EBITDDA (earnings before interest, taxes, depreciation, depletion and amortization) for the fourth quarter and fiscal year ended September 30, 2002 was $6.9 million and $35.7 million, respectively, as compared to $10.3 million and $46.2 million for the fourth quarter and fiscal year ended September 30, 2001, respectively. EBITDDA without the charge for the settlement would have been $7.9 million and $36.7 million for the fourth quarter and fiscal year ended September 30, 2002, respectively. The Company also reports record revenues for fiscal 2002 of $120.8 million.

In connection with the Company's release from many of the terms of the covenant not to compete with the successor purchaser of its equipment leasing subsidiary, Fidelity Leasing, Inc. (sold in August 2000 for $583.0 million including the assumption of $431.0 in debt) and in settlement of various claims arising from the sale, the Company has realized a $9.4 million loss net of taxes from discontinued operations. As a result of escrow provisions established at the time of sale, the Company believes that this settlement will result in a net cash cost to the company after taxes of $3.1 million. This settlement will leave the Company's present equipment leasing subsidiary, LEAF Financial Corporation, free to exploit what the company believes to be substantial growth opportunities in expanding its asset management business.

For the fourth quarter and fiscal year ended September 30, 2002, the Company reported a net loss of $8.6 million and $3.3 million, respectively, as compared to a loss of $123,000 and net income of $9.8 million for the fourth quarter and fiscal year ended September 30, 2001, respectively. Net loss per common share-diluted was $.49 and $.19 for the fourth quarter and fiscal year ended September 30, 2002, respectively, as compared to a loss of $.01 and net income of $.53 for the fourth quarter and fiscal year ended September 30, 2001, respectively.

Resource America, Inc. is a proprietary asset management company that uses industry specific expertise to generate and administer investment opportunities for its own account and for outside investors in the energy, real estate finance and financial services industries. At September 30, 2002, the Company managed approximately $1.2 billion in these sectors as follows:

Energy assets: $360.3 million
Real estate finance assets: $628.4 million
Financial services assets: $169.2 million

Overall Highlights for the Fourth Quarter and Fiscal Year Ended September 30, 2002:

Energy revenues were $23.5 million and $97.9 million in the fourth quarter and fiscal year ended September 30, 2002 as compared to $21.8 million and $94.8 million for the fourth quarter and fiscal year ended September 30, 2001, an increase of $1.7 million (8%) and $3.1 million (3%).

EBITDDA (earnings before interest, taxes, depreciation, depletion and amortization) from the Company's energy operations was $6.7 million and $26.4 million for the fourth quarter and fiscal year ended September 30, 2002 as compared to $5.9 million and $31.6 million for the fourth quarter and fiscal year ended September 30, 2001, an increase of $771,000 (13%) for the quarter ended September 30, 2002 and a decrease of $5.2 million (16%) for the year ended September 30, 2002.

Company owned oil and gas reserves measured in billions of cubic feet equivalents (bcfes) were 134.5 at September 30, 2002 as compared to 128.9 at September 30, 2001 an increase of 5.6 bcfes (4%).

The PV-10 estimate of proved energy reserves was $132.5 million at September 30, 2002 as compared to $127.3 million at September 30, 2001, an increase of $5.2 million (4%).

Company managed oil and gas reserves measured in billions of cubic feet gas equivalent (bcfge) were 317.1 at September 30, 2002 as compared to 303.6 at September 30, 2001, an increase of 13.5 bcfge (4%).

Company owned oil and gas production increased from 7.4 bcfe in fiscal year 2001 to 8.2 bcfe in fiscal year 2002, an increase of .75 bcfe (10%). · Sold three real estate loans in the year ended September 30, 2002 with an outstanding loan value of $34.8 million resulting in a gain of $2.4 million.

Launched SR Real Estate Investors, L.P., a $20 million limited partnership that intends to acquire primarily multi-family residential rental properties.

Initiated discussions involving the sale or recapitalization of 10 real estate loans with an aggregate appraised value in excess of $300.0 million.

Total revenues for the fiscal year ended September 30, 2002 were a record $120.8 million, as compared to $118.3 million for the fiscal year ended September 30, 2001, an increase of $2.5 million (2%).

The share price of RAIT Investment Trust (AMEX:RAS), a sponsored affiliate, increased 47.3% during the fiscal year ended September 30, 2002 and an additional 8.9% through December 30, 2002. As a result, the Company has recognized an increase in the value of its holdings of $10.3 million during this period. In addition, the Company received $3.3 million in dividends during the fiscal year ended September 30, 2002.

Subsequent to September 30, 2002, we sold 163,500 shares of our RAIT stock for $3.4 million, realizing a pre-tax gain of $969,000.

The share price of Atlas Pipeline Partners, L.P., (AMEX: APL) a publicly traded natural gas pipeline master limited partnership of which we are the general partner and principal owner, increased 5.8% during the fiscal year ended September 30, 2002 and an additional 7.0% through December 30, 2002.

Repurchased 172,950 shares of our common stock subsequent to September 30, 2002 at an average price of $8.49 and a range of $7.70 to $9.33.

Completed Trapeza Partners I, L.P. and Trapeza Partners II, L.P., of which we are a managing member, which raised $65.9 million in limited partner units to invest in a pool of diversified trust preferred securities to be managed by the Company and its unaffiliated partner. Subsequently, the Company and its unaffiliated partner closed its first Collateralized Debt Obligation secured by $330 million of trust preferred securities. The Company and its unaffiliated partner will act as general partner of Trapeza Partners I & II, L.P. and as collateral manager of Trapeza CDO I. The Company anticipates closing its second CDO in February 2003.
Statements made in this release include forward-looking statements, which involve substantial risks and uncertainties. The Company's actual results, performance or achievements could differ materially from those expressed or implied in this release. For information pertaining to risks relating to these forward-looking statements, reference is made to the section “Risk Factors” contained in Item 1 of the Company's Annual Report on Form 10-K. The remainder of this release contains the Company's audited consolidated balance sheets, statements of operations and certain unaudited information relating to its revenues recognized and costs and expenses incurred in the Company's energy and real estate finance operations during the periods indicated.