ATRION Corporation reports third quarter earnings up 40%.

FLORENCE, Ala.--(BUSINESS WIRE)--Nov. 7, 1996--

Board declares three-for-two stock split and quarterly dividend

ATRION Corporation (Nasdaq/NM: ATRI) formerly AlaTenn Resources, Inc., today announced significant increases in earnings for both the third quarter and first nine months of 1996, compared with year-earlier periods.

The quarterly operating results primarily reflected the improved performance of the Company's Ryder unit and the contribution of Halkey-Roberts Corporation for the first full quarter following its May 1996 acquisition by the Company. The medical and health care products segment accounted for 34% of the Company's operating profit during the third quarter versus 9% in the year-earlier period.

The Company also announced that the Board of Directors has approved a three-for-two stock split to be effected in the form of a stock dividend of one share for every two common shares outstanding. Cash will be paid in lieu of fractional shares. The split will increase the number of outstanding common shares to approximately 3.2 million. The Company's Board of Directors also declared a quarterly cash dividend of $.20 per share on all post-split shares, which is equivalent to the Company's previous quarterly dividend of $.30 per share on a pre-split basis. Both the stock dividend and the cash dividend will be payable on December 2, 1996 to shareholders of record on November 20, 1996.

"We are very pleased to announce this stock split, which we believe will benefit our shareholders by increasing the Company's trading activity and liquidity," said Jerry A. Howard, ATRION's Chairman of the Board, President and Chief Executive Officer. "During the past year, we have made significant progress in implementing our strategy for growth. Our earnings performance is strong and we have seen a substantial appreciation in ATRION's price per share. The Board's decision to split the Company's shares recognizes these accomplishments."

Net income for the quarter increased 40% to $1.8 million or $.83 per share compared with $1.3 million or $.59 per share in the prior-year period. Net income for the third quarter included a non-recurring after tax gain of $301,000 or $.14 per share related to final adjustments for take-or-pay costs incurred by the Company's interstate pipeline subsidiary. Third quarter revenues increased 60% to $29.1 million versus $18.1 million last year due both to higher spot natural gas prices and sales volumes compared to the prior-year period.

Net income for the first nine months of the year rose 31% to $5.3 million or $2.50 per share compared with $4.0 million or $1.91 per share last year. Earnings for the 1996 period included the non-recurring gain as previously mentioned. For the year-to-date period, revenues increased 76% to $100 million versus $56.9 million for the first nine months of 1995.

ATRION Corporation supplies its customers with innovative medical and health care products and pipeline and energy services. -0-

                          ATRION Corporation
                    Unaudited Financial Highlights

                     Three Months Ended         Nine Months Ended
                        September 30,             September 30,
                     1996         1995         1996         1995

Revenues          $29,058,000  $18,134,000  $99,969,000  $56,957,000
Net Income        $ 1,759,000  $ 1,254,000  $ 5,306,000  $ 4,046,000
Earnings per
 share            $       .83  $       .59  $      2.50  $      1.91
Average shares
 outstanding        2,128,184    2,118,010    2,122,751    2,116,490
-0-

CONTACT: ATRION Corporation, Florence

George G. Petty, 205/383-3631