For the six months ended March 31, 2009, ALJ (Pink Sheets: ALJJ) posted a net loss of $130,684 as compared to net income of $6,802,835 for the six months ended March 31, 2008. ALJ is the parent company of KES Acquisition Company dba Kentucky Electric Steel, the owner and operator of a steel mini-mill near Ashland, Kentucky producing both merchant bar quality flats (MBQ Bar Flats), and special bar quality steel flats (SBQ Bar Flats).

According to John Scheel, ALJ’s Chief Executive Officer, “The first half of fiscal 2009 was extremely challenging. In the first quarter, we experienced the normal seasonal declines in both orders and shipments. In the second quarter, we experienced further declines in both orders and shipments due to the continuing poor economic conditions seen industry-wide. Sales volumes for the second quarter and first half of fiscal 2009 were down 44% and 30%, respectively, compared to the same periods in 2008. Despite the lower capacity utilization in the second quarter, our ability to control costs at KES enabled us to increase our operating income over that achieved in the first quarter and to generate sufficient positive net income in the second quarter to nearly offset the net loss incurred in the first quarter. Thus, we have nearly broken even on a net income basis and maintained our operating profitability during this very difficult economic period.”

Full financial reports are available at www.pinksheets.com.

ALJ Regional Holdings, Inc.
Jess Ravich, 310-312-5605