Argan, Inc.'s Wholly Owned Subsidiary Gemma Power Systems Receives Limited Notice to Proceed on $190 Million Contract.

ROCKVILLE, Md. -- Argan, Inc. (AMEX:AGX) announced that its wholly owned subsidiary Gemma Power Systems has received a Limited Notice to Proceed on an approximately $190 million, two-year, target priced contract to design and build a combined cycle, gas-fired power plant.

Rainer Bosselmann, Chairman and Chief Executive Officer of Argan, stated, "This large contract significantly increases Gemma's backlog and reflects the considerable ongoing demand we are seeing for Gemma's services. Gemma brings specific expertise to the construction of this type of facility, having previously built five combined cycle power plants."

Argan expects to receive the Final Notice to Proceed agreement by February 2008, subject to negotiation of the Engineering, Procurement and Construction (EPC) contract. The project is anticipated to be completed in the first quarter of 2010.

About Argan

Argan is a publicly traded holding company focusing on companies that provide products and services to growth industries. Argan's primary business is designing and building energy plants for the rapidly growing alternative energy sector through its Gemma Power Systems subsidiary. Argan has two other subsidiaries: Southern Maryland Cable, Inc., which provides inside premise wiring services to the federal government including military installations and government office sites requiring high-level security clearance and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers; and Vitarich Laboratories, a farm to market, vertically integrated private label manufacturer that manufactures, packages and distributes premium nutraceutical products, including nutritional and whole food dietary supplements and other personal healthcare products.

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