Alliance Holdings GP, L.P. Commences Initial Public Offering.

TULSA, Okla. -- Alliance Holdings GP, L.P. ("Alliance Holdings"), which will own a 1.98% general partner interest, 100% of the incentive distribution rights and 15,550,628 common units in Alliance Resource Partners, L.P. (Nasdaq: ARLP), announced today that it will commence an initial public offering of 12,500,000 of its common units. Of this amount, 500,000 units will be sold directly to Joseph W. Craft III, the president, chief executive officer and chairman of the board of directors of the general partner of Alliance Holdings. The offering is being made pursuant to a registration statement on Form S-1 previously filed with the Securities and Exchange Commission.

This offering represents an approximate 20% interest in Alliance Holdings. The underwriters will be granted a 30-day option to purchase up to 1,875,000 additional units.

Once approved, Alliance Holdings intends to list its common units on the Nasdaq National Market under the ticker symbol "AHGP."

Lehman Brothers Inc. will act as sole book-running manager and joint-lead manager along with Citigroup Global Markets Inc. for the offering. In addition, A.G. Edwards & Sons, Inc., UBS Securities LLC, Wachovia Capital Markets, LLC, Raymond James & Associates, Inc., RBC Capital Markets Corporation, Credit Suisse Securities (USA) LLC, and Stifel, Nicolaus & Company, Incorporated will act as co-managers for this offering.

A copy of the prospectus relating to this offering may be obtained from Lehman Brothers Inc., c/o ADP Financial Services, Integrated Distribution Services, 1155 Long Island Avenue, Edgewood, NY 11717, Fax: [phone], email: [e-mail], or from any of the other underwriters.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any State or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State or jurisdiction. The offering may be made only by means of a prospectus.

About Alliance Holdings GP, L.P.

Alliance Holdings GP, L.P. is a limited partnership formed to own and control Alliance Resource Management GP, LLC, the managing general partner of Alliance Resource Partners, L.P., through which it will hold a 1.98% general partner interest and the incentive distribution rights in Alliance Resource Partners, L.P. In addition, Alliance Holdings GP, L.P. will own 15,550,628 common units of Alliance Resource Partners, L.P.

About Alliance Resource Partners, L.P.

Alliance Resource Partners, L.P. is a diversified producer and marketer of steam coal to major United States utilities and industrial users. Alliance Resource Partners, the nation's only publicly traded master limited partnership involved in the production and marketing of coal, is currently the fifth largest coal producer in the eastern United States with operations in all major eastern coalfields. Alliance Resource Partners currently operates underground mining complexes in Illinois, Indiana, Kentucky, Maryland and West Virginia.

Partnership news, unit prices and additional information about Alliance Resource Partners, including filings with the Securities and Exchange Commission, are available at http://www.arlp.com. For more information, contact Alliance Resource Partners investor relations department at 918-295-7674 or via e-mail at [e-mail].