Atlas America, Inc. Announces Subsidiary's Completion of Oklahoma Pipeline Acquisition for $192 million.

PHILADELPHIA -- Atlas America, Inc. (Nasdaq:ATLS) (the "Company") announces that its subsidiary Atlas Pipeline Partners, L.P. (NYSE:APL), has today acquired ETC Oklahoma Pipeline, Ltd. for $192 million plus related transaction costs.

ETC Oklahoma Pipeline's principal assets include approximately 318 miles of natural gas pipelines located in the Anadarko Basin in western Oklahoma, a natural gas processing facility in Elk City, Oklahoma with total capacity of 130 million cubic feet of gas per day ("mmcf/d") and a gas treatment facility in Prentiss, Oklahoma, with total capacity of 100 mmcf/d. Total gas throughput is currently approximately 262 mmcf/d. Total compression horsepower consists of 21,000 hp at six field stations and 12,000 horsepower within the Elk City and Prentiss facilities. The system gathers and processes gas from more than 300 receipt points involving more than fifty producers, and delivers that gas into multiple interstate pipeline systems.

Edward Cohen, Chairman and CEO of the Company, said, "We believe that the Elk City system acquisition is a significant step in APL's strategy to expand its unit holder value through accretive acquisitions. This is also of significant importance to Atlas America as a result of the additional expected cash distributions to APL's general partner, a wholly-owned subsidiary of Atlas America."

The sellers were LG PL, LLC, a Texas limited liability company, and La Grange Acquisition, L.P., a Texas limited partnership, subsidiaries of Energy Transfer Partners L.P. (NYSE:ETP).

Atlas America, Inc. is an energy company engaged primarily in the development, production and transportation of natural gas in the Appalachian Basin, and operates primarily in eastern Ohio and western Pennsylvania. ATLS is the owner of 100% of the general partner of Atlas Pipeline Partners, L.P. (NYSE:APL) and owns 1,641,026 common units of limited partner interest. Prior to the Elk City system acquisition, APL owned and operated more than 1,440 miles of natural gas gathering pipelines in western Pennsylvania, western New York and eastern Ohio and 1,900 miles of gathering pipeline in southern Oklahoma and northern Texas, as well as a gas processing facility in Velma, Oklahoma. For more information, please visit our website at www.atlasamerica.com, or contact investor relations at [e-mail].

Certain matters discussed within this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Atlas America, Inc. believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include financial performance, regulatory changes, changes in local or national economic conditions and other risks detailed from time to time in the Company's reports filed with the SEC, including quarterly reports on Form 10Q, reports on Form 8-K and annual reports on Form 10-K.