ALATENN RESOURCES REPORTS EARNINGS UP 14% IN 1995; ALATENN'S SUBSIDIARY CONTINUES OPPOSITION TO COMPETING PIPELINE.

FLORENCE, Ala.--(BUSINESS WIRE)--Feb. 15, 1995--AlaTenn Resources, Inc. (Nasdaq/NM - ATNG) today announced higher revenues and earnings for the fourth quarter and year ended December 31, 1995 compared to the fourth quarter and year ended December 31, 1994. The Company's operating revenues reflected greater operating contributions from each of the Company's business units, particularly AlaTenn's natural gas marketing company and its medical and health care products unit.

Net income for 1995 rose 14% to $5.3 million or $2.52 per share compared with $4.7 million or $2.22 per share in 1994. Revenues for 1995 increased 14% to $80.4 million versus $70.3 million in the prior year. Higher net income in 1995 for the Company's medical and health care products unit was a major factor in the Company's improved earnings. The improvement included a full year's operations for that unit in 1995 compared to eight months in the prior year, but also reflected, on a comparable period basis with the prior year, higher sales volumes, a more favorable product mix and lower operating costs.

Net income for the fourth quarter increased 11% to $1.3 million or $.61 per share compared with $1.2 million or $.55 per share in the prior-year period. Revenues for the period increased 37% to $23.4 million versus $17.1 million in the year-earlier period. Higher sales volumes and favorable product mix at the Company's medical and health care products unit favorably affected earnings in the fourth quarter compared to the same prior-year period. Substantially colder weather in the fourth quarter of 1995 compared to the same prior-year period favorably affected operating results at AlaTenn's natural gas marketing company and its interstate pipeline unit.

Commenting on the positive results, Jerry A. Howard, Chairman of the Board, President and Chief Executive Officer, said, "During the past year, we continued to take advantage of growth opportunities both within and outside our current business. Our initial step outside our current business, the 1994 acquisition of Ryder International, marked our entry into the medical and health care products field. In 1995, we completed our first full year of operations with Ryder which has continued to make a strong contribution to both our revenues and earnings."

Howard added that the Ryder management team was instrumental in obtaining for the Company exclusive worldwide manufacturing and marketing rights to a new line of medical products, called LacriCATH(TM). The primary product is a sterile, single-use, semi-flexible balloon catheter used to clear obstructions in the nasolacrimal duct which cause excessive tearing of the eye. "We are excited about the prospects for this new product and its strategic fit with our Ryder unit. Ryder will be producing important components for this product and will handle final assembly and shipping. Our newly created medical products marketing subsidiary will market this device and oversee distribution of the LacriCATH(TM) product line. Longer term, we foresee additional opportunities to manufacture or assemble other similar ophthalmic products. Moreover, we expect to continue to capitalize on the synergy between our medical products marketing subsidiary and Ryder's expanding health care products business." Howard said LacriCATH(TM) products will begin to be marketed to physicians, clinics and hospitals in the next few months.

Howard noted that in January 1996, the City Council in Huntsville, Alabama voted to join the City of Decatur, Alabama in approving natural gas transportation contracts between Southern Natural Gas Company, a wholly owned subsidiary of Sonat, Inc., and the utility departments of Huntsville and Decatur. In order to provide service under these contracts, Southern Natural Gas Company plans to construct a new pipeline to serve the Huntsville/Decatur area, which now receives its natural gas supplies through Alabama-Tennessee Natural Gas Company's pipeline system and an upstream pipeline. Southern Natural Gas Company has filed an application with the Federal Energy Regulatory Commission ("FERC") to build a 110-mile pipeline from Birmingham, Alabama to North Alabama to provide such service to Huntsville and Decatur beginning in or after the fourth quarter of 1997. In the meantime, Alabama-Tennessee continues to maintain firm transportation contracts with both cities. The contracts for most of this volume expire on November 1, 1997 for Decatur and April 1, 1998 for Huntsville. In 1995, Huntsville and Decatur accounted for approximately 4% of the Company's revenues and 16%, or $2.8 million, of the Company's gross margin.

The Company intends to oppose Southern Natural Gas Company's application at FERC and on February 9, 1996 filed a lawsuit in state court in Alabama against Southern Natural Gas Company and the City of Huntsville. In the lawsuit, the Company is asserting that the recently approved contract between Southern Natural Gas Company and Huntsville violates Alabama's competitive bid laws and is requesting that the contract be declared void.

Howard also pointed out the addition to AlaTenn's pipeline operations. During 1995, AlaTenn began and substantially completed the construction of a 23-mile pipeline to transport gaseous oxygen under a long term contract with a large industrial gas supplier to one of the Company's existing natural gas customers. "We believe this project stands out as an excellent example of how we have been able to maximize the expertise we have developed in pipeline operations," he said.

AlaTenn Resources, Inc. is a diversified holding company with interests in natural gas transmission and marketing and in the design, development, manufacture, and marketing of products for the medical and health care industry. -0-

                     ALATENN RESOURCES, INC.
                  Unaudited Financial Highlights

                  Three Months Ended           Twelve Months Ended
                      December 31,                December 31,
                  1995          1994          1995           1994
Revenues     $ 23,421,000  $ 17,101,000  $ 80,379,000   $ 70,321,000
Net income   $  1,294,000  $  1,167,000  $  5,340,000   $  4,690,000
Earnings
 per share   $        .61  $        .55  $       2.52   $       2.22
Average shares
 outstanding    2,118,429     2,115,484     2,116,979      2,113,251

CONTACT: AlaTenn Resources, Inc., Florence

George G. Petty, 205/383-3631