Penn Octane Corp. Announces Results for Second Quarter 1998

Business Wire, March 17, 1998

REDWOOD CITY, Calif.--(BUSINESS WIRE)--March 17, 1998--Penn Octane Corp. (NASDAQ SmallCap market:POCC) today reported net income for the three and six months ended Jan. 31, 1998, of $258,677 and $134,229 or $0.03 per share (based on 8.7 million weighted average common shares outstanding) and $0.02 per share (based on 8.6 million weighted average common shares outstanding), respectively.

Revenues for the three and six months ended Jan. 31, 1998, were $10.1 million and $18.3 million, respectively. Net income (loss) for the three and six months ended Jan. 31, 1997, were $249,026 and $(438,262) or $0.05 per share (based on 5.2 million weighted average common shares outstanding) or $(0.08) per share (based on 5.1 million weighted average common shares outstanding), respectively on revenues of $13.5 million and $16.1 million, respectively. The volume of LPG gallons sold during the three and six months ended Jan. 31, 1998, increased 15% and 51%, respectively over the same period one year earlier.

After adjusting for the company's CNG-related business, the net income associated with the company's LPG business for the six months ended Jan. 31, 1998, was $317,446, representing a significant improvement over the same period Jan. 31, 1997, as a result of the effects from the company's efforts to improve operating efficiencies, and the successful negotiation of a sales agreement for each of the years beginning Oct. 1, 1996, and 1997.

Penn Octane is a leading supplier of liquefied petroleum gas to Mexico and propylene to the petrochemical industry in Texas. Penn Octane operates a 132-mile, six-inch pipeline from a pipeline in Kleberg County, Texas, to its terminal in Brownsville, Texas, which acts as a trans-shipment point for delivery to Mexico. In addition, the company owns and operates PennWilson CNG Inc., located in Santa Fe Springs, Calif., a leader in compressed natural gas station design, engineering, manufacturing and safety.

CONTACT: Penn Octane Corp., Redwood City

Jerry Richter, 650/368-1501