Atlas America, Inc. Reports Record Financial Results for the Second Quarter 2008

PHILADELPHIA--(Business Wire)--
Atlas America Inc. (NASDAQ:ATLS) ("Atlas America" or "the
Company") today reported record financial results for the second
quarter 2008.

The results of the second quarter 2008 include:

-- Adjusted net income of $14.8 million for the second quarter
2008 compared with $11.3 million for the prior year second
quarter, an increase of $3.5 million, or 31%. Adjusted diluted
net income per share was $0.35 for the second quarter 2008
compared with $0.27 per share for the second quarter 2007, an
increase of $0.08 per share, or 30%. The quarter-over-quarter
increase was principally attributable to contributions from
the Chaney Dell and Midkiff/Benedum systems acquired by Atlas
Pipeline Partners, L.P. (NYSE:APL - "Atlas Pipeline") in July
2007, contributions from the Michigan assets acquired by Atlas
Energy Resources, LLC (NYSE:ATN - "Atlas Energy") in June
2007, significant growth in Atlas Energy's drilling
partnership management business, and an increase in production
from Atlas Pipeline's legacy assets. On a GAAP basis, the
Company recognized a net loss of $7.8 million for the second
quarter 2008 compared with net income of $19.9 million for the
prior year second quarter;

-- Record pretax cash flow of $0.70 per basic common share for
the second quarter 2008, an increase of $0.34 per common
share, or 94%, from the prior year second quarter. The second
quarter 2008 pretax cash flow per share also represents an
increase of $0.14 per common share, or 25%, from the first
quarter 2008. In addition, the Company anticipates it will not
likely be a tax payer on a cash basis in 2008 and anticipates
it will have a reduced 2009 cash tax liability, or possibly no
cash tax liability, because of events associated with equity
offerings at Atlas Energy and Atlas Pipeline Holdings, L.P.
(NYSE:AHD - "Atlas Pipeline Holdings") in 2007, as well as the
termination of certain hydrocarbon hedges by Atlas Pipeline in
June 2008; and

-- Excluding the effect of non-cash hydrocarbon hedge expense and
other non-recurring charges, total revenues were $660.9
million, an increase of $443.8 million compared to the second
quarter 2007. Loss on mark-to-market hydrocarbon hedges, which
was $316.1 million for the second quarter 2008 compared with
$2.3 million for the prior year second quarter, increased
principally due to higher commodity prices and their impact on
Atlas Pipeline hydrocarbon hedge contracts for production
volumes in future periods.

On July 22, 2008, the Company announced that its Board of
Directors had declared a cash dividend of $0.05 per common share,
payable on August 19, 2008, to holders of record on August 6, 2008.
The $2.0 million aggregate dividend represents a 50% increase from the
prior year second quarter aggregate dividend.

In June 2008, the Company purchased 1,112,000 Atlas Pipeline
common limited partner units and 308,109 common limited partner units
of Atlas Pipeline Holdings, a publicly-traded partnership and general
partner of Atlas Pipeline, in private placement transactions at per
unit amounts of $36.02 and $32.50, respectively. Atlas Pipeline used
its proceeds of $40.1 million to fund the early termination of certain
crude oil hedge agreements. Atlas Pipeline Holdings used its proceeds
of $10.0 million to fund the purchase of an additional 278,000 Atlas
Pipeline common units.

In May 2008, the Company purchased 600,000 of Atlas Energy's Class
B common units in a private placement transaction at a price of $42.00
per common unit, increasing the Company's ownership to 29,952,996.
Atlas Energy's proceeds of $25.2 million were used to repay a portion
of its outstanding balance under its revolving credit facility.

The Company owns an approximate 48% common unit interest and all
of the Class A and management incentive interests in Atlas Energy, a
publicly-traded partnership, an approximate 2% direct ownership
interest in Atlas Pipeline, a publicly-traded partnership, and an
approximate 64% limited partner interest and 100% of the general
partner interest in Atlas Pipeline Holdings. The Company's financial
results are presented on a consolidated basis with those of Atlas
Energy, Atlas Pipeline Holdings, and Atlas Pipeline. Non-controlling
minority interests in Atlas Energy, Atlas Pipeline Holdings, and Atlas
Pipeline are reflected as income (expense) in our consolidated
statements of operations and as a liability on our consolidated
balance sheet.

