Arabian American Retains Risk Management Firm

Summit Energy to Provide Professional Energy Management Services in Connection With Feedstock Purchases & Hedging Strategy

Jan 26, 2010, 08:30 ET from Arabian American Development Co.

DALLAS, Jan. 26 /PRNewswire-FirstCall/ -- Arabian American Development Co. (Nasdaq: ARSD) today announced that it has retained Summit Energy Services, Inc. to work with senior management of its South Hampton Resources, Inc. subsidiary in developing risk management strategies and feedstock and natural gas hedging solutions for ongoing operations.  The three-year agreement is effective immediately.

Summit is comprised of more than 300 energy professionals in ten international offices managing nearly $20 billion in annualized global energy spend.  Summit will perform an energy risk assessment for South Hampton that will quantify upside and downside natural gas and natural gasoline price risk for South Hampton on a going forward basis. This will be based on an historical assessment of the Company's petrochemical production correlated to forward estimated feedstock consumption and then applying Summit's forecasted price ranges quarter by quarter for 2010 and beyond.  Summit will develop risk management strategies consistent with South Hampton's risk profile that will indicate risk management tools to be used, volume hedging percentages by month, target price levels and other tactical recommendations.  This partnership with Summit will lead the Company to accomplish its risk management goals which is anticipated to help reduce volatility in feedstock costs and improve overall revenue margins.

Nick Carter, President and Chief Executive Officer, commented, "We expect that this disciplined and quantifiable approach conducted by industry experts will significantly mitigate the risk associated with the price fluctuations of our feedstock and enable the company to move forward with future hedging positions to stabilize product margins.  We are delighted to be partnering with Summit and look forward to a mutually beneficial relationship."

Jim Vonderhaar, Vice President from Summit Energy echoed Mr. Carter's sentiment, adding, "We are pleased that the team at Arabian American has placed their trust in Summit to provide energy management leadership. We plan to be worthy of that trust and deliver energy and risk management direction as they address the volatility and complexity of the energy markets.  We look forward to a long and mutually rewarding relationship."

The 3 year agreement is effective immediately and will be up for renewal in 2013.

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.

About Summit Energy

Summit Energy is a pioneering provider of energy management services for business and industry. Summit manages more than $20 billion annually for thousands of facilities in industries ranging from aerospace and automotive to government, chemical, food manufacturing, pharmaceuticals, healthcare and others. Its growing staff of more than 300 energy professionals is headquartered in Louisville, Kentucky. Summit has additional offices in the U.S. as well as in Belgium, France, Germany, Mexico, the Netherlands and the United Kingdom. Summit serves clients with sites all over the globe. For more information, visit www.summitenergy.com

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 Report Forms 10-Q.

Company Contact:

Nick Carter, President and Chief Executive Officer


(409) 385-8300


ncarter@southhamptonr.com



Investor Contact:

Cameron Donahue


Hayden IR


(651) 653-1854


Cameron@haydenir.com


SOURCE Arabian American Development Co.



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