The Partnership anticipates that the removal of the crude oil derivatives contracts will significantly reduce the risk to it of further charges due to increases in the price of crude oil where the price of crude oil has become less correlated with the prices of ethane and propane. Consequently, future cash flow should more accurately reflect the revenues generated from NGLs produced in the Partnership's natural gas processing operations.

The Partnership expects to return to the hedging strategy that it used prior to July 2007 - utilizing direct swaps, collars and/or puts for new hedges related to its ethane and propane production. Atlas Pipeline will continue to hedge its butane and natural gasoline production with direct or crude oil swaps, collars and/or puts. Atlas Pipeline intends to hedge no less than 50% of natural gas liquids value for the one year forward period, 33% for the second year forward period and 15% for the third year forward period on a rolling basis.

As a result of these planned transactions and assuming current commodity prices, Atlas Pipeline anticipates an increase in both its distribution coverage and in its distributable cash flow per unit after coverage for the second half of 2008. The Partnership is now anticipating distributable cash flow per unit after 1.3x coverage of $2.00 to $2.20 per unit, compared to its prior guidance of $1.90 to $2.00 per unit* after 1.2x coverage. In addition, Atlas Pipeline anticipates distributable cash flow after 1.3x coverage for the full year 2009 of $4.25 to $4.50 per common unit, a 12% increase over its previous full year 2008 guidance at 1.2x coverage. Because Atlas Pipeline's guidance is based upon the amount of derivatives contracts it actually terminates, which will depend upon commodity prices at the time of termination, Atlas Pipeline intends to update its guidance following the completion of the planned transactions.

* Represents one half of the previous guidance for full year 2008 distributable cash flow per unit.

                               Distributable cash flow per LP unit (1)
                               ---------------------------------------
                                Second Half 2008     Full Year 2009
                                    Guidance            Guidance
                               ------------------- -------------------
Atlas Pipeline Partners
------------------------------

   Prior guidance with 1.2x
    coverage                    $1.90 - $2.00 (2)          n/a

   Revised guidance with 1.3x
    coverage                      $2.00 - $2.20       $4.25 - $4.50

(1) After 2% general partner interest and the incentive distribution
     rights
(2) Represents one half of prior full year 2008 distributable cash
     flow per unit guidance

Upon termination of the derivatives contracts, Atlas Pipeline expects to incur an estimated charge against earnings for the second quarter of 2008 of approximately $10 million, based upon estimated current commodity prices. The anticipated dollar cost of the termination of the derivatives contracts is approximately $250 million.

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.

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

Certain matters discussed within this press release are forward-looking statements. Although Atlas Pipeline Partners, L.P. 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, inability of Atlas Pipeline to successfully integrate the operations at the acquired systems, regulatory changes, changes in local or national economic conditions, changes in commodity prices and other risks detailed from time to time in Atlas Pipeline's 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: Atlas Pipeline Partners, L.P.

Atlas Pipeline Partners, L.P.
Brian Begley
Investor Relations
(215) 546-5005
(215) 553-8455 (fax)
bbegley@atlasamerica.com