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