Argan Announces Private Sale of Securities.

ROCKVILLE, Md. -- Argan, Inc. (OTC BB; BSE: AGAX.OB; AGX) issued 129,032 shares of common stock at a price of $7.75 per share to MSR I SBIC, L.P. (MSR) in exchange for a $1,000,000 cash investment. The proceeds of the sale will be used for general operating purposes. MSR, headquartered in Westport, CT, is managed by Dan Levinson, a director of Argan, Inc. "This investment of capital at an appropriate valuation will benefit all shareholders," stated Rainer Bosselmann. The number of shares to be issued to MSR could be adjusted under certain conditions, including the sale of shares at a lower price.

Argan is a publicly traded holding company, focusing on companies that provide products and services to growth industries. Vitarich Laboratories, a wholly owned subsidiary of Argan located in Naples, FL, is a farm-to-market, vertically integrated contract private label manufacturer of premium nutraceutical products, including nutritional and whole-food dietary supplements and other personal healthcare products. Argan has another wholly owned subsidiary, Southern Maryland Cable, Inc., that provides inside premise wiring services to the federal government and also provides underground and aerial construction services and splicing to major telecommunications and utilities customers.

For more information on Argan, go to www.arganinc.com and to www.vitarichlabs.com for more information on Vitarich Laboratories.

For more information on MSR, go to www.mainstreet-resources.com.

This press release contains certain-forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange act of 1934, as amended. Although Argan believes the assumptions underlying the forward-looking statements contained herein, including the development plans of Argan, are reasonable, any of the assumptions could be inaccurate and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate. In light of significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by Argan or any other person that the objectives and plans of Argan will be achieved.