Patriot Transportation Holding, Inc.

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PATRIOT TRANSPORTATION HOLDING, INC. ANNOUNCES OPERATING RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF FISCAL 2001.

Jacksonville, Florida; May 2, 2001 -- Patriot Transportation Holding, Inc. (NASDAQ-PATR) reported net income of $750,000 ($.24 per diluted share) and $2,879,000 ($.91 per diluted share) for the second quarter and first half, respectively, of fiscal year 2001 as compared to $499,000 ($.15 per diluted share) and $1,049,000 ($.31 per diluted share) for the same periods last year.

Second Quarter Operating Results. Consolidated revenues for the second fiscal quarter ending March 31, 2001, increased 45.6% to $31,392,000 from $21,566,000 in the same quarter last year. Transportation revenues for the quarter increased 50.5% to $27,708,000 from $18,407,000 in the same quarter last year as a result of a 40.4% increase in miles hauled and a modest increase in pricing over the same quarter last year. The Companys third-party agent/owner-operator subsidiary, Patriot Transportation, Inc., accounted for 86.3% of the increase in miles hauled. The balance of the increase in miles hauled came mainly from growth in the tank line operations which also benefited from modest price increases. Real estate revenues for the second quarter of fiscal 2001 were $3,684,000, an increase of $525,000 from the same quarter last year primarily as a result of increased rental income from commercial properties due to more space being available for lease and price increases on some existing properties as well as higher royalties due to increased mining. These increases were partially offset by a decrease in property sales of $195,000 from the same quarter last year.

Consolidated gross profit increased by $1,733,000 to $5,552,000 for the second fiscal quarter of 2001. The Transportation Groups gross profit for the second quarter of fiscal 2001 was $3,175,000, an increase of 50.8% over the same quarter last year. This increase was primarily attributed to the increased miles hauled and improved margins due to price increases and improved fuel surcharges in the tank line business along with modest gross profits generated by the third-party transportation subsidiary. The Real Estate Groups gross profit improved 38.7% from the same quarter last year to $2,377,000 as a result of increased royalties from the mining properties, increased rental income from newly developed properties and increased rents from some existing properties.

Selling, general and administrative expense for the quarter increased by $1,276,000 to $3,440,000 from $2,164,000 in the same quarter last year. A continuing adverse economic climate dictated an additional $600,000 increase in allowance for uncollectible accounts receivable and advances in the new third-party transportation subsidiary. The balance of the increase is primarily due to additional administrative support for the start-up of the new transportation subsidiary, settlement of litigation in the transportation group and costs associated with establishing in-house information technology resources. Administrative expense as a percent of consolidated revenues, excluding property sales, was 11.0% compared to 10.2% in the same quarter last year.

Net interest expense increased 3.0% to $861,000 from $836,000 in the same quarter last year due to higher average interest rates and additional borrowings in the Real Estate group. Net income increased to $750,000 or $.24 per diluted share from $499,000 or $.15 per diluted share last year.

First Half Operating Results. Consolidated revenues for the six months ended March 31, 2000 were $62,092,000 reflecting an increase 48.8% over the $41,716,000 reported for the first half of last year. Revenues include $2,727,000 of property sales this year versus $315,000 last year. Gross profit improved 69.1% to $12,560,000 from $7,426,000. Administrative expenses increased $1,856,000 (45.0%) and net interest expense increased $200,000 (12.7%) compared to the first half of last year. Net income was $2,879,000 ($.91 per diluted share) compared to $1,049,000 ($.31 per diluted share) for last years first half. The improved results of operations were due to increases in miles hauled and better pricing in the transportation group combined with increased rental income from new and existing properties, additional royalties and property gains in the real estate group.

Summary and Outlook. The Companys two business segments, transportation and real estate, have continued to experience divergent impacts from a weakened national economy. Real estate revenues, profits and growth momentum have all remained strong and encouraging. Transportation, however, continues to be seriously buffeted by adverse factors ranging from high fuel expenses, increased liability insurance costs and deteriorating demand for dry freight at two of its subsidiaries, SunBelt Transport, Inc. and Patriot Transportation, Inc., which is the Companys new third-party transportation business. Operating challenges throughout national dry freight markets are creating an increasingly difficult environment for dry freight trucking companies of all sizes. Predictions for sharply increased fuel costs over the summer do not indicate optimism for near-term easing. Therefore expectations for improvement in the Companys transportation segment must remain cautious until the operating climate begins to brihten.

Patriot Transportation Holding, Inc. is engaged in the transportation and real estate businesses. The Companys transportation business is conducted through three 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 and Mid-Atlantic States, hauling primarily construction materials. Patriot Transportation, Inc. hauls a variety of cargo, primarily in the United States, through independent sales agents and owner/operators. The Companys 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.

Patriot Transportation Holding, Inc.
Summary of Consolidated Revenues and Earnings - Unaudited
(Amounts in thousands except per share amounts)

Three Months Ended
March 31

Six Months Ended
March 31

Revenues
Gross Profit
Income before income taxes
Net income

Earnings per common share:
  -Basic
  -Diluted

Weighted average shares outstanding:
  -Basic
  -Diluted

2001

$31,392
$5,552
$1,250
$750

$.24
$.24

3,144
3,147

2000

$21,566
$3,819
$818
$499

$.15
$.15

3,340
3,361

2001

$62,092
$12,560
$4,798
$2,879

$.91
$.91

3,175
3,175

2000

$41,716
$7,426
$1,720
$1,049

$.31
$.31

3,371
3,393

Investors are cautioned that statements in this press release which relate to the future are, by their nature, subject to risks and uncertainties that could cause actual results and events to differ materially from those indicated in such forward-looking statements. These include general business conditions, competitive factors, political, economic, regulatory, climatic, pricing, energy costs and technological contingencies. Additional information regarding these and other risk factors and uncertainties may be found in the Company's filings with the Securities and Exchange Commission.