ALJ Announces 2ND Quarter Earnings

For the six months ended March 31, 2008, ALJ posted net income of $6,802,835 as compared to net income of $3,928,692 for the six months ended March 31, 2007. ALJ is the parent company of KES Acquisition Company dba Kentucky Electric Steel, the owner and operator of a steel mini-mill near Ashland, Kentucky producing both merchant bar quality flats (MBQ Bar Flats), and special bar quality steel flats (SBQ Bar Flats).

ALJ Regional Holdings, Inc.

( in thousands except per share )

2008

2007

6 months Ended Mar. 31

Net Sales

$

82,334

$

73,810

Net Income

6,803

3,929

Per share

0.17

0.10

According to John Scheel, ALJ’s Chief Executive Officer, “Sales volume for the first half of fiscal 2008 was comparable to that of the same period in 2007. Selling prices were higher as a result of continued escalation of scrap, alloys and energy but the margins improved due to the successful efforts at KES to control conversion costs.”

Full financial reports are available at www.pinksheets.com.