Please see the respective earnings releases for Atlas Energy,
Atlas Holdings and Atlas Pipeline for more information with regard to
their second quarter 2008 financial results.

Cash Distributions from Affiliates

-- Atlas Energy declared a record quarterly cash distribution of
$0.61 per common unit for the second quarter 2008 with a
distribution coverage ratio of approximately 1.3x. This
distribution represents a $0.18 per unit increase, or 42%,
from the second quarter 2007's quarterly distribution, and a
$0.02 increase, or 3%, from the first quarter 2008's quarterly
distribution. This quarter's distribution will be paid on
August 14, 2008 to unitholders of record on August 6, 2008.
The Company will receive approximately $19.1 million in cash
distributions from its ownership interest in Atlas Energy for
the second quarter 2008.

-- Atlas Pipeline Holdings declared a record quarterly cash
distribution for the second quarter 2008 of $0.51 per common
limited partner unit, which will be paid on August 19, 2008 to
common unitholders of record as of August 6, 2008. This
distribution represents a $0.25 per unit increase, or 96%,
from the second quarter 2007's quarterly distribution, and an
$0.08 increase, or 19%, from the first quarter 2008's
quarterly distribution. The Company will receive approximately
$9.1 million in cash distributions from its ownership interest
in Atlas Pipeline Holdings for the second quarter 2008.

-- Atlas Pipeline declared a record quarterly cash distribution
for the second quarter 2008 of $0.96 per common limited
partner unit, which will be paid on August 14, 2008 to common
unitholders of record as of August 6, 2008. This distribution
represents a $0.09 per unit increase, or 10%, from the second
quarter 2007's quarterly distribution, and a $0.02 increase,
or 2%, from the first quarter 2008's quarterly distribution.
The Company will receive approximately $1.1 million in cash
distributions from its ownership interest in Atlas Pipeline
for the second quarter 2008.

Atlas Energy Recent Events

-- Atlas Energy continued to expand its acreage position and
development activities in the Marcellus Shale:

-0-
*T
-- To date, Atlas Energy has drilled 78 vertical wells and
one horizontal Marcellus Shale well and is currently
producing 69 Marcellus wells into a pipeline (nine wells
are waiting on completion);

-- As of June 30, 2008, Atlas Energy controlled
approximately 552,000 Marcellus acres in Pennsylvania,
New York and West Virginia, of which approximately
269,000 of these acres are located in Atlas Energy's
current focus area of southwestern Pennsylvania;

-- Atlas Energy continues to realize average peak
production rates (24 hours into a pipeline) of
approximately one million cubic feet ("Mmcf") per day,
with its best wells having initial peak rates of
approximately 3 Mmcf per day. At the end of the quarter,
Atlas Energy's gross operated Marcellus production was
near 20 Mmcf per day.
*T

-- Atlas Energy drilled or participated in four successful
horizontal wells in the Chattanooga Shale of Eastern
Tennessee. Initial results indicate that horizontal
Chattanooga Shale wells can be drilled and completed for
approximately $1.1 million, and are capable of stabilized
production into a pipeline of between 300 and 500 Mcfe per
day. Atlas Energy has accumulated 117,000 net acres located in
Eastern Tennessee. Atlas Energy believes that its acreage
contains up to 500 potential horizontal drilling locations in
the Chattanooga Shale. Furthermore, most of this acreage is
prospective from conventional reservoirs, such as the
Monteagle (Big Lime), the Fort Payne Limestone, the Stones
River and the Knox Group, for which Atlas Energy believes it
has up to 750 locations.

