Patriot Transportation Holding, Inc.

PATRIOT TRANSPORTATION HOLDING, INC. ANNOUNCES IMPROVED OPERATING RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF FISCAL YEAR 2004.

Jacksonville, Florida: April 27, 2004 -- Patriot Transportation Holding, Inc. (NASDAQ-PATR) reported net income of $6,975,000 or $2.34 per diluted share for the second quarter of Fiscal year 2004, an increase of $6,353,000 compared to the same quarter a year ago. Income from continuing operations increased $698,000, or 112.2% over the same quarter last year. Gain from discontinued operations was $5,655,000 versus none during the second quarter of last year.

Net income for the six months ended March 31, 2004 was $8,291,000 or $2.79 per diluted share, an increase of $6,731,000 over the same period last year. Income from continuing operations for the six months ended March 31, 2004 increased 69% to $2,636,000.

Second Quarter Operating Results. For the second quarter of Fiscal 2004, consolidated revenues were $28,626,000, an increase of $3,553,000 or 14.2% over the same quarter last year.

The transportation segment’s revenues for the second quarter of Fiscal 2004 were $24,280,000, an increase of $2,968,000 or 13.9% over the same quarter last year. This increase was a result of a 12.8% increase in miles hauled over the same quarter last year. The increase in miles hauled resulted primarily from a 9.3% increase in miles hauled in the tankline division and a 19.7% increase in miles hauled in the flatbed division, reflecting higher customer demand.

Real estate revenues were $4,346,000 for the second quarter of Fiscal 2004, an increase of $585,000 or 15.6% from the second quarter of Fiscal 2003. Royalties from mining contracts increased $219,000 or 15.7% primarily due to a 23.6% increase in tons mined. Revenues from flex office-warehouse properties increased $432,000 or 18.8%, primarily due to a 16.4% increase in average leased square feet and, to a lesser extent, minimal price increases. Real estate revenues included property sales of $65,000 in the second quarter of 2003 and no property sales in the second quarter of 2004.

Consolidated gross profit for the second quarter of 2004 was $5,123,000, an increase of $1,208,000 or 30.9% from the second quarter of last year. Gross profit in the transportation segment increased $959,000 or 49.5% achieved by the increased revenue and a steady level of fixed costs. Gross profit in the real estate segment increased $249,000 or 12.6% from the second quarter of 2003 due to increased royalties from mining operations and additional gross profit from newly developed commercial properties.

Selling, general and administrative expense increased $145,000 or 7.2% for the second quarter of 2004 compared to the same period last year. On a comparative basis, selling, general and administrative expense as a percent of consolidated revenues, was 7.8% as compared to 8.0% last year.

Income from continuing operations was $1,320,000 or $.44 per diluted share for the second quarter of Fiscal 2004, an increase of $698,000 from the same quarter last year.

A gain from discontinued operations of $5,655,000 net of income taxes was recorded during the quarter, as a result of the sale of land and improvements to a related party for $13,000,000.

Net income was $6,975,000 or $2.34 per diluted share for the second quarter of Fiscal 2004 compared to $622,000 or $.20 per diluted share for the same quarter last year.

Six Months Operating Results. For the first half of Fiscal 2004, consolidated revenues were $56,513,000, an increase of $7,398,000 or 15.1% over the same period last year.

The transportation segment’s revenues for the first half of Fiscal 2004 were $48,052,000, an increase of $6,074,000 or 14.5% over the same period last year. The revenue increase is primarily due to a 7.9% increase in miles hauled in the tankline division and a 27.1% increase in miles for the flatbed division. These increases reflect higher customer demand over the same period last year.

Real estate revenues were $8,461,000 for the first half of 2004, an increase of $1,324,000 or 18.6% from the first half of 2003. Royalties from mining contracts increased $457,000 or 16.2% primarily resulting from a 38.2% increase in tons sold. Revenues from flex office-warehouse properties increased $933,000 or 21.9%, primarily due to a 16.3% increase in average leased square feet and, to a lesser extent, price increases. Real estate revenues included property sales of $65,000 in the first half of 2003 and no property sales during the first half of 2004.

Consolidated gross profit increased $2,241,000 or 27.2% for the first half as compared to the same period last year. Gross profit in the transportation segment increased $1,788,000 or 41.9% as a result of the increased revenue and steady level of fixed costs. Gross profit in the real estate segment increased $453,000 or 11.4% from the first half of 2004 due to increased royalties from mining operations, as well as additional gross profits from newly developed commercial properties.

