Argan Completes Merger of Gemma Power Systems, A Leader in Alternative Energy Power Plants.

Gemma's 2007 Backlog Exceeds $200 Million

Company Simultaneously Completes Institutional Private Placement With Investors Including: Allen & Company, LLC; Main Street Resources; Perennial Investors, LLC; Richard L. Scott Investments, LLC and Whitney Green River Fund

ROCKVILLE, Md. -- Argan, Inc. (OTC:AGAX; BSE:AGX) announced the merger of Gemma Power Systems, LLC., a leading powerplant builder with expertise in the rapidly growing alternative fuel industry including biodiesel, ethanol and other power energy systems.

Gemma currently has a backlog of over $200 million which the Company expects to realize over the next 16 months.

Rainer Bosselmann, Chairman and CEO of Argan, stated, "This merger substantially increases our revenue, enhances Argan's cash flow and positions us for profitability in 2007. Gemma's robust backlog is the result of their excellent reputation in the power industry and focus on the high growth alternative power sector. This growth is being driven by technology advancements that are making alternative energies that combat global warming economically viable. A substantial portion of Gemma's backlog is geared toward this sector, including some of the most innovative and important alternative energy plant projects in the United States such as a 108 million gallons/year ethanol production facility in Nebraska and a 40 million gallons/year biodiesel plant in Houston. The principals of Gemma, Joel Canino and Bill Griffin, are very well respected in their field and we welcome them and their employees to Argan."

The purchase price of the merger is $25,000,000, with 55% of the transaction being paid in stock and 45% in cash. In conjunction with the signing of the merger, Argan closed a private placement of 2.9 million common shares with institutional investors including: Allen & Company, LLC and some of its affiliates; Main Street Resources; Perennial Investors, LLC; Richard L. Scott Investments, LLC; and Whitney Green River Fund. Argan will issue a total of 6.6 million shares in this transaction.

Gemma, headquartered near Hartford, CT, provides the full range of development, consulting, engineering, procurement, construction, start-up, operation and maintenance services to the energy market. The Company has a broad range of experience including boiler plants, cogeneration facilities, wood fired power plants, wind plants and other alternative fuel powered facilities. Customers include public utilities, independent power project owners, municipalities, public institutions and private industry. Gemma will operate as a wholly owned subsidiary of Argan.

About Argan

Argan is a publicly traded holding company focusing on companies that provide products and services to growth industries. Southern Maryland Cable Inc., a wholly owned subsidiary of Argan, 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. Argan has another wholly owned subsidiary, Vitarich Laboratories, a farm to market, vertically integrated contract private label manufacturer of premium nutraceutical products, including nutritional and whole-food dietary supplements and other personal health products.

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

This news release contains forward-looking statements, including statements regarding the Company's plans and expectations, including the prospects of Gemma Power Systems and its effects on the Company's cash flow and profitability. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could cause such a difference include, without limitation, the risk that Gemma's backlog may not be realized; general risks associated with Gemma's business, product development, manufacturing and reputation; general risks associated with the alternative energy business and technological advancements; as well as other risks set forth in the Company's filings with the Securities and Exchange Commission. The forward-looking statements contained herein speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.