Alliance Holdings GP (AHGP) 8-K Reports Strong First Quarter 2008 Financial Results; and Declares Quarterly Distribution of $0.2875 per Unit

Exhibit 99.1

PRESS RELEASE

	CONTACT: Brian L. Cantrell Alliance Holdings GP, L.P. 1717 South Boulder Avenue, Suite 400 Tulsa, Oklahoma 74119 (918) 295-7673
FOR IMMEDIATE RELEASE

ALLIANCE HOLDINGS GP, L.P.

Reports Strong First Quarter 2008 Financial Results; and Declares Quarterly Distribution of $0.2875 per Unit

TULSA, OKLAHOMA, April 28, 2008 – Alliance Holdings GP, L.P. (NASDAQ: AHGP) today reported net income for the quarter ended March 31, 2008 (the “2008 Quarter”) of $23.0 million, which is comparable to net income of $23.1 million for the quarter ended March 31, 2007 (the “2007 Quarter”). Basic and diluted net income per limited partner unit for the 2008 Quarter decreased to $0.38 per unit, compared to $0.39 per basic and diluted limited partner unit for the 2007 Quarter.

The Board of Directors of AHGP’s general partner (the “Board”) also declared a quarterly cash distribution for the 2008 Quarter of $0.2875 per unit (an annualized rate of $1.15 per unit), payable on May 20, 2008, to AHGP’s unitholders of record as of the close of trading on May 13, 2008.

The declared distribution is based on the distribution AHGP will receive from its ownership interests in Alliance Resource Partners, L.P. (NASDAQ: ARLP). On April 28, 2008, ARLP announced a quarterly distribution for the 2008 Quarter of $0.585 per unit, or $2.34 per unit on an annualized basis, which will be paid on May 15, 2008 to all ARLP unitholders of record as of the close of trading on May 8, 2008. (See ARLP Press Release dated April 28, 2008.)

AHGP currently has no other operating activities apart from those conducted by the operating subsidiaries of ARLP and reports its financial results on a consolidated basis with the financial results of ARLP. AHGP’s principal sources of cash flow are its ownership of general partner interests, limited partner interests and incentive distribution rights in ARLP. Based on ARLP’s current declared distribution, AHGP expects to receive quarterly cash distributions from ARLP of $18.0 million, or $71.9 million on an annualized basis. AHGP’s primary cash requirements are for general and administrative expenses, including for 2008 an estimated $2.2 million in incremental general and administrative expenses associated with being a publicly traded limited partnership, working capital requirements and distributions to its unitholders. At March 31, 2008, AHGP had no borrowings outstanding under its revolving credit facility.

AHGP and ARLP will discuss their 2008 Quarter financial results during a joint conference call scheduled for today at 10:00 a.m. Eastern. To participate in the conference call, dial (866) 383-7998 and provide pass code 46988597. International callers should dial (617) 597-5329. Investors may also listen to the call via the “investor information” section of AHGP’s website at http://www.ahgp.com.”

-MORE-

An audio replay of the conference call will be available for approximately one week. To access the audio replay, dial (888) 286-8010 and provide pass code 11402371. International callers should dial (617) 801-6888.

About Alliance Holdings GP, L.P.

AHGP is a limited partnership formed to own and control Alliance Resource Management GP, LLC, the managing general partner of ARLP, through which it holds a 1.98% general partner interest and the incentive distribution rights in ARLP. In addition, AHGP owns 15,544,169 common units of ARLP.

News, unit prices and additional information about AHGP including filings with the Securities and Exchange Commission, are available at http://www.ahgp.com. For more information, contact the investor relations department of AHGP at 918-295-1415 or via e-mail atinvestorrelations@ahgp.com

***

The statements and projections used throughout this release are based on current expectations. These statements and projections are forward-looking, and actual results may differ materially. These projections do not include the potential impact of any mergers, acquisitions, other business combinations, or dispositions that may occur after the date of this release. At the end of this release, we have included more information regarding business risks that could affect our results.

