AlaTenn Resources' third quarter earnings increase 18%.

FLORENCE, Ala.--(BUSINESS WIRE)--November 4, 1994--AlaTenn Resources, Inc. (Nasdaq/NM:ATNG) today announced higher net income for the third quarter ended September 30, 1994.

The Company's improved earnings for the period were primarily attributable to the contribution of recently acquired Ryder International Corporation and a favorable retroactive pricing adjustment for natural gas transportation fees in prior years.

Net income for the third quarter increased 18% to $1,139,000 or $.54 per share compared with earnings in the year-earlier period totaling $963,000 or $.46 per share. Revenues for the quarter were $16.7 million versus $28.1 million in the same period last year.

For the nine-month period ended September 30, 1994, net income totaled $3.5 million or $1.67 per share compared with $3.4 million or $1.63 per share last year, before one-time adjustments. Those positive adjustments recorded in the second quarter of 1993 totaled $2.9 million or $1.37 per share and increased net income for the first nine months of 1993 to $6.3 million or $3.00 per share. Year-to-date revenues totaled $53.7 million versus $95.3 million in the same 1993 period.

"We are encouraged by the continued improvement in earnings," commented Jerry A. Howard, Chairman of the Board, President and Chief Executive Officer. "In particular, we note the solid contribution of our newest unit, Ryder International, which we acquired in the second quarter of 1994. Ryder has contributed to earnings since we acquired it in April. In addition, Ryder's revenues have offset to some extent the decline in marketing revenues which was anticipated in light of the previously announced change in the mix of the services delivered by our natural gas marketing unit."

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

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                       ALATENN RESOURCES, INC.
                   Unaudited Financial Highlights

                       Three Months Ended        Nine Months Ended
                          September 30,            September 30,
                        1994        1993         1994        1993

Revenues            $16,716,000 $28,135,000  $53,685,000 $95,287,000
Net income          $ 1,139,000 $   963,000  $ 3,523,000 $ 6,329,000(1)
Earnings per share  $       .54 $       .46  $      1.67 $      3.00(1)
Average shares
 outstanding          2,114,888   2,111,284    2,112,499   2,107,373

    (1) Includes $2.9 million or $1.37 per share related to the
        adjustment of certain provisions for potential unrecoverable
        take-or-pay expenses and discontinued operations.

CONTACT: AlaTenn Resources, Inc., Florence

George G. Petty, 205/383-3631