---

Travel Ports of America Reports Q1 Results

15 September 1998

Travel Ports of America Reports First Quarter Results; 29th Consecutive Quarter of Profit; Record Net Income; Non-fuel Sales Increase

    ROCHESTER, N.Y.--Sept. 15, 1998--Travel Ports of America Inc. (Nasdaq NM:TPOA) said that a strong increase in higher margin non-fuel sales contributed to record net income for its first quarter ended July 31, 1998, the company's 29th consecutive quarterly profit.
    According to the announcement made by President John M. Holahan, net income for the quarter increased to $0.14 per share basic/$0.11 diluted, as a result of a four percent increase in sales from its restaurants, stores and repair shops, as well as a four percent increase in overall fuel sales. While diesel gallons sold increased four percent from the same period in fiscal 1998, sales dollars of diesel decreased by more than $3.8 million due to lower retail prices of diesel as a result of lower fuel costs. The lower gross profit margins from diesel fuel were offset by an improvement in gross profit margins on non-fuel sales.
    For the first quarter ended July 31, 1998, the company reported sales of $52.9 million with net income of $913,000, or $0.14 per share basic/$0.11 diluted, compared with net income of $901,000, or $0.15 per share basic/$0.12 diluted on sales of $56.4 million for the first fiscal quarter of 1998. The decrease in this year's first quarter per-share data was the result of the issue of $2 million of 7.81 percent convertible senior subordinated debentures, the conversion of some 8.5 percent debentures into common stock and the exercise of warrants and stock options, which increased the number of shares outstanding, compared with the same three-month period last year.
    Holahan commented, "After 29 quarters of profit and two years of advancing earnings, the stock market is placing a multiple to our earnings per share of less than 10 times, which we believe is low, given our achievements. During the last three months, we have made progress in increasing gross profit margins on non-fuel sales and have continued to aggressively evaluate acquisition candidates and new sites for additional plazas.
    "In addition," he said, "we are still in negotiations to acquire Perk Development Corp., an owner/operator of approximately 40 Perkins Family Restaurants, out of bankruptcy."
    Chief Financial Officer William Burslem said that the July 31, 1998 balance sheet showed shareholder equity of $20.4 million, or approximately $2.36 per share on a diluted basis. He said that the company's earnings in the trailing twelve months were $0.37 per share on a basic basis, and $0.30 per share diluted compared with $0.32 per share basic/$0.26 per share diluted for the previous twelve-month period.
    Travel Ports of America operates full-service travel plazas in seven states, with operations in fueling (diesel and gasoline), truck repair, restaurants, lodging and other travel services. The company currently has operations in New York, New Jersey, Pennsylvania, New Hampshire, North Carolina, Maryland and Indiana.

    The statements in this news release that relate to future events or performance, including statements about potential acquisitions, franchising possibilities, improvements in earnings and growth rates are forward-looking statements that involve risks and uncertainties, including risks associated with uncertainties related to commercial acceptance of the company's products and services, the availability of acquisition candidates and/or financing, and other risks identified in the company's SEC filings. Actual results may differ from those described in these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.

                     TRAVEL PORTS OF AMERICA INC.
                  Consolidated Statement of Incomes
                           (Unaudited)

                                         Three Months Ended
                                             July 31, 
                                         1998          1997

Net sales and operating revenue     $ 52,910,737   $56,397,785
Cost of goods sold                    39,548,611    43,036,822
Gross profit                          13,362,126    13,360,963  
Operating expense                      9,864,486     9,762,266  
General and administrative expense     1,306,541     1,309,305 
Interest expense                         745,618       809,722
Other income, net                        (43,621)      (58,271) 

                                      11,873,024    11,823,022

Income before taxes                    1,489,102     1,537,941
Provision for taxes on income            575,800       636,700
Net income                              $913,302      $901,241 

Per share data:

Net income per share -- Basic              $0.14         $0.15
Net income per share -- Diluted            $0.11         $0.12

Shares outstanding -- Basic            6,531,069     6,047,737
Shares outstanding -- Diluted          8,626,136     8,039,023