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.

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