-- Atlas Energy recently completed fundraising for the Public
#17-2007 (B) drilling program, which raised approximately
$236.0 million in investor funds, representing the Company's
largest individual fundraising to date. Atlas Energy also
filed Amendment No. 1 for the Atlas Resources Public #18-2008
Drilling Program Registration Statement with the Securities
and Exchange Commission to offer and sell up to $600 million
in investor funds(1). The Company plans to raise at least
$500.0 million in total investor funds for the fiscal year
2008;

-- In May 2008, the Company purchased 600,000 Atlas Energy common
units in a private placement transaction for $25.5 million. In
addition, Atlas Energy sold 2,070,000 of its Class B common
units in a public offering yielding net proceeds of
approximately $82.5 million. The net proceeds were used to
repay a portion of its outstanding balance under its revolving
credit facility;

-- In addition to the equity offerings in May 2008, Atlas Energy
issued an additional $150.0 million of 10.75% senior unsecured
notes due in 2018 as an add-on offering to its $250 million
senior note offering in January 2008. The Company used the net
proceeds from the note offering to reduce the balance
outstanding on its revolving credit facility.

-0-
*T
(1) Atlas Energy's subsidiary serves as managing general partner of
the partnership. A registration statement related to these
securities has been filed with the Securities and Exchange
Commission but has not yet become effective. These securities
may not be sold nor may offers to buy be accepted prior to the
time the registration statement becomes effective. A written
prospectus meeting the requirements of Section 10 of the
Securities Act may be obtained when available from Anthem
Securities, Inc. (a subsidiary of Atlas Energy), 1550 Coraopolis
Heights Rd. - 2nd Floor, Moon Township, PA 15108
*T

Atlas Pipeline and Atlas Pipeline Holdings Recent Events

-- In June 2008, Atlas Pipeline sold 5,750,000 common limited
partner units in a public offering at a price of $37.52 per
unit, yielding net proceeds of approximately $206.6 million.
Concurrently, Atlas Pipeline sold 278,000 common limited
partner units to Atlas Pipeline Holdings in a private
placement at a price of $36.02 per unit, resulting in net
proceeds of approximately $50.1 million. Atlas Pipeline also
received a capital contribution from Atlas Pipeline Holdings
of $5.4 million for it to maintain its 2.0% general partner
interest in Atlas Pipeline. Atlas Pipeline utilized the net
proceeds from the sale and the capital contribution to fund
the early termination of certain crude oil hedge agreements.
In order to fund its purchase of Atlas Pipeline's common
limited partner units, Atlas Pipeline Holdings sold 308,109 of
its common limited partner units to the Company in a private
placement transaction at a price of $32.50 per unit for net
proceeds of $10.0 million.

-- The net proceeds from the public and private placement
offerings of Atlas Pipeline's common units were utilized to
fund the early termination of a majority of its crude oil
hedge contracts that it entered into as proxy hedges for the
prices it receives for the ethane and propane portion of its
NGL equity volumes. These hedges, which related to production
periods ranging from the end of the second quarter of 2008
through the fourth quarter of 2009, were put in place
simultaneously with Atlas Pipeline's acquisition of the Chaney
Dell and Midkiff/Benedum systems in July 2007 and had become
less effective as a result of significant increases in the
price of crude oil and less significant increases in the price
of ethane and propane. Atlas Pipeline estimates that it
incurred a charge during the second quarter 2008 of
approximately $10.6 million due to the decline in the price
correlation of crude oil and ethane and propane. Atlas
Pipeline terminated these crude oil hedge contracts during
June and July 2008 at an aggregate net cost of approximately
$264.0 million. The Company's net income for the second
quarter 2008 includes a $116.1 million cash hydrocarbon hedge
expense resulting from Atlas Pipeline's June 2008 net payments
of $170.4 million to unwind a portion of these crude oil hedge
contracts. Atlas Pipeline also made payments of $93.6 million
during July 2008 to unwind the remaining portion of these
crude oil hedge contracts and will reflect a charge against
the Company's net income for a portion of this amount during
the third quarter of 2008.

-- In June 2008, Atlas Pipeline issued $250.0 million of 10-year,
8.75% senior unsecured notes in a private placement
transaction. The net proceeds from the issuance of the senior
notes were utilized to repay indebtedness under Atlas
Pipeline's senior secured term loan and revolving credit
facility.

-- In June 2008, Atlas Pipeline obtained $80.0 million of
increased commitments to its senior secured revolving credit
facility, increasing its aggregate lender commitments to
$380.0 million.

Atlas Energy Results

-- Atlas Energy drilled 241 gross wells in Appalachia in the
second quarter 2008, including 23 wells drilled into the
Marcellus Shale. Atlas Energy also drilled 40 gross wells
during the second quarter 2008 in Michigan.

