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    Alon Reports Record Results

    Company yields the fruits of strong refinery performance.

    DALLAS -- Alon USA Energy Inc. announced net income of $27.5 million for the three months ended June 30, 2005, compared to net income of $15.3 million for the three months ended June 30, 2004, an increase of $12.2 million or 79.7 percent -- the highest quarterly income in the company's history. Net income for the six months ended June 30, 2005 was $49.9 million, compared to net income of $16.8 million for the six months ended June 30, 2004, an increase of $33.1 million or 197.0 percent, also the highest six-month period income in the company's history.

    Operating income for the three months ended June 30, 2005 was $49.5 million, compared to operating income of $33.8 million for the three months ended June 30, 2004, an increase of $15.7 million or 46.4 percent. Operating income for the six months ended June 30, 2005, was $93.8 million compared to operating income of $42.6 million for the six months ended June 30, 2004, an increase of $51.2 million or 120.2 percent.

    Dallas-based Alon is an independent refiner and marketer of petroleum products, operating primarily in the Southwestern and South Central regions of the United States. The company also operates convenience stores in West Texas and New Mexico under the 7-Eleven and FINA brand names and supplies motor fuels to these stores from its Big Spring refinery.

    Alon's six-month 2005 results included a gain on disposition of assets which was related to the contribution of three product pipelines and three product terminals to Holly Energy Partners, L.P. ("HEP") in the first quarter of this year. The gain contributed $17.8 million to net income and $29.2 million to operating income for the six months ended June 30, 2005. The HEP transaction also netted Alon approximately $118.0 million in cash. This cash, plus an increase in cash from operating activities to $49.0 million for the six months ended June 30, 2005 compared to $23.9 million for the six months ended June 30, 2004, allowed Alon to retire total debt of $33.8 million in the first six months of this year. As of June 30, 2005, Alon's cash and cash equivalent balance was $168.5 million, which was $10.6 million greater than its total debt balance of $157.9 million.

    The first half 2005 results include the effects of a 25-day major, five- year cycle turnaround completed in the first quarter of this year at which time the Big Spring refinery's crude oil throughput capacity was increased from 62,000 barrels per day to 70,000 barrels per day. Due to the Big Spring refinery expansion, total refinery throughput for the second quarter 2005 increased to a record 72,107 barrels per day compared to 62,578 barrels per day for the second quarter 2004. The second quarter results benefited from an increase in diesel/jet fuel yields compared to gasoline yields in the second quarter when average diesel and jet fuel prices were higher than average gasoline prices. The Big Spring refinery's diesel/jet fuel yields increased to 36.1 percent in the second quarter 2005 compared to diesel/jet fuel yields of 32.2 percent in the second quarter 2004.

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