Tel Offshore Trust Makes Announcement

Business Wire, August 31, 2001

Business/Energy Editors

AUSTIN, Texas--(BUSINESS WIRE)--Aug. 31, 2001

Tel Offshore Trust (Nasdaq:TELOZ) announced today that the Trust has been advised by the Nasdaq Stock Market, Inc. that the units of beneficial interest in the Trust (the "Units") have been approved for listing on the Nasdaq SmallCap Market. Trading of the Trust Units on the Nasdaq will begin on Aug. 31, 2001. Previously, the Trust Units were quoted on the OTC Bulletin Board under the symbol "TELOZ." The Trust Units will cease trading on the OTC Bulletin Board at the close of business on August 30, 2001.

Nasdaq Marketplace rules require, among other financial requirements, a minimum of $750,000 net income in two of the last three fiscal years for listing on the Nasdaq SmallCap Market. The Trust's financial statements included in its annual report on Form 10-K for the year ended Dec. 31, 2000 reflected more than $750,000 in net income of the Trust for at least two of the last three fiscal years.

No assurance can be given as to whether the Trust will continue to satisfy the listing requirements of the Nasdaq Marketplace in future periods. Failure to satisfy such requirements could result in delisting procedures for the Trust Units.