AlaTenn Resources reports first quarter earnings up 19%; declares $.30 per share regular quarterly cash dividend; signs agreement to build and manage oxygen pipeline.

FLORENCE, Ala.--(BUSINESS WIRE)--May 1, 1995--AlaTenn Resources, Inc. (Nasdaq/NM-ATNG) today announced higher revenues and earnings for the first quarter of 1995.

Net income for the period ended March 31, 1995, rose 19% to $1.5 million or $.72 per share compared with $1.3 million or $.61 per share in the first quarter of 1994. First quarter revenues increased 13% to $22.6 million from $20.0 million last year.

Speaking to shareholders gathered in Florence for the Company's 1995 annual meeting, Jerry A. Howard, Chairman of the Board, President and Chief Executive Officer of AlaTenn Resources, attributed the Company's improved results in large part to added revenues from health care products related to the Company's April 1994 acquisition of Ryder International Corporation. The Ryder acquisition was accounted for as a purchase and, consequently, the Company's results for the first quarter of 1994 did not include the operations of the new unit. Additionally, Howard noted that the Company's natural gas marketing subsidiary, ATEMCO, reported a substantial increase in sales volumes in the first quarter of 1995 compared to the same prior-year period due to substantially higher on- and off-system sales although revenues were lower due to a 31% decrease in natural gas spot prices between periods.

"We are very pleased with the ongoing strength and momentum we see in the Company's operations," Howard remarked. "In particular, we remain enthusiastic about the prospects for our health care products business. Ryder's progress in expanding its customer base, together with its increasing research and development activities, is expected to make Ryder more significant to our overall progress in the year ahead.

"Last year, we began to broaden our focus beyond our traditional natural gas business," he continued. "Ryder was the first tangible step in this direction. Today, I am pleased to announce another step, the completion of a definitive agreement to build and manage a 22-mile gaseous oxygen pipeline that will link one of current natural gas customers to its industrial gas supplier. This project, which will provide an attractive fixed return on investment over a 15-year period, further demonstrates the manner in which we can apply our pipeline expertise in areas outside traditional regulated natural gas pipeline operations." Howard indicated that a major portion of the Company's 1995 capital expenditures budget of $4.7 million will be used to construct the oxygen pipeline. He said the Company expects the new pipeline to become operational in the first quarter of 1996.

At today's meeting, stockholders also were informed that the Company's Board of Directors has declared a regular quarterly cash dividend of $.30 per share. This dividend will be paid on June 1, 1995, to shareholders of record as of May 15, 1995.

At the meeting, shareholders reelected three directors to new terms expiring in 1998. Elected were: Jerry A. Howard (52), Chairman of the Board, President and Chief Executive Officer of the Company; Roger F. Stebbing (54), President and Chief Executive Officer of Marlboro Enterprises, Inc.; and John P. Stupp, Jr. (44), Executive Vice President and Secretary of Stupp Bros., Inc. Other directors continuing in office are: Emile A. Battat (57), a private investor and formerly President and Chief Executive Officer of Minemet, Inc.; J. Kenneth Smith (67), retired Director - Government Relations of Oryx Energy Company; Richard O. Jacobson, (58), President and Chief Executive Officer of Jacobson Warehouse Company, Inc.; Jerome J. McGrath (72), Of Counsel to the law firm of Gallagher, Boland, Meiburger & Brosnan; and Hugh J. Morgan, Jr. (66), Chairman of the Board of National Bank of Commerce of Birmingham. Shareholders also approved a proposal to amend the Company's Articles of Incorporation, eliminating certain director liability to the extent permitted by Alabama law, and ratified the Board of Director's appointment of Arthur Andersen LLP as independent accountants for the year 1995.

AlaTenn Resources, Inc. is a diversified holding company. The Company's energy subsidiaries transport and market natural gas for customers in the Tennessee Valley region. Through Ryder International Corporation, the Company designs, develops and manufactures innovative proprietary products for leading health care companies worldwide. -0-

                       ALATENN RESOURCES, INC.
                    Unaudited Financial Highlights

                                      Three Months Ended
                                           March 31,
                                      1995          1994
Revenues                          $22,553,000   $20,007,000
Net income                        $ 1,531,000   $ 1,288,000
Earnings per share                $       .72   $       .61
Average shares outstanding          2,115,484     2,111,284

CONTACT: AlaTenn Resources, Inc., Florence

George G. Petty, 205/383-3631