Alon USA Announces Start-Up of Big Spring Refinery in Hydroskimming Mode and Provides Operational Update

DALLAS, April 7 /PRNewswire-FirstCall/ -- Alon USA Energy, Inc. announced today the start-up and continuous operation of its Big Spring Refinery in a 35,000-barrel-per-day hydroskimming mode. The units on line include the crude unit, reformer unit, distillate hydrotreater and jet fuel hydrotreater.

The Company has now returned to the first stage of operation, producing gasoline, diesel and asphalt, as was anticipated by the Company in its latest conference call held on March 6, 2008. Alon has begun the production and sale of non-modified grades of asphalt via truck and rail car. The Company expects to begin production and sale of rubber modified grades of asphalt, excluding ground tire grades, by May 15 and ground tire rubber grades by June 15.

The Company has also now inspected virtually all the equipment in the Fluid Catalytic Cracking Unit (FCCU) and has found no major long-lead equipment that will require replacement.

Jeff D. Morris, Alon's President and Chief Executive Officer, said, "We are pleased with the progress we have made so far in returning the Big Spring refinery to full production. We remain ahead of our own internal schedule, and although we do not yet have a firm schedule for repairing and re-starting the FCCU, our goal remains to have it operational by mid-July. We also have not yet developed a schedule for the alkylation unit or propylene splitters but continue to believe the alkylation unit will start up soon after the FCCU.

"Once again I want to thank all my colleagues at Alon Israel, Alon USA and in Big Spring for their tireless efforts in getting the Big Spring facility back into operation this quickly in an efficient and safe mode."

Alon's Big Spring refinery is located 290 miles west of Dallas in West Central Texas. It employs approximately 170 people and is one of four Alon refineries.

About Alon USA Energy Inc.

Alon USA Energy, Inc., headquartered in Dallas, Texas, is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. The Company owns and operates four sour and heavy crude oil refineries in Texas, California and Oregon, with an aggregate crude oil throughput capacity of approximately 170,000 barrels per day. Alon markets gasoline and diesel products under the FINA brand name and is a leading producer of asphalt. Alon also operates more than 300 convenience stores in West Texas and New Mexico primarily under the 7-Eleven and FINA brand names and supplies motor fuels to these stores from its Big Spring refinery. In addition, Alon supplies approximately 800 additional FINA branded locations.

Any statements in this press release that are not statements of historical fact are forward-looking statements. Forward-looking statements reflect Alon's current expectations regarding future events, results or outcomes, including Alon's expectations regarding the potential damages and planned repairs to the Big Spring refinery. Such statements are based upon current beliefs and expectations of Alon's management and are subject to risks and uncertainties, some of which are beyond Alon's control, which could result in Alon's expectations not being realized. Actual results could differ materially from those expressed in the forward-looking statements contained in this press release because of a variety of factors.

Contacts: Claire A. Hart, Senior Vice President Alon USA Energy, Inc. 972-367-3649 Investors: Jack Lascar/Sheila Stuewe DRG&E / 713-529-6600 Media: Blake Lewis Lewis Public Relations 214-269-2093 Ruth Sheetrit SMG Public Relations 011-972-547-555551