AlaTenn Resources Changes Name To ATRION Corporation And Reports 37% Higher First Quarter Earnings.

FLORENCE, Ala.--(BUSINESS WIRE)--May 6, 1996--Speaking to shareholders at AlaTenn Resources, Inc.'s annual meeting, Jerry A. Howard, Chairman of the Board, President and Chief Executive Officer, today announced that shareholders approved a proposal to change the name of the Company to ATRION Corporation (new Nasdaq symbol - ATRI). He also reported that the Company posted significantly higher revenues and earnings for the first quarter of 1996.

"Over the past 50 years, our Company has been associated with natural gas service to the Tennessee Valley region, helping to meet the energy requirements of municipal and industrial customers in north Alabama, southwest Tennessee, and northeast Mississippi," said Howard. "We began our operations under the name Alabama-Tennessee Natural Gas Company, and we later formed AlaTenn Resources as a holding company when we diversified into other natural gas related businesses. With our recent expansion into the medical and health care products industry and with our interest in other new opportunities beyond natural gas, we felt that the AlaTenn name no longer fully described the nature and breadth of our businesses. The name ATRION Corporation encompasses both our natural gas roots in Alabama and Tennessee and our recent expansion into the medical and health care products industry through Ryder International. The name ATRION visibly links our past accomplishments in the Tennessee Valley to our vision for the future."

Commenting on the Company's exceptionally strong first quarter results, Howard said that net income for the period ended March 31, 1996 rose 37% to $2.1 million or $.99 per share compared with $1.5 million or $.72 per share in the first quarter of 1995. First quarter revenues increased 84% to $41.3 million from $22.5 million last year.

Howard noted that the Company's improved results were from the pipeline and energy services sector where cold weather during the quarter resulted in higher demand for our natural gas marketing and transportation services. Heating degree days rose 23% over the comparable prior-year period, which also was characterized by rather cold temperatures," he said. "In addition, a customer on our intrastate pipeline experienced equipment failure in the first quarter, which resulted in increased deliveries on that system."

"Another factor affecting both revenues and earnings in the pipeline and energy services sector was the unusually high spot market prices that existed for natural gas during the quarter," Howard continued. "These high natural gas prices were the major factor in the substantial increase in revenues over the comparable prior-year period. By taking advantage of the strong demand and unusual spot market conditions, our natural gas marketing subsidiary was able to provide a competitively priced, reliable gas supply to its customers."

Commenting on the company's medical and health care products business, Howard pointed out that Ryder International's first quarter results matched those achieved for the same period last year. "Ryder has a number of products in various stages of development that will benefit its future growth, including a new inflation device that recently went into production," he said. According to Howard, the Company's new medical products marketing unit, ATRION Medical Products, continues to make good progress in implementing its marketing program for the LacriCATH product line. Howard stated that, "Our sales force is in place and we began product deliveries during the first quarter. We are encouraged by how well the start-up activities are commencing and believe that we will meet our objectives for the year."

At today's meeting, Howard informed shareholders that the Company's Board of Directors had declared a regular quarterly cash dividend of $.30 per share. This dividend will be paid on June 1, 1996 to shareholders of record as of May 22, 1996.

At today's meeting, shareholders elected three directors to new terms expiring in 1999. Elected were: Emile A. Battat, President and Chief Executive Officer of Piedmont Enterprises, Inc., a consulting firm; John H.P. Maley, a private consultant; J. Kenneth Smith, retired Director - Government Relations of Oryx Energy Company. Other directors who continue in office with terms expiring in 1997 or 1998 are: Jerry A. Howard, Chairman of the Board, President and Chief Executive Officer of the Company; Richard O. Jacobson, President and Chief Executive Officer of Jacobson Warehouse Company, Inc.; Jerome J. McGrath, Of Counsel to the law firm of Gallagher, Boland, Meiburger & Brosnan; Hugh J. Morgan, Jr., Chairman of the Board of National Bank of Commerce of Birmingham; Roger F. Stebbing, President and Chief Executive Officer of Marlboro Enterprises, Inc.; and John P. Stupp, Jr., Executive Vice President and Secretary of Stupp Bros., Inc.

ATRION Corporation, a diversified holding company, provides pipeline and energy services and designs, develops, manufactures, and markets innovative medical and health care products. -0-

                     AlaTenn Resources Corp.
                  Unaudited Financial Highlights

                                         Three Months Ended
                                              March 31,
                                      1996                1995

Revenues                           $41,322,000         $22,474,000
Net income                         $ 2,100,000         $ 1,531,000
Earnings per share                 $       .99         $       .72
Average shares outstanding           2,119,925           2,115,484

CONTACT: AlaTenn Resources Inc., Florence

George G. Petty, 205/383-3631