Selling, general and administrative expense increased $387,000 or 9.7% for the first half of 2004 compared to the same period last year. On a comparative basis, selling, general and administrative expense as a percent of consolidated revenues, was 7.7% compared to 8.1% last year.

The Company recorded an income tax provision of $1,616,000 in the first half of 2004 compared to $997,000 in the same period last year. The effective tax rate decreased to 38% in 2004 from 39% in 2003.

Income from continuing operations was $2,636,000 or $.89 per diluted share for the first half of Fiscal 2004 compared to $1,560,000 or $.50 per diluted share for the first half of last year.

Discontinued operations reflects a gain of $5,655,000 net of income taxes, as a result of the sale of land and improvements to a related party for $13,000,000.

Net income was $8,291,000 or $2.79 per diluted share for the first half of Fiscal 2004 compared to $1,560,000 or $.50 per diluted share for the same period last year.

Summary and Outlook. The Company’s real estate and transportation businesses are both experiencing an improved economic climate as the result of a strengthening regional and national economy. While low interest rates continue to enhance overall business conditions, the Company’s real estate development operations are encountering stronger levels of inquiry from prospective tenants for the Company’s flexible office/warehouse product.

Demand for hauling services has also strengthened for the Company’s transportation business. Improved demand and pricing is especially occurring for the Company’s flatbed trucking operations which haul primarily construction materials. Adverse impacts from escalating diesel fuel costs, driver availability, and burdensome health and liability insurance costs will continue to challenge the trucking industry.

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 petroleum products and other 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, comprised of FRP Development Corp. and Florida Rock Properties, Inc., 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.

	Three Months		Six Months
	Ended		Ended
	March 31		March 31
	2004	2003	2004	2003

Revenues	$28,626	25,073	$56,513	49,115
Gross profit	$ 5,123	3,915	$10,486	8,245
Income before income taxes	$ 2,094	1,019	$ 4,252	2,557
Income from continuing operations	$ 1,320	622	$ 2,636	1,560
Gain from discontinued operations	$ 5,655	-	$ 5,655	-
Net income	$ 6,975	622	$ 8,291	1,560
Earnings per common share:
Income from continuing operations
Basic	$.45	.20	$.90	.50
Diluted	$.44	.20	$.89	.50
Gain from discontinued operations
Basic	$1.93	-	$1.93	-
Diluted	$1.90	-	$1.90	-
Net income
Basic	$2.38	.20	$2.83	.50
Diluted	$2.34	.20	$2.79	.50
Weighted average common shares outstanding:
Basic	2,931	3,053	2,932	3,093
Diluted	2,979	3,077	2,976	3,118

                             PATRIOT TRANSPORTATION HOLDING, INC.

Condensed Balance Sheets (Unaudited)

(Amounts in thousands)

March 31

September 30

2004

2003

Cash and cash equivalents

$       435

$       757

Cash held in escrow

12,887

1,795

Accounts receivable, net

7,973

7,332

Other current assets

3,771

4,081

Property, plant and equipment, net

137,102

145,262

Other non-current assets

     6,259

    5,989

             Total Assets

$168,427

$165,216

Current liabilities

$ 16,963

$ 11,220

Long-term debt (excluding current maturities)

44,976

57,816

Deferred income taxes

13,410

10,760

Other non-current liabilities

7,408

7,391

Shareholders’ equity

85,670

78,029

Total Liabilities and Shareholders’ Equity

$168,427

$165,216

The Company has identified two business segments, Transportation and Real Estate. All of the Company’s operations are located in the Southeastern and Mid-Atlantic states and each is managed separately along product lines. Operating results for the Company’s business segments are as follows:

	Three Months Ended				Six Months Ended
	March 31				March 31
	2004		2003		2004		2003

Transportation Revenues	$24,280	21,312		$48,052		41,978
Real Estate Revenues	$ 4,346	3,761		$ 8,461		7,137

Total Revenues	$28,626	25,073		$56,513		49,115


Transportation Operating Profit	$ 1,121	323		$ 2,467		1,068
Real Estate Operating Profit	$ 2,226	1,978		$ 4,430		3,976
Corporate Expenses