FORWARD-LOOKING STATEMENTS: With the exception of historical matters, any matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projected results. These risks, uncertainties and contingencies include, but are not limited to, the following: initially, our operating cash flow will be derived exclusively from cash distributions from ARLP; the risks to the business of ARLP include: increased competition in coal markets and ARLP’s ability to respond to the competition; fluctuation in coal prices, which could adversely affect ARLP’s operating results and cash flows; risks associated with the expansion of ARLP’s operations and properties; deregulation of the electric utility industry or the effects of any adverse change in the coal industry, electric utility industry, or general economic conditions; dependence on significant customer contracts, including renewing customer contracts upon expiration of existing contracts; customer bankruptcies and/or cancellations or breaches to existing contracts; customer delays or defaults in making payments; fluctuations in coal demand, prices and availability due to labor and transportation costs and disruptions, equipment availability, governmental regulations and other factors; ARLP’s productivity levels and margins that it earns on its coal sales; greater than expected increases in raw material costs; greater than expected shortage of skilled labor; any unanticipated increases in labor costs, adverse changes in work rules, or unexpected cash payments associated with post-mine reclamation and workers’ compensation claims; any unanticipated increases in transportation costs and risk of transportation delays or interruptions; greater than expected environmental regulation, costs and liabilities; a variety of operational, geologic, permitting, labor and weather-related factors; risk associated with major mine-related accidents, such as mine fires or interruptions; results of litigation, including claims not yet asserted; difficulty maintaining ARLP’s surety bonds for mine reclamation as well as workers’ compensation and black lung benefits; coal market’s share of electricity generation; prices of fuel that compete with or impact coal usage, such as oil or natural gas; legislation, regulatory and court decisions and interpretations thereof, including but not limited to issues related to climate change; the impact from provisions of The Energy Policy Act of 2005; the impact from provisions of or changes in enforcement activities associated with the Mine Improvement and New Emergency Response Act of 2006 as well as subsequent federal and state legislation or regulations; replacement of coal reserves; a loss or reduction of direct or indirect benefits from certain state and federal tax credits; difficulty obtaining commercial property insurance, and risks associated with ARLP’s participation (excluding any applicable deductible) in the commercial insurance property program.

-MORE-

Additional information concerning these and other factors can be found in AHGP’s public periodic filings with the Securities and Exchange Commission (“SEC”), including AHGP’s Annual Report on Form 10-K for the year ended December 31, 2007, filed on March 7, 2008 with the SEC. Except as required by applicable securities laws, AHGP does not intend to update its forward-looking statements.

-MORE-

ALLIANCE HOLDINGS GP, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OPERATING DATA

(In thousands, except unit and per unit data)

(Unaudited)

	Three Months Ended March 31,
	2008			2007
SALES AND OPERATING REVENUES:
Coal sales	$	269,158		$	238,870
Transportation revenues		10,620			8,679
Other sales and operating revenues		3,713			9,478
Total revenues		283,491			257,027
EXPENSES:
Operating expenses		192,618			166,989
Transportation expenses		10,620			8,679
Outside purchases		2,903			6,266
General and administrative		9,316			8,553
Depreciation, depletion and amortization		23,294			19,793
Total operating expenses		238,751			210,280
INCOME FROM OPERATIONS		44,740			46,747
Interest expense		(2,988	)		(2,821	)
Interest income		106			539
Other income		217			901
INCOME BEFORE INCOME TAXES, MINORITY INTEREST AND NON-CONTROLLING INTEREST		42,075			45,366
INCOME TAX EXPENSE (BENEFIT)		(655	)		575
INCOME BEFORE MINORITY INTEREST AND NON-CONTROLLING INTEREST		42,730			44,791
MINORITY INTEREST (EXPENSE)		(141	)		82
INCOME BEFORE NON-CONTROLLING INTEREST		42,589			44,873
Affiliate non-controlling interest in consolidated partnership’s net income		(7	)		(8	)
Non-affiliate non-controlling interest in consolidated partnership’s net income		(19,557	)		(21,794	)
NET INCOME	$	23,025		$	23,071
BASIC AND DILUTED NET INCOME PER LIMITED PARTNER UNIT	$	0.38		$	0.39
DISTRIBUTIONS PAID PER LIMITED PARTNER UNIT	$	0.2875		$	0.25
WEIGHTED AVERAGE NUMBER OF UNITSOUTSTANDING-BASIC AND DILUTED		59,863,000			59,863,000

