultaneously accomplishing Argan’s goal of increased profitability through expansion into the healthcare industry.”

    This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein, including the development plans of the Company, are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

     

    Date: November 3, 2003
    From: Argan, Inc.
    Contact: Haywood Miller
    Fax: 301-315-0064
    Phone: 301-315-0027

    SHAREHOLDERS APPROVE NAME CHANGE OF PUROFLOW TO ARGAN AND ARGAN ANNOUNCES SALE OF ITS PUROFLOW MANUFACTURING DIVISION

    Rockville, MD – Argan, Inc. (OTC BB; BSE: PFLW.OB; AGX) shareholders approved its name change from Puroflow Incorporated at the October 23, 2003 Shareholders’ meeting and Argan sold, in a cash transaction, its Puroflow manufacturing division to Western Filter Corporation (WFC). WFC is headquartered in Valencia, CA, nearby the Puroflow manufacturing plant in Sun Valley, CA. Rainer Bosselmann, Chairman and Chief Executive of Argan remarked that “the sale of the manufacturing division will provide management with additional resources and time to focus on our more profitable service business.”

    Argan, Inc., headquartered in Rockville, MD, through its wholly owned Southern Maryland Cable, Inc. subsidiary, provides inside premise wiring services to the federal government and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers.

    This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein, including the development plans of the Company, are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

     

     

    Date: October 30, 2003
    From: Argan, Inc.
    Contact: Haywood Miller
    Fax: 301-315-0064
    Phone: 301-315-0027

    SHAREHOLDERS APPROVE NAME CHANGE OF PUROFLOW TO ARGAN AND ARGAN ANNOUNCES DEFINITIVE AGREEMENT TO SELL ITS PUROFLOW MANUFACTURING DIVISION

    Rockville, MD – Argan, Inc. (OTC BB; BSE: PFLW.OB; AGX) shareholders approved its name change from Puroflow Incorporated at the October 23, 2003 Shareholders’ meeting and Argan entered into a definitive agreement with Western Filter Corporation (WFC) to sell its manufacturing division to WFC. WFC is headquartered in Valencia, CA, nearby the Puroflow manufacturing plant in Sun Valley, CA. Rainer Bosselmann, Chairman and Chief Executive of Puroflow remarked that “the sale of the manufacturing division will provide management with additional resources and time to focus on our more profitable service business.” The parties are working to close the transaction as soon as practicable.

    Argan, Inc., headquartered in Rockville, MD, through its wholly owned Southern Maryland Cable, Inc. subsidiary, provides inside premise wiring services to the federal government and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers.

    This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein, including the development plans of the Company, are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

     

    Date: September 3, 2003
    From: Puroflow Incorporated
    Contact: Haywood Miller
    Fax: 301-315-0064
    Phone: 301-315-0027

    PUROFLOW ANNOUNCES PROPOSED SALE OF MANUFACTURING DIVISION

    Rockville, MD – Puroflow Incorporated (OTC BB; BSE: PFLW.OB; AGX) entered into an agreement in principle with Western Filter Corporation (WFC) to sell its manufacturing division to WFC. WFC is headquartered in Valencia, CA, nearby the Puroflow manufacturing plant in Sun Valley, CA. Rainer Bosselmann, Chairman and Chief Executive of Puroflow remarked that “the sale of the manufacturing division will provide management with additional resources and time to focus on our more profitable service business.” The consummation of this proposed transaction is contingent upon the completion of a due-diligence analysis, the signing of a definitive purchase and sale agreement, approval of both Companies’ boards of directors and other conditions.

    Puroflow Incorporated, headquartered in Rockville, MD provides a broad range of products that are sold to aftermarket users in the government, aviation and automotive industries. Aftermarket users include, but are not limited to, original equipment manufacturers, domestic and foreign government and military and commercial users. Its wholly owned subsidiary, Southern Maryland Cable, Inc. provides inside premise wiring services to the federal government and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers.

    This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein, including the development plans of the Company, are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

     

     

     

     

    Date: September 2, 2003
    From: Puroflow Incorporated
    Contact: Haywood Miller
    Fax: 301-315-0064
    Phone: 301-315-0027

    PUROFLOW ANNOUNCES PROPOSED ACQUISITION

    Rockville, MD – Puroflow Incorporated (OTC BB; BSE: PFLW.OB; AGX) entered into a Letter of Intent detailing its proposed acquisition of Dinsmore Communications Corp. (DCC). DCC is headquartered in Seabrook, NH and provides premise design, engineering, installation, certification and maintenance services for commercial and industrial customers. In addition to premise wiring services, DCC also provides multiple dwelling unit connection services to major telecommunications customers. Rainer Bosselmann, Chairman and Chief Executive of Puroflow remarked that “DCC is a first class premise wiring contractor with a long established reputation that will enhance our ability to serve both the commercial and government marketplace. They will also give us geographic diversification that will improve our competitiveness.” The consummation of this proposed transaction is contingent upon the completion of a due-diligence analysis, the signing of a definitive purchase and sale agreement, approval of both Companies’ boar ds of directors and other conditions.

