AEI Holding Company, Inc. Announces the Extension of its Offer to Exchange $200,000,000 of the 10% Senior Notes of AEI Holding Company, Inc. for the 10.5% Senior Notes of AEI Resources, Inc. and AEI Holding Company, Inc.

ASHLAND, Ky.--(BUSINESS WIRE)--Dec. 8, 1998--AEI Holding Company, Inc. ("AEI Holding") announced today that it has extended its offer to exchange (the "Exchange Offer") $200,000,000 of AEI Holding's 10% Senior Notes due November 15, 2007 (the "Old Notes") for AEI Holding and AEI Resources, Inc.'s (the "Company") 10.5% Senior Notes due December 15, 2005 (the "Exchange Notes") to 5:00 P.M., New York City Time, on December 11, 1998.

The Exchange Offer was originally set to expire at 5:00 P.M., New York City Time, on December 8, 1998, but has been extended to coincide with the expiration of the Company's offer to sell $150,000,000 in aggregate principal amount of its 11.5% Senior Subordinated Notes due December 15, 2006 (the "Senior Subordinated Notes").

Neither the Exchange Notes nor the Senior Subordinated Notes have been registered under the Securities Act of 1933, as amended, and neither may be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Questions, requests for assistance and requests for copies of the offering memorandum and solicitation statement relating to the Exchange Offer and the Solicitation should be directed to MacKenzie Partners, Inc., the information agent for the Exchange Offer and Solicitation, at [phone] or [phone].