Arabian American Announces Filing of Shelf Registration

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Proceeds Expected to Facilitate Revenue Diversification, Expansion

SUGAR LAND, Texas, Aug. 16, 2012 /PRNewswire/ -- Arabian American Development Co. (NYSE: ARSD) today announced that it has filed a shelf registration statement on Form S-3 with the Securities and Exchange Commission (SEC).

Nick Carter, President and Chief Executive Officer, commented, "Our goal is to diversify our product line, broaden our customer base and continue to grow revenues. Our South Hampton Resources facility is nearing capacity, and we have been weighing alternatives for expanding our facility to meet increasing demand. In addition, we have been considering accretive acquisitions which could help us accelerate this expansion and contribute to greater diversification. We believe the shelf registration will allow us the flexibility to achieve our strategic goals and will ultimately increase shareholder value."

This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction. Any offering of the securities covered by the registration statement will only be by means of a prospectus and an accompanying prospectus supplement.

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 37% owner of Al Masane Al Kobra Mining Co., a Saudi Arabian joint stock company.

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, 2011, 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:    

Brett Maas                                          or

Cameron Donahue

Hayden IR                   

Hayden IR

(646) 536-7331             

(651) 653-1854

SOURCE Arabian American Development Co.