American Refining Group, Inc.
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Monday, January 15, 2001

American Refining Group announces the formation of a joint venture in China (PRC).

Langfang ARG Specialty Lubricant Oils Co. Ltd. to market Brad Penn® Lubricants and Kensol® and Kendex® Specialties throughout China.

American Refining Group, Inc. (ARG) announced today the formation of a joint venture with Zhongjiashengke Steel Structure Industrial (ZJSK), a subsidiary of Sinopec Engineering Incorporation (SEI) (formerly Beijing Petrochemical and Engineering Company (BPEC)), itself a subsidiary of Sinopec, one of the largest petroleum companies in China. The name of the new company is Langfang ARG Specialty Lubricant Oils Co. Ltd.

According to Harvey L. Golubock, President and COO of ARG, "the new venture, which is the culmination of almost two years of negotiations and planning, will provide ARG with new opportunities in one of the fastest growing markets in the world. The joint venture will supply high quality lubricants and other petroleum specialties to meet the increasing demand for quality products in China. We will serve both the automotive and industrial markets."

While the Sinopec organization has many joint ventures with multi-national companies, this one is unique in that it focuses on a relatively small sector of the market, targeting specialty products. The new joint venture will work closely with ARG’s existing lube oil additive suppliers to formulate products for the Chinese market.

The joint venture will market ARG’s Brad Penn® lubricants and Kensol® and Kendex® petroleum specialties throughout China. Initial requirements will be supplied from ARG’s facilities in the United States with production moving to China as demand increases. It will maintain offices in Beijing and distribution facilities in Langfang Special Economic Zone.

American Refining Group, Inc., headquartered in West Conshohocken, PA, and its related companies is a privately held, diversified energy company with interests in oil refining, oil and gas production, wind energy, biomass technology and cogeneration.