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Atlas America, Inc. And Atlas Pipeline Holdings, L.P. Agree to Purchase Atlas Pipeline Partners, L.P. Common Units in a Private Placement

Posted on: Wednesday, 18 June 2008, 09:01 CDT

Atlas America, Inc. (NASDAQ: ATLS) ("Atlas America") announced today that it has agreed to purchase $40 million of common limited partner units of Atlas Pipeline Partners, L.P. (NYSE: APL) ("Atlas Pipeline") in a private placement offering. In addition, Atlas Pipeline Holdings, L.P. (NYSE: AHD) ("Atlas Holdings") will purchase $10 million of Atlas Pipeline's common units in a private placement offering. Atlas Holdings will finance its purchase of Atlas Pipeline common units through a separate private placement transaction with Atlas America, which will purchase $10 million of Atlas Holdings common limited partner units.

Atlas Pipeline plans to use the proceeds from the private placements with Atlas America and Atlas Holdings to terminate certain crude oil derivatives agreements that are associated with the ethane and propane portion of Atlas Pipeline's natural gas liquids volume.

The common units that are being sold in the private placement have not been registered under the Securities Act of 1933, as amended, and may not be sold in the United States absent registration or an applicable exemption from registration requirements. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Atlas America, Inc. owns an approximate 47% common unit interest and all of the Class A and management incentive interests in Atlas Energy Resources, LLC, and a 64% interest in Atlas Pipeline Holdings, L.P., a limited partnership which owns the general partner interest in Atlas Pipeline Partners, L.P., and all the incentive distribution rights and 5.5 million common units of APL. For more information, please visit our website at www.atlasamerica.com, or contact Investor Relations at bbegley@atlasamerica.com.

Atlas Pipeline Holdings, L.P. 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 5.5 million common units of Atlas Pipeline Partners.

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, northern and western Texas and the Texas panhandle, the Partnership owns and operates eight 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 and eastern Ohio. For more information, visit our 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. and Atlas Pipeline Holdings, L.P. believe 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 and Atlas Holdings' reports filed with the SEC, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K.

Source: Business Wire

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