Arabian American Development Signs New Contract With Petrochemical Joint Venture in Middle East

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Contract Expected to Generate $15 - 21 Million over Three-Year Term

DALLAS, Sept. 3 /PRNewswire-FirstCall/ -- Arabian American Development Co. (Nasdaq: ARSD), a leader in the specialty petrochemicals industry, today announced that its petrochemical subsidiary, South Hampton Resources, Inc., has signed a three-year contract with a new customer. This customer is a joint venture between a major European petrochemical manufacturer and a Middle Eastern national petrochemical company. The Company will deliver a volume of over 5 million pounds annually for 100% of the supply of high purity C5's to the joint venture's state-of-the-art polyethylene facility. Product began shipping early in 2009 on a trial basis, and the contract which became effective August 2009, is the result of successful early tests of the product and logistics.

Mark Williamson, Vice President of Marketing for South Hampton Resources commented, "This new contract with the Middle Eastern joint venture demonstrates the increasing success we are experiencing in pursuing international customers. Our expanded South Hampton production facility allows us to capitalize on additional opportunities and expand global market opportunity. With this sale, we expect our international business, including Mexico and Canada, to make up about 20% of total revenues over the next 12 months. We are grateful that this customer has chosen to allow us to provide them with consistent quality premium products which we will deliver with unequaled customer service to their new, world class polyethylene facility.

About Arabian American Development Company (ARSD)

ARSD owns and operates a petrochemical facility located in southeast Texas just north of Beaumont which specializes in high purity petrochemical solvents and other solvent type manufacturing. The Company is also the original developer and an equity investor in a Saudi Arabian joint stock company involving a mining project in the Al-Masane area of Saudi Arabia which is currently under construction. The mine is scheduled to be in production in late 2010 and will produce economic quantities of zinc, copper, gold, and silver.

Safe Harbor

Statements in this release that are not historical facts are forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon management's belief as well as assumptions made by and information currently available to management. Because such statements are based upon expectations as to future economic performance and are not statements of fact, actual results may differ from those projected. These risks, as well as others, are discussed in greater detail in Arabian American's filings with the Securities and Exchange Commission, including Arabian American's Annual Report on Form 10-K for the year ended December 31, 2008 and the Company's subsequent Quarterly Reports on Form 10-Q.

    Company Contact:  Nick Carter, President and Chief Executive Officer
                      (409) 385-8300

    Investor Contact: Cameron Donahue
                      Hayden IR
                      (651) 653-1854

SOURCE Arabian American Development Co.