Travel Ports of America Reports Record Second Quarter; Six-Month Results; Ninth Consecutive Quarter of Sales Growth; Six-Month Non-Fuel, Same-Store Sales Up 8 Percent.

ROCHESTER, N.Y.--(BUSINESS WIRE)--Dec. 8, 1997--Travel Ports of America (Nasdaq: TPOA) Monday reported its ninth consecutive quarter of sales growth with record second quarter sales and an increase in net income of more than 36 percent from last year's second quarter.

EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter also reached an all-time high. For the three-month period ended Oct. 31, 1997, the company reported sales of $54.7 million with net income of $732,770 or $0.12 per share primary/$0.10 fully diluted, compared with net income of $536,748, or $0.09 per share primary/$0.08 fully diluted on sales of $52.7 million for the same period in 1996.

For the six-month period ended Oct. 31, 1997, sales were $111.1 million with net income of $1.6 million or $0.28 per share primary/$0.23 fully diluted, versus year-earlier six-month sales of $99.2 million with net income of $1.2 million or $0.21 per share primary/$0.18 fully diluted. Non-fuel operations accounted for 70 percent of gross profit.

According to the announcement made by TPOA President John M. Holahan, EBITDA for the three-month and six-month periods ended Oct. 31, 1997 rose 15 percent and 20 percent respectively from the same periods last year to $2.9 million and $6.1 million, compared with $2.5 million and $5.1 million, respectively in 1996. In addition, non-fuel same store sales increased eight percent for the six month period from the same period last year.

Holahan commented: "We have seen overall revenues, including non-fuel sales, increase since upgrading our travel plazas and focusing on creating a brand that travelers associate with professional and friendly services at reasonable costs. As our brand name strengthens, we continue to pursue acquisition candidates and consider the option of franchising."

Chief Financial Officer William Burslem said that the Oct. 31, 1997 balance sheet showed shareholder equity of $17.5 million, or approximately $2.31 per share on a fully diluted basis. He said that the company's earnings in the trailing 12 months were $0.36 on a primary basis, and $0.31 fully diluted.

Burslem said that the Oct. 31, 1997 balance sheet showed shareholder equity of $17.5 million, or approximately $2.31 per share on a fully diluted basis. He said that the company's earnings in the trailing 12 months were $0.36 on a primary basis, and $0.31 fully diluted.

Travel Ports of America operates full-service travel plazas in seven states, with operations in fueling (diesel and gasoline), truck repair, restaurants, lodging and other travel services. The company currently has operations in New York, New Jersey, Pennsylvania, New Hampshire, North Carolina, Maryland and Indiana. -0-

                        TRAVEL PORTS OF AMERICA INC.
                            Statement of Income
                                (Unaudited)

               Three Months Ended              Six Months Ended
                   Oct. 31,                        Oct. 31
              1997             1996         1997             1996

Net sales
and operating
revenue    $ 54,732,274   $ 52,698,998  $ 111,130,059   $ 99,187,934

Cost of
goods
sold         42,246,294     40,627,845     85,283,116     75,468,223

  Gross
  Profit     12,485,980     12,071,153     25,846,943     23,719,711

Operating
expense       9,330,000      9,381,477     19,092,266     18,121,616

General and
admin-
istrative     1,250,790      1,104,156      2,560,095      2,254,854

Interest
expense         790,885        772,950      1,600,607      1,386,954

Other income,
net            (136,165)      (123,078)      (194,436)      (177,462)

             11,235,510     11,135,505     23,058,532     21,585,962

Income before
taxes         1,250,470        935,648      2,788,411      2,133,749

Provision for taxes
on income       517,700        398,900      1,154,400        906,600

Net
income        $ 732,770      $ 536,748    $ 1,634,011    $ 1,227,149

Per share data:

  Net income per share --
  Primary     $    0.12      $    0.09    $      0.28    $      0.21

  Net income per share --
  Fully
  Diluted     $    0.10      $    0.08    $      0.23    $      0.18

Weighted average
shares --
Primary       5,950,329      5,742,728      5,849,536      5,742,906

Weighted average
shares --
Fully
diluted       7,593,439      7,385,838      7,542,647      7,404,520

CONTACT: Allen & Caron Inc.

Kent Broussard (investors)

Owen Daley (media)

714/252-8440

or

Travel Ports of America

John M. Holahan

or

William Burslem III, 716/272-1810