DALLAS, May 5 /PRNewswire-FirstCall/ -- Arabian American Development Co. (Nasdaq: ARSD), through its subsidiary South Hampton Resources,  today announced that it has signed a five-year agreement to deliver a specialty hydrocarbon blend to a new customer. 

Under terms of the agreement, Arabian American Development Company is currently shipping product to the customer's testing facility. After testing, the Company expects to ramp up the project, with commercial volumes beginning in the fourth quarter of 2011. The commercial contract, which is the final three years of the five-year contract, is valued at approximately $60 million, or $20 million per year, and is based on the current US Dollar, market conditions, anticipated volume requirements and energy costs.

Arabian American will supply the customer's volume requirements for their new process and this represents approximately 16% of total capacity of South Hampton Resources, the Company's specialty petrochemical business, once the commercial portion of the contract commences.

Mark Williamson, Vice President of Marketing for South Hampton Resources, commented, "Our expanded South Hampton production facility has allowed us to capitalize on additional new opportunities in the marketplace, which reflects our focus on growing our business. Our reputation for delivering consistent quality and unequaled customer service along with cost-effective products was instrumental in securing this business. We look forward to a long and mutually beneficial relationship that maximizes our core competencies while providing our new customer with the superior product they require."

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 now a 41% 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 or early 2011 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, 2009.

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.