-- At June 30, 2008, Atlas Energy held approximately 840,700 net
acres in the Appalachian Basin, of which 578,700 were
undeveloped, an increase of 28% from the net acreage position
at June 30, 2007. Also, Atlas Energy had approximately 273,900
net acres in the Antrim Shale in Michigan at June 30, 2008, of
which approximately 39,300 were undeveloped.

-- Atlas Energy has identified approximately 3,914 geologically
favorable shallow drilling locations on its acreage in the
Appalachian Basin, which does not include any locations
prospective for the Marcellus Shale. In addition, Atlas Energy
has identified approximately 749 drilling locations in
Michigan.

-- Atlas Energy had interests in approximately 11,250 gross wells
at June 30, 2008, of which Atlas Energy operates approximately
80%.

-- Natural gas and oil production was 94.6 million cubic feet
equivalents ("Mmcfe") per day for second quarter 2008,
compared to 88.7 Mmcfe per day from the second quarter 2007.
The increase is due primarily to Atlas Energy's expanding
drilling programs and increased production from the Marcellus
Shale.

-- Partnership management fee margin was $23.2 million in the
second quarter 2008, an increase of approximately 67% compared
to the prior year second quarter and approximately 13% higher
than the first quarter 2008.

Atlas Pipeline Results

-- Average natural gas gathered volume for the second quarter
2008 was 1,278.8 million cubic feet per day ("MMcfd") for
Atlas Pipeline, an increase of 68% from natural gas gathered
volume for the prior year comparable quarter. The increase was
principally due to Atlas Pipeline's acquisition of the Chaney
Dell and Midkiff/Benedum gathering systems during July 2007 as
well as higher throughput from its other systems.

-- Atlas Pipeline connected 379 new wells to its natural gas
gathering systems during the second quarter 2008, an increase
of 66% from 229 new well connections for the prior year
comparable period. For the twelve month period ending June 30,
2008, Atlas Pipeline connected 1,781 wells to its gathering
systems.

-- Atlas Pipeline's processed natural gas volume for the second
quarter 2008 was 689.9 MMcfd, an increase of 133% from
processed natural gas volume for the prior year comparable
quarter. Also, Atlas Pipeline's gross natural gas liquids
("NGLs") volume for the second quarter 2008 was 51,633 barrels
per day ("bpd"), an increase of 214% from gross NGL volume for
the prior year comparable quarter. These increases were
principally due to Atlas Pipeline's acquisition of the Chaney
Dell and Midkiff/Benedum processing plants in July 2007, an
increase in the utilization of the Sweetwater processing
plant, and higher production volumes at Atlas Pipeline's Velma
processing plant.

-- Atlas Pipeline's gross condensate volume for the second
quarter 2008 was 3,002 bpd, an increase of almost 600% from
condensate volume for the prior year comparable quarter.

Corporate and Other

-- General and administrative expense was $25.5 million for the
second quarter 2008, an increase of $4.0 million from the
prior year comparable period, primarily due to higher costs in
managing our operations, including expenses related to the
newly acquired assets by Atlas Energy and Atlas Pipeline
during June and July 2007, respectively.

-- Interest expense was $34.3 million for the second quarter
2008, an increase of $25.4 million from the prior year
comparable period, primarily due to the financing of the
assets acquired by Atlas Energy and Atlas Pipeline in 2007,
partially offset by lower interest rates.

-0-
*T
At June 30, 2008, the Company had $2.1 billion of total
consolidated debt, all of which is held at its operating
subsidiaries, including $1.3 billion at Atlas Pipeline and
$0.8 billion at Atlas Energy.
*T

Interested parties are invited to access the live webcast of an
investor call with management regarding Atlas America's second quarter
2008 results on Friday morning, August 8, 2008 at 9:00 am ET by going
to the Investor Relations section of Atlas America's website at
www.atlasamerica.com. An audio replay of the conference call will also
be available beginning at 11:00 am ET on Friday, August 8, 2008. To
access the replay, dial 1-888-286-8010 and enter conference code
61200799.