-MORE-

ALLIANCE HOLDINGS GP, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except unit data)

(Unaudited)

	March 31, 2008			December 31, 2007
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	16,732		$	1,783
Trade receivables		105,461			92,667
Other receivables		2,715			3,399
Inventories		27,904			26,100
Advance royalties		4,452			4,452
Prepaid expenses and other assets		6,174			9,281
Total current assets		163,438			137,682
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment, at cost		990,591			948,210
Less accumulated depreciation, depletion and amortization		(448,789	)		(427,572	)
Total property, plant and equipment, net		541,802			520,638
OTHER ASSETS:
Advance royalties		21,692			25,974
Other long-term assets		16,683			18,194
Total other assets		38,375			44,168
TOTAL ASSETS	$	743,615		$	702,488
LIABILITIES AND PARTNERS’ CAPITAL
CURRENT LIABILITIES:
Accounts payable	$	60,450		$	47,034
Due to affiliates		115			1,343
Accrued taxes other than income taxes		12,504			11,091
Accrued payroll and related expenses		17,375			15,180
Accrued interest		1,216			3,826
Workers’ compensation and pneumoconiosis benefits		8,120			8,124
Current capital lease obligation		371			377
Other current liabilities		8,309			6,754
Current maturities, long-term debt		18,000			18,000
Total current liabilities		126,460			111,729
LONG-TERM LIABILITIES:
Long-term debt, excluding current maturities		158,000			136,000
Pneumoconiosis benefits		29,936			29,392
Workers’ compensation		45,591			44,150
Asset retirement obligations		54,681			54,903
Due to affiliates		39			—
Long-term capital lease obligation		1,049			1,135
Minority interest		648			507
Other liabilities		7,323			7,333
Total long-term liabilities		297,267			273,420
Total liabilities		423,727			385,149
NON-CONTROLLING INTEREST IN CONSOLIDATED PARTNERSHIP:
Affiliate		(303,814	)		(303,816	)
Non-Affiliates		365,142			358,601
Total non-controlling interest		61,328			54,785
COMMITMENTS AND CONTINGENCIES
PARTNERS’ CAPITAL:
Limited Partners – Common Unitholders 59,863,000 units outstanding, respectively		258,451			262,445
Accumulated other comprehensive income		109			109
Total Partners’ Capital		258,560			262,554
TOTAL LIABILITIES AND PARTNERS’ CAPITAL	$	743,615		$	702,488

-MORE-

ALLIANCE HOLDINGS GP, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three Months Ended March 31,
	2008			2007
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES	$	65,885		$	68,456
CASH FLOWS FROM INVESTING ACTIVITIES:
Property, plant and equipment:
Capital expenditures		(34,049	)		(30,725	)
Changes in accounts payable and accrued liabilities		3,467			(5,803	)
Proceeds from sale of property, plant and equipment		7			53
Proceeds from marketable securities		—			260
Payment for acquisition of coal reserves and other assets		(13,300	)		—
Advances on Gibson rail project		—			(1,754	)
Receipts of prior advances on Gibson rail project		738			—
Net cash used in investing activities		(43,137	)		(37,969	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facilities		76,100			—
Payments under revolving credit facilities		(54,100	)		—
Payments on capital lease obligation		(92	)		(60	)
Contributions to consolidated partnership from affiliate non-controlling interest		1			1
Distributions paid by consolidated partnership to affiliate non-controlling interest		(6	)		(5	)
Distributions paid by consolidated partnership to non-affiliate non-controlling interest		(12,492	)		(11,432	)
Distributions paid to Partners		(17,210	)		(14,965	)
Net cash used in financing activities		(7,799	)		(26,461	)
NET CHANGE IN CASH AND CASH EQUIVALENTS		14,949			4,026
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		1,783			37,069
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	16,732		$	41,095

-END-