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Alpha Natural Resources Completes Acquisition of Nicewonder Coal Group, Syndication of Credit Facili

ABINGDON, Va., Oct. 26 /PRNewswire-FirstCall/ -- Alpha Natural Resources, Inc. (NYSE: ANR - News), a leading Appalachian coal producer, today completed the previously announced acquisition of the Nicewonder coal group for $316.2 million in cash, stock and notes, plus adjustments for working capital. The cash portion of the acquisition is being funded primarily through a $525.0 million refinancing of Alpha's senior secured credit facilities, the closing of which also took place today.

As previously reported, the Nicewonder group is expected to add about 4.3 million tons to Alpha's coal output in 2006, representing an increase of approximately 20 percent over Alpha's projected coal production this year. Alpha expects the acquisition to be accretive to earnings and to enhance the company's operating results and free cash flow generation going forward.

About Alpha Natural Resources

Alpha Natural Resources is a leading producer of high-quality Appalachian coal. Taking into account Alpha's acquisition of Nicewonder, approximately 92 percent of the company's reserve base is high Btu coal and 90 percent is low sulfur, qualities that are in high demand among electric utilities which use steam coal. Alpha is also one of the nation's largest producers and exporters of metallurgical coal, a key ingredient in steel manufacturing. Alpha and its subsidiaries currently operate mining complexes in four states, consisting of 67 mines feeding 11 coal preparation and blending plants. The company and its subsidiaries employ approximately 3,200 people.

ANRG

Forward-Looking Statements

Certain statements in this news release are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Alpha Natural Resources, Inc. ("Alpha" or "the company") uses the words "anticipate," "believe," "could," "should," "estimate," "expect," "intend," "may," "predict," "project," "target" and similar terms and phrases, including references to assumptions, to identify forward-looking statements. These forward-looking statements are based on Alpha's expectations and beliefs concerning future events affecting the company and involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this release. These factors are difficult to accurately predict and may be beyond the control of the company. The following factors are among those that may cause actual results to differ materially from our forward-looking statements: market demand for coal, electricity and steel; our ability to integrate the Nicewonder acquisition into Alpha's existing operations; our ability to maintain an adequate labor force and other employee workforce factors; weather conditions or catastrophic weather-related damage; the company's production capabilities; the company's relationships with, and other conditions affecting its customers; the timing of reductions or increases in customer coal inventories; long-term coal supply arrangements; environmental laws, including those directly affecting Alpha's coal mining and production, and those affecting its customers' coal usage; railroad, vessel and other transportation performance and costs; Alpha's assumptions concerning economically recoverable coal reserve estimates; regulatory and court decisions; future legislation and changes in regulations or governmental policies; uncertainties of pending litigation; changes in postretirement benefit and pension obligations; and Alpha's liquidity, results of operations and financial condition. These and other additional risk factors and uncertainties are discussed in greater detail in the company's Annual Report on Form 10-K and other documents filed with the Securities and Exchange Commission. Forward-looking statements made by the company in this news release or elsewhere speak only as of the date made. New uncertainties and risks come up from time to time, and it is impossible for the company to predict these events or how they may affect the company. The company has no duty to, and does not intend to, update or revise the forward-looking statements in this news release after the date it is issued. In light of these risks and uncertainties, investors should keep in mind that the results, events or developments disclosed in any forward-looking statement made in this news release may not occur.