Atlas America, Inc. owns an approximate 48% common unit interest
and all of the Class A and management incentive interests in Atlas
Energy Resources, LLC (NYSE:ATN), a 2% direct ownership interest in
Atlas Pipeline Partners, L.P. (NYSE:APL), and a 64% limited partner
interest in Atlas Pipeline Holdings, L.P. (NYSE:AHD), which holds the
general partner interest and approximately 5.8 million limited partner
units of Atlas Pipeline Partners, L.P. For more information, please
visit our website at www.atlasamerica.com, or contact Investor
Relations at bbegley@atlasamerica.com.

Atlas Energy Resources, LLC develops and produces domestic natural
gas and to a lesser extent, oil. Atlas Energy is one of the largest
independent energy producers in the Appalachian Basin and northern
Michigan. The Company sponsors and manages tax-advantaged investment
partnerships, in which it co-invests, to finance the exploration and
development of the Company's acreage in the Appalachian Basin. Atlas
Energy is active principally in Pennsylvania, Michigan and Tennessee.
For more information, visit Atlas Energy's website at
www.atlasenergyresources.com or contact investor relations at
bbegley@atlasamerica.com.

Atlas Pipeline Holdings, L.P. (NYSE:AHD) is a limited partnership
which owns and operates the general partner of Atlas Pipeline
Partners, L.P., through which it owns a 2% general partner interest,
all the incentive distribution rights and approximately 5.8 million
common units of Atlas Pipeline Partners.

Atlas Pipeline Partners, L.P. (NYSE:APL) 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 and 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 Atlas Pipeline's website at
www.atlaspipelinepartners.com or contact
bbegley@atlaspipelinepartners.com.

Certain matters discussed within this press release are
forward-looking statements. 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 Atlas America'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.

-0-
*T
ATLAS AMERICA, INC.
Financial Summary
(Unaudited)
(in thousands, except per share data)

Three Months Ended Six Months Ended
June 30, June 30,
-------------------- ---------------------
2008 2007 2008 2007
---------- --------- ----------- ---------

REVENUES
Well construction and
completion $ 122,341 $ 65,139 $ 226,479 $137,517
Gas and oil production 78,956 25,315 155,182 46,575
Transmission, gathering
and processing 454,451 119,109 839,777 234,399
Administration and
oversight 5,137 3,439 10,154 7,983
Well services 5,266 4,155 10,064 7,876
Loss on mark-to-market
hydrocarbon hedges(1) (316,068) (2,291) (404,849) (4,569)
---------- --------- ----------- ---------
Total revenues 350,083 214,866 836,807 429,781
---------- --------- ----------- ---------

COSTS AND EXPENSES
Well construction and
completion 106,384 56,648 196,939 119,580
Gas and oil production 12,379 2,491 23,047 4,525
Transmission, gathering
and processing 369,245 94,849 664,777 190,324
Well services 2,650 2,147 5,062 4,190
General and
administrative 25,531 21,541 46,789 36,306
Depreciation, depletion
and amortization 49,143 13,476 96,776 25,877
---------- --------- ----------- ---------
Total costs and expenses 565,332 191,152 1,033,390 380,802
---------- --------- ----------- ---------

OPERATING INCOME (LOSS) (215,249) 23,714 (196,583) 48,979

OTHER INCOME (EXPENSE)
Interest expense (34,310) (8,945) (68,408) (16,201)
Minority interests 231,166 11,776 254,831 8,590
Other, net 5,993 1,455 8,023 2,899
---------- --------- ----------- ---------
Total other income
(expense) 202,849 4,286 194,446 (4,712)
---------- --------- ----------- ---------

Income (loss) before income
taxes (12,400) 28,000 (2,137) 44,267
Benefit (provision) for
income taxes 4,629 (8,134) 788 (14,153)
---------- --------- ----------- ---------
Net income (loss) $ (7,771) $ 19,866 $ (1,349) $ 30,114
========== ========= =========== =========

Net income (loss) per
common share - basic $ (0.19) $ 0.49 $ (0.03) $ 0.73
========== ========= =========== =========
Weighted average common
shares outstanding - basic 40,335 40,220 40,330 41,393
========== ========= =========== =========

