Patriot Transportation Holding, Inc.

PATRIOT TRANSPORTATION HOLDING, INC. ANNOUNCES RESULTS FOR THE FIRST QUARTER OF FISCAL YEAR 2004.

Jacksonville, Florida; January 28, 2004 – Patriot Transportation Holding, Inc. (NASDAQ-PATR) reported net income of $1,318,000 or $.44 per diluted share for the first quarter ended December 31, 2003, an increase of $380,000 or 40.5% when compared to the same quarter last year.

First Quarter Operating Results. For the first quarter of Fiscal 2004, consolidated revenues were $27,888,000, an increase of $3,846,000 or 16.0% over the same quarter last year.

The transportation segment’s revenues for the first quarter of Fiscal 2004 were $23,771,000, an increase of $3,105,000 or 15.0% over the same quarter last year. Approximately $2,733,000 of this increase was a result of a 15.0% increase in miles hauled in the first quarter of 2004 over the same quarter last year. The balance of the increase was primarily due to higher fuel surcharges billed to mitigate rising fuel costs. The increase in miles hauled resulted primarily from a 35.5% increase in miles in the flatbed operations, from the same quarter last year. The increase in revenue miles was primarily due to higher freight demand in the construction materials industry.

Real estate revenues were $4,117,000 for the first quarter of Fiscal 2004, an increase of $741,000 or 21.9% from the first quarter of Fiscal 2003. Revenues from flex office-warehouse properties increased $500,000 or 25.7%, primarily due to a 16.1% increase in average leased square feet and minimal price increases. Royalties from mining contracts increased $241,000 or 16.8% primarily resulting from a 33.9% increase in aggregate tons mined as compared to the same quarter last year. There were no property sales in either quarter.

Consolidated gross profit for the first quarter of 2004 was $5,364,000, an increase of $1,035,000 or 23.9% from the first quarter of last year. Gross profit in the transportation segment increased $829,000 or 35.6% primarily due to the increased revenue, improved utilization of equipment and a higher loaded mile factor.

Gross profit in the real estate segment increased $206,000 or 10.3% from the first quarter of 2003 due to increased royalties from mining operations.

Net income was $1,318,000 or $.44 per diluted share for the first quarter of Fiscal 2004 compared to $938,000 or $.30 per diluted share for the same quarter last year.

Summary and Outlook. Real Estate development progress should continue, driven by an encouraging low interest rate outlook and enhanced by a recovering national economy. The Company’s transportation business anticipates improved results as general economic activity strengthens. Accident prevention will continue to be the number one priority. Florida Rock & Tank Lines, Inc. and SunBelt Transport, Inc. will continue to focus on increased equipment utilization, operating efficiencies and freight rate increases.

Patriot Transportation Holding, Inc. is engaged in the transportation and real estate businesses. The Company’s transportation business is conducted through two wholly owned subsidiaries. Florida Rock & Tank Lines, Inc. is a Southeastern transportation company concentrating in the hauling by motor carrier of liquid and dry bulk commodities. SunBelt Transport, Inc. serves the flatbed portion of the trucking industry in the Southeast, Midwest and Mid-Atlantic States, hauling primarily construction materials. The Company’s real estate group, through subsidiaries, acquires, constructs, leases, operates and manages land and buildings to generate both current cash flows and long-term capital appreciation. The real estate group also owns real estate which is leased under mining royalty agreements or held for investment.

PATRIOT TRANSPORTATION HOLDING, INC.

Summary of Consolidated Revenues and Earnings (Unaudited)

(In thousands except per share amounts)

Three Months

Ended

December 31,

2003

2002

Net sales

$27,888

$24,042

Gross profit

$5,364

$4,329

Income before income taxes

$2,160

$1,538

Net income

$1,318

$938

Earnings per common share:

          Basic

$.45

$.30

          Diluted

$.44

$.30

Weighted average shares outstanding:

          Basic

2,933

3,133

          Diluted

2,983

3,156

                             PATRIOT TRANSPORTATION HOLDING, INC.

Condensed Balance Sheets (Unaudited)

(Amounts in thousands)

   December 31,

September 30,

2003

2003

Cash and cash equivalents

$    1,328

$       757

Cash held in escrow

1,795

1,795

Accounts receivable, net

7,389

7,332

Other current assets

4,363

4,081

Property, plant and equipment, net

143,164

145,262

Other non-current assets

    6,199

5,989

             Total Assets

$164,238

$165,216

Current liabilities

$    9,590

$ 11,220

Long-term debt (excluding current maturities)

57,104

57,816

Deferred income taxes

10,760

10,760

Other non-current liabilities

7,402

7,391

Shareholders’ equity

79,382

78,029

            Total Liabilities and Shareholders’ Equity

$164,238

$165,216