    Puroflow Incorporated, headquartered in Rockville, MD provides a broad range of products that are sold to aftermarket users in the government, aviation and automotive industries. Aftermarket users include, but are not limited to, original equipment manufacturers, domestic and foreign government and military and commercial users. Its wholly owned subsidiary, Southern Maryland Cable, Inc. provides inside premise wiring services to the federal government and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers.

    This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein, including the development plans of the Company, are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

     

     

     

     

    Date: August 4, 2003
    From: Puroflow Incorporated
    Contact: Haywood Miller
    Fax: 301-315-0064
    Phone: 301-315-0027

    PUROFLOW INCORPORATED TO LIST SHARES ON BOSTON STOCK EXCHANGE

    Rockville, MD – Puroflow Incorporated (OTC: PFLW; BSE: AGX) announced that it has been approved for listing on the Boston Stock Exchange (BSE). The common stock will begin trading on the BSE as of August 4, 2003 with the stock symbol “AGX”. The company intends to seek shareholder approval of a name change to Argan, Inc. at its next shareholder meeting and has decided to adopt a new symbol. The company will continue to be traded over-the-counter under the trading symbol “PFLW”. Chairman of the Board Rainer Bosselmann stated, “A listing on the Boston Stock Exchange is a first step towards increasing market liquidity for our shareholders. We also plan to register the shares of our prior private placement as soon as possible to increase shares available to trade on the market.”

    Puroflow Incorporated, headquartered in Rockville, MD, has an operating facility in Sun Valley, CA that provides a broad range of filtration products that are sold to aftermarket users in the aviation and automotive industries. Aftermarket users include, but are not limited to, original equipment manufacturers, domestic and foreign government and military and commercial users.

    In July 2003, Puroflow acquired Southern Maryland Cable which is headquartered near Annapolis, MD and provides inside premise wiring services to the federal government as part of the federal government commitment to Homeland Security improvements. In addition to the growing premise wiring services, Southern Maryland Cable also provides underground and aerial construction services and splicing to major telecommunications and utilities customers.

    This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein, including the development plans of the Company, are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

     

     

     

     

    Date: July 18, 2003
    From: Puroflow Incorporated
    Contact: Haywood Miller
    Fax: 301-315-0064
    Phone: 301-315-0027

    PUROFLOW INCORPORATED ANNOUNCES CLOSING OF ACQUISITION

    Rockville, MD – Today, Puroflow Incorporated announced the closing of its acquisition of Southern Maryland Cable, Inc. Southern Maryland Cable is headquartered near Annapolis, MD and provides inside premise wiring services to the federal government as part of the federal government commitment to Homeland Security improvements. In addition to the growing premise wiring services, Southern Maryland Cable also provides underground and aerial construction services and splicing to major telecommunications and utilities customers. Southern Maryland Cable generated approximately $10 million in revenue over the past 12 months and will operate as a wholly owned subsidiary of Puroflow. Rainer Bosselmann, Chairman and Chief Executive Officer of Puroflow, remarked that “Southern Maryland Cable is the kind of entrepreneurial company that can take advantage of the tremendous growth we are seeing in the government related infrastructure services industry.”

    Puroflow Incorporated, headquartered in Rockville, MD provides a broad range of products that are sold to aftermarket users in the government, aviation and automotive industries. Aftermarket users include, but are not limited to, original equipment manufacturers, domestic and foreign government and military and commercial users.

    This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein, including the development plans of the Company, are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

     

     

     

     

    Date: May 13, 2003
    From: Puroflow Incorporated
    Contact: Haywood Miller
    Fax: 301-315-0064
    Phone: 301-315-0027

    PUROFLOW ANNOUNCES PROPOSED ACQUISITION

    Rockville, MD – Puroflow Incorporated (OTC BB: PFLW.OB) entered into a Letter of Intent detailing its proposed acquisition of Southern Maryland Cable, Inc. (SMC). SMC provides inside premise wiring services to the federal government as part of the federal government commitment to Homeland Security improvements. In addition to the growing premise wiring services, SMC also provides underground and aerial construction services and splicing to major telecommunications and utilities customers. Rainer Bosselmann, Chairman and Chief Executive of Puroflow remarked that “SMC has performed exceedingly well during the past few years and has diversified from primarily outside plant telecommunications and utilities services to inside premise wiring services for the federal government. SMC will continue to focus on opportunities that increased Homeland Security spending provides to first class contractors who have experience with complex and sensitive projects.” The consummation of this proposed transaction is conti ngent upon the completion of a due-diligence analysis, the signing of a definitive purchase and sale agreement, approval of both Companies’ boards of directors and other conditions.

    Puroflow Incorporated, headquartered in Rockville, MD provides a broad range of products that are sold to aftermarket users in the government, aviation and automotive industries. Aftermarket users include, but are not limited to, original equipment manufacturers, domestic and foreign government and military and commercial users.