Net income (loss) per
common share - diluted $ (0.19) $ 0.48 $ (0.03) $ 0.70
========== ========= =========== =========
Weighted average common
shares outstanding -
diluted 40,335 41,796 40,330 42,804
========== ========= =========== =========
*T

-0-
*T
June 30, December 31,
2008 2007
---------- ------------
Balance Sheet Data (at period end):
----------------------------------------------
Cash and cash equivalents $ 241,549 $ 145,535
Property and equipment, net 3,665,265 3,442,036
Total assets 5,357,106 4,904,367
Total debt 2,069,567 1,994,456
Total stockholders' equity 333,127 413,163

-------------------------
*T

-0-
*T
(1) Consists of hydrocarbon hedging / (losses) that relate to the
operating activities of the Company's consolidated subsidiaries,
Atlas Energy and Atlas Pipeline, and the underlying hydrocarbon
hedges do not represent present or potential future obligations
of the Company.
*T

-0-
*T

ATLAS AMERICA, INC.
Financial Information
(Unaudited)
(in thousands, except per share data)

Three Months Ended Six Months Ended
June 30, June 30,
-------------------- ---------------------
2008 2007 2008 2007
---------- --------- ----------- ---------
Reconciliation of total
revenue to adjusted total
revenue(1):
Total revenue $ 350,083 $214,866 $ 836,807 $429,781
Adjustments to reflect
non-cash hydrocarbon
hedge charge 184,067 2,292 265,951 4,569
Non-recurring cash impact
of early termination of
Atlas Pipeline
hydrocarbon hedge
instruments(2) 116,125 -- 116,125 --
Non-recurring Atlas
Pipeline crude oil to
natural gas
liquids price correlation
impact(3) 10,653 -- 10,653 --
---------- --------- ----------- ---------
Adjusted total revenue $ 660,928 $217,158 $1,229,536 $434,350
========== ========= =========== =========

Reconciliation of net
income (loss) to non-GAAP
measure(1):
Net income (loss) $ (7,771) $ 19,866 $ (1,349) $ 30,114
Adjustments to reflect
non-cash hydrocarbon
hedge charge 184,067 2,292 265,951 4,569
Non-recurring cash
impact of early
termination of
Atlas Pipeline
hydrocarbon hedge
instruments(2) 116,125 -- 116,125 --
Non-recurring
hydrocarbon hedge
fees(4) -- 3,873 -- 3,873
Non-recurring Atlas
Pipeline crude oil to
natural
gas liquids price
correlation impact(3) 10,653 -- 10,653 --
Non-cash compensation
expense 4,979 4,888 5,171 8,924
Adjustment to minority
interests for the
above items (279,827) (23,076) (351,726) (26,967)
Tax effect of the above
items (13,445) 3,493 (17,254) 2,597
---------- --------- ----------- ---------
Adjusted net income 14,781 11,336 27,571 23,110
========== ========= =========== =========

Adjusted net income
per common share:
Basic $ 0.37 $ 0.28 $ 0.68 $ 0.56
Diluted $ 0.35 $ 0.27 $ 0.65 $ 0.54

Weighted average
common shares
outstanding:
Basic 40,335 40,220 40,330 41,393
Diluted 42,348 41,796 42,208 42,804

Pretax cash flow:
Pretax cash flow per
common share - basic(5) $ 0.70 $ 0.36 $ 1.25 $ 0.73
Dividends declared per
share(6) $ 0.05 $ 0.02 $ 0.08 $ 0.06
Dividend payout ratio 7.1% 6.2% 6.6% 7.6%

Three Months Ended
--------------------
June 30, March 31,
2008 2008
---------- ---------
Pretax cash flow:
Pretax cash flow per
common share - basic(5) $ 0.70 $ 0.56
Dividends declared per
share(6) $ 0.05 $ 0.03
Dividend payout ratio 7.1% 5.9%

---------------------------

*T

-0-
*T
(1) Adjusted total revenue and adjusted net income are non-GAAP
financial measures under the rules of the Securities and Exchange
Commission. Management of the Company believes that the above
financial measures provide additional information with respect to
the Company's ability to meet its capital expense and working
capital requirements. Adjusted total revenue and adjusted net
income are not measures of financial performance under GAAP and,
accordingly, should not be considered as a substitute for
revenues, net income or cash flows from operating activities
prepared in accordance with GAAP.

