Monday, July 14, 2003

American Refining Group, Inc. (ARG)

 announces the start up of their new Isomerization Unit  

at the Bradford, PA Refinery.

New Unit to provide the Company with increased capability to produce full range of gasoline products for automotive use

Bradford, PA, July 14, 2003: American Refining, Group, Inc. (ARG) announced today the successful start-up of their new Isomerization Unit, at their Bradford, PA refinery.  The unit which has a throughput capacity of 650 BPD, will be used to upgrade the Company’s current low octane light straight run gasoline blending component to a higher octane material.  This will give ARG the flexibility to produce and market a full range of automotive gasoline products (regular grade, mid-grade and premium).  The project cost exceeded three million dollars ($3.0 million) and was financed in part by funds received from the sale and leaseback of the Company’s main office and Research and Development buildings to the Bradford Economic Development Corporation (BEDC).  Financing for the BEDC transaction included an Enterprise Zone Grant of $250,000, a Pennsylvania Industrial Development Authority (PIDA) loan for $400,000; and a loan from Northwest Savings Bank in the Amount of $400,000.  The bank loan has been guaranteed by the City of Bradford and Bradford and Foster Townships.

Engineering and design of the unit was conducted by Matrix Engineering, Ltd., Dallas, Texas.  Construction was carried out by Highlander Energy Products, Kane, PA.  Instrumentation for the unit was supplied and financed by The Foxboro Company, Cannonsburg, PA.

The project has been in the works for over two years.  Actual construction time was about 20 months.  The project was completed within budget due in large part to the participation of our employees who worked hand-in-hand with Highlander personnel to control costs and to keep the project on schedule.

American Refining Group’s Bradford Refinery is the oldest continuously operating refinery in the United States with roots going back to 1881.  It is the only refinery in the world dedicated solely to processing Pennsylvania Grade Crude Oil.  In addition to gasoline and fuel oil, the refinery produces a complete line of solvent naphthas and distillate solvents under the Kensol® brand, Kendex® brand lubricant baseoils, waxes, and Penn Grade resins, PennzSuppress® brand dust control agent and a variety of other petroleum specialties.  ARG also produces a complete line of BradPenn® lubricants for consumer, commercial and industrial applications and is designated as the Master Distributor for Gulf® branded lubricants in an eleven state region in the northeast.  The Company is also a major producer of private label lubricants which are marketed under nationally recognized consumer and commercial brand names and is a producer of zinc free diesel locomotive engine oils for all of the major railroads east of the Mississippi. 

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