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.
Company Contact: Investor Relations Contact:
Rainer Bosselmann/Arthur Trudel John Nesbett/Jennifer Belodeau
301.315.0027 Institutional Marketing Services (IMS)
203.972.9200 |