(2) In June and July 2008, Atlas Pipeline closed crude oil costless
collar hedge positions it had on approximately 85% of the ethane
and propane portion of its NGL production volume for the periods
from principally the 2nd quarter 2008 through the 4th quarter of
2009. In completing this transaction, Atlas Pipeline made net
payments to the counterparties of these crude oil hedge
positions, approximately $264.0 million, to settle the
outstanding positions at their current fair market value, with
$170.4 million of net payments made during June 2008 and $93.6
million paid during July 2008. The settlement of these crude oil
hedge positions will result in Atlas Pipeline recognizing higher
adjusted revenue, EBITDA and distributable cash flow during these
future periods. These settlements were funded through Atlas
Pipeline's June 2008 issuance of 5,750,000 common limited partner
units in a public offering and issuance of 1,390,000 common
limited partner units to Atlas Pipeline Holdings, L.P., the owner
of Atlas Pipeline's general partner, and the Company in private
placements.

(3) Represents the non-recurring impact generated from the decline in
the price correlation of crude oil and natural gas liquids during
the second quarter 2008 and the resulting impact it had on
certain crude oil hedge instruments ("proxy hedges"). These crude
oil hedge instruments were put in place simultaneously with Atlas
Pipeline's acquisition of the Chaney Dell and Midkiff/Benedum
systems in July 2007 and have become less effective as a result
of significant increases in the price of crude oil and less
significant increases in the price of ethane and propane. During
June and July 2008, Atlas Pipeline closed the crude oil hedge
positions it had on approximately 85% of the ethane and propane
portion of its NGL production volume for the periods from
principally the 2nd quarter 2008 through the 4th quarter of 2009
for an aggregate net cost of $264.0 million (see Note 2). As
such, Atlas Pipeline's future cash flow should more accurately
reflect the revenues generated from its ethane and propane
volumes produced in its natural gas processing operations.

(4) Represents non-recurring fees paid by Atlas Energy to enter into
natural gas hedges associated with the acquisition of its
Michigan assets in June 2007.

(5) Consists of the following items received or incurred during the
respective period and calculated on a basic weighted average per
share basis: (i) distributions received by the Company from its
ownership interests in Atlas Energy, Atlas Pipeline, and Atlas
Pipeline Holdings, (ii) interest income, and (iii) general and
administrative expenses and other costs incurred.

(6) These amounts have been adjusted to reflect the April 2007 and
April 2008 3-for-2 stock splits. Actual dividend payments were
$0.05 per common share for the three months ended June 30, 2008
and 2007, and $0.10 per common share for the six months ended
June 30, 2008 and 2007.
*T

-0-
*T

ATLAS AMERICA, INC.
Operating Highlights

Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------
ATLAS ENERGY: 2008 2007 2008 2007
-------------------------- ----------- --------- ----------- ---------
Production revenues (in
thousands):
Gas(1) $ 74,217 $ 22,709 $ 147,091 $ 42,137
Oil 4,706 2,592 8,058 4,419

Production
volume(1)(2)(3)(4):
Gas (mcfd) 92,026 85,901 90,683 84,951
Oil (bpd) 434 462 420 411
----------- --------- ----------- ---------
Total (mcfed) 94,630 88,673 93,203 87,417
=========== ========= =========== =========

Average sales prices(3):
Gas (per mcf)(5)(6) $ 9.21 $ 9.27 $ 9.39 $ 9.20
Oil (per bbl)(9) $ 119.16 $ 61.62 $ 105.58 $ 59.40

Production costs (3)(7):
Lease operating
expenses as a percent
of production
revenues 9% 9% 9% 9%
Lease operating
expenses per Mcfe $ 0.83 $ 0.88 $ 0.81 $ 0.85
Production taxes per
Mcfe $ 0.43 $ 0.03 $ 0.38 $ 0.04
----------- --------- ----------- ---------
Total production costs
per Mcfe $ 1.26 $ 0.91 $ 1.19 $ 0.89
=========== ========= =========== =========

Depletion per Mcfe(3) $ 2.56 $ 2.32 $ 2.54 $ 2.31

ATLAS PIPELINE:
--------------------------
Appalachia system
throughput volume
(mcfd)(3) 84,475 66,152 80,054 64,352

