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.

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