    This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein, including the development plans of the Company, are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

     

     

     

     

    Date: April 30, 2003
    From: Puroflow Incorporated
    Contact: Rainer Bosselmann – 301-315-0027

    PUROFLOW INCORPORATED COMPLETES PRIVATE OFFERING OF SHARES

    Rockville, MD, April 30, 2003 – Puroflow Incorporated (OTC BB: PFLW.OB) announces that it completed an offering of approximately 1.3 million shares of common stock at a price of $7.75 per share. The proceeds of approximately $10 million from the private placement will be used for acquisitions in growth oriented industries and for working capital. The private placement was approved by shareholder vote on April 15, 2003. Rainer Bosselmann the Company’s incoming Chairman of the Board stated, “I believe that the current market environment provides us with many opportunities to enter other lines of business at attractive valuations which will ultimately increase value to all shareholders.” Mr. Bosselmann is joined by his longtime management team of Haywood Miller as Executive Vice President and Arthur Trudel as Senior Vice President and Chief Financial Officer the Company. Mr. Bosselmann was recently the Chairman of the Board of Arguss Communications, Inc. (NYSE: ACX), a company that built and maintained telec ommunications systems for major telecommunications customers and was sold to Dycom Industries, Inc. (NYSE: DY) in February 2002. He was also the Vice Chairman of the Board and President of Jupiter National, Inc. (AMEX: JPI), a business development company that was sold to Johnson Industries, Inc. (NYSE: JII) in 1996.

    As a condition of the offering, the Company will reconstitute its Board of Directors to include the following members: Rainer Bosselmann, Travis Bradford, Michael Figoff, DeSoto Jordan, Dan Levinson, Kent Pugmire and Jim Quinn.

    Puroflow Incorporated, headquartered in Rockville, MD, has an operating facility in Sun Valley, CA that provides a broad range of filtration products that are sold to aftermarket users in the aviation and automotive industries. Aftermarket users include, but are not limited to, original equipment manufacturers, domestic and foreign government and military and commercial users.

    This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein, including the development plans of the Company, are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

     

     

     

     

    Date: January 2, 2003
    From: Puroflow Incorporated
    Contact: Rainer Bosselmann – 301-315-0027
    and Michael H. Figoff – 818-779-3941

    PUROFLOW INCORPORATED NAMES RAINER BOSSELMANN VICE CHAIRMAN OF THE BOARD OF DIRECTORS

    Sun Valley, CA, January 2, 2003 – Puroflow Incorporated (OTC BB: PFLW.OB) announced that it has named Rainer Bosselmann to its Board of Directors as Vice Chairman. The Chairman of the Board, Travis Bradford, remarked, “we are fortunate to find Mr. Bosselmann and his management team, who have such a strong track record of creating value, available to help us pursue new ways to increase value to Puroflow shareholders.” Rainer Bosselmann stated, “I believe that the current market environment provides us with many opportunities to enter other lines of business at attractive valuations which will ultimately increase value to all shareholders.” Mr. Bosselmann is joined by his longtime management team of Haywood Miller as Executive Vice President and Arthur Trudel as Senior Vice President and Chief Financial Officer the Company. Mr. Bosselmann was recently the Chairman of the Board of Arguss Communications, Inc. (NYSE: ACX), a company that built and maintained telecommunications systems for major telecommunications customers and was sold to Dycom Industries, Inc. (NYSE: DY) in February, 2002. He was also the Vice Chairman of the Board and President of Jupiter National, Inc. (AMEX: JPI), a business development company that was sold to Johnson Industries, Inc. (NYSE: JII) in 1996.

    Puroflow Incorporated, headquartered in Sun Valley, CA provides a broad range of products that are sold to aftermarket users in the aviation and automotive industries. Aftermarket users include, but are not limited to, original equipment manufacturers, domestic and foreign government and military and commercial users.

    This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein, including the development plans of the Company, are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

     

     

     

     

    Date: January 2, 2003
    From: Puroflow Incorporated
    Contact: Rainer Bosselmann – 301-315-0027
    and Michael H. Figoff – 818-779-3941

    PUROFLOW INCORPORATED ANNOUNCES PLANS TO RAISE CAPITAL IN A PRIVATE PLACEMENT

    Sun Valley, CA, January 2, 2003 – Puroflow Incorporated (OTC BB: PFLW.OB) announces that the Company intends to sell up to 1,300,000 shares of common stock at a price of $7.75 per share. The private placement will commence immediately and the Company plans to close the offering by March 31, 2003. The net proceeds received by the Company in the offering will be used to pursue acquisitions or enter into transactions, which the Board believes provide the best potential for growth and profit.

    The common stock offered in the private placement will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.

    This announcement does not constitute an offer to sell or the solicitation of offers to buy any security and shall not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful. A complete description of the terms and conditions of the private placement will be set forth in the Company private placement documents.

    This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein, including the development plans of the Company, are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.