Velma system gathered
gas volume (mcfd)(3) 65,519 62,788 63,960 61,907

Elk City/Sweetwater
system gathered gas
volume (mcfd)(3) 292,544 308,703 298,961 298,355

Chaney Dell system
gathered gas volume
(mcfd)(3)(8) 284,528 -- 268,008 --

Midkiff/Benedum system
gathered gas volume
(mcfd)(3)(8) 150,157 -- 146,350 --

NOARK Ozark Gas
Transmission throughput
volume (mcfd)(3) 401,539 321,717 395,916 304,400
----------- --------- ----------- ---------

Combined throughput
volume (mcfd)(3) 1,278,762 759,360 1,253,249 729,014
=========== ========= =========== =========

--------------------------

*T

-0-
*T
(1) Excludes sales of residual gas and sales to landowners.

(2) Production quantities consist of the sum of (i) Atlas Energy's
proportionate share of production from wells in which it has a
direct interest, based on its proportionate net revenue interest
in such wells, and (ii) Atlas Energy's proportionate share of
production from wells owned by the investment partnerships in
which Atlas Energy has an interest, based on Atlas Energy's
equity interest in each such partnership and based on each
partnership's proportionate net revenue interest in these wells.

(3) "Mcf" and "mcfd" represent thousand cubic feet and thousand cubic
feet per day; "mcfe" and "mcfed" represent thousand cubic feet
equivalent and thousand cubic feet equivalent per day, and "bbl"
and "bpd" represent barrels and barrels per day. Barrels are
converted to mcfe using the ratio of six mcf's to one barrel.

(4) Atlas Energy acquired its Michigan assets on June 29, 2007, and
production volume from these assets has only been included from
that date.

(5) Atlas Energy's average sales price for gas before the effects of
financial hedging was $11.21 and $8.36 for the three months ended
June 30, 2008 and 2007, respectively, and $9.79 and $8.12 per Mcf
for the six months ended June 30, 2008 and 2007, respectively.

(6) Includes $2.9 million and $7.9 million of hydrocarbon hedge
proceeds which were not included as revenue in the three and six
months ended June 30, 2008, respectively. No such hydrocarbon
hedge proceeds were received through the three and six months
ended June 30, 2007.

(7) Production costs include labor to operate the wells and related
equipment, repairs and maintenance, materials and supplies,
property taxes, severance taxes, insurance and production
overhead.

(8) Atlas Pipeline acquired the Chaney Dell and Midkiff/Benedum
systems on July 27, 2007, and production volume from these
systems has only been included from that date.

(9) Atlas Energy's average sales price for oil before the effects of
financial hedging were $125.15 and $108.68 for the three months
and six months ended June 30, 2008. There were no oil financial
hedges for the three months and six months ended June 30, 2007.
*T

-0-
*T
ATLAS AMERICA, INC.
Ownership Interests Summary

Overall
Ownership
Atlas America Ownership Interests as of June 30, Interest
2008: Amount Percentage
------------------------------------------------ ---------- ----------

ATLAS ENERGY:
Class A units 1,293,486 2.0%
Class B common units 29,952,996 46.3%
Management incentive interests 100% N/A
----------
Total 48.3%
==========

ATLAS PIPELINE HOLDINGS(1):
General partner interest 100% N/A
Common units 17,808,109 64.4%
----------
Total 64.4%
==========

ATLAS PIPELINE:
Atlas America directly-owned common units 1,112,000 2.3%

LIGHTFOOT CAPITAL PARTNERS, GP LLC:
Approximate ownership interest 18.0%

------------------------------------------------
(1) Atlas Pipeline Holdings directly owns the following ownership
interests in Atlas Pipeline Partners:
General partner interest 100% 2.0%
Common units 5,754,253 12.0%
Incentive distribution rights 100% N/A
----------
Total Atlas Pipeline Holdings direct
ownership interests in Atlas Pipeline
14.0%
==========
*T

Atlas America, Inc., Philadelphia
Brian J. Begley, Investor Relations
215-546-5005
215-553-8455 (fax)

Copyright Business Wire 2008