Atlas Pipeline Partners, L.P. and Atlas Pipeline Holdings, L.P. Declare Distributions for the Fourth Quarter 2008.

PHILADELPHIA -- Atlas Pipeline Partners, L.P. (NYSE: APL) ("Atlas Pipeline" or the "Partnership") reported today that its Board of Directors has declared a quarterly cash distribution for the fourth quarter 2008 of $0.38 per common limited partner unit. The $0.38 distribution is payable Friday, February 13, 2009 to holders of record as of Monday, February 9, 2009.

Atlas Pipeline's Board of Directors declared the fourth quarter 2008 distribution on the basis of operating cash flow for the quarter. Significantly lower commodity prices and the adverse effects of Hurricane Ike materially reduced distributable cash flow. In addition to setting the distribution level, the Board also considered the Partnership's need to preserve capital and to reduce leverage.

In addition to cash flow related to ongoing operating revenues from which Atlas Pipeline is paying its quarterly distribution with coverage of 1.2x, the Partnership also generated $49 million of benefit from the following actions:

* The Partnership repurchased approximately $60 million in face amount of its Senior Notes in December 2008 for an aggregate purchase price of approximately $40 million, generating a gain of approximately $20 million;

* The Partnership entered into early settlement arrangements on approximately 13% of its commodity hedge contracts covering 2009 natural gas liquids (NGL) and condensate production volumes. The Partnership received approximately $19 million in net proceeds from these early settlements concluded in December 2008. The net proceeds from these settlements were used to reduce outstanding indebtedness; and,

* The Partnership recognized a $10.0 million benefit resulting from the early termination of certain derivative positions.

The Partnership also continues to consider additional strategic alternatives.

Eugene N. Dubay, Chief Executive Officer of the Partnership, stated, "The distribution of $0.38 per common unit comes despite the devastating and rapid decline in commodity prices, which were down approximately 60% from the previous quarter. We are hopeful that NGL prices (up approximately 50% from December 2008) will continue to recover, and that our unitholders may receive the benefit from such recovery."

As a result of the reduced distribution, Atlas Pipeline Holdings, L.P. (NYSE: AHD) ("Atlas Holdings"), which owns the general partner interest, approximately 5.8 million common limited partner units and 10,000 preferred Class B units in Atlas Pipeline, announced that its Board of Directors has declared a reduced quarterly cash distribution for the fourth quarter 2008 of $0.06 per common limited partner unit. Atlas Pipeline's distribution for the previous quarter was $0.96 per common unit and Atlas Holdings' distribution for the previous quarter was $0.51 per common unit. This $0.06 per common limited partner unit distribution is payable Thursday, February 19, 2009 to holders of record as of Monday, February 9, 2009.

Atlas Pipeline Partners, L.P. is active in the transmission, gathering and processing segments of the midstream natural gas industry. In the Mid-Continent region of Oklahoma, Arkansas, southern Kansas, northern and western Texas and the Texas panhandle, the Partnership owns and operates eight active gas processing plants and a treating facility, as well as approximately 7,900 miles of active intrastate gas gathering pipeline and a 565-mile interstate natural gas pipeline. In Appalachia, it owns and operates approximately 1,600 miles of natural gas gathering pipelines in western Pennsylvania, western New York, eastern Ohio and northeastern Tennessee. For more information, visit the Partnership's website at www.atlaspipelinepartners.com or contact [e-mail].

Certain matters discussed within this press release are forward-looking statements. Although Atlas Pipeline Partners, L.P. 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, inability of the Partnership to successfully integrate the operations at the acquired systems, regulatory changes, changes in local or national economic conditions and other risks detailed from time to time in Atlas Pipeline's reports filed with the SEC, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K.