Energy Operations

The Company remains active in its original business: the production of natural gas and, to a much lesser extent, oil from wells principally in Ohio, Pennsylvania, and New York.

In September 1998, the Company acquired The Atlas Group, Inc. ("Atlas"), a privately held Pittsburgh-based company. For more than 25 years Atlas has been a leading participant in the energy finance industry. Over that time, Atlas has offered numerous energy related investment products through a nationwide network of broker/dealers, currently managing approximately $282.0 million of energy assets. In conjunction with this activity, Atlas has participated in each of the more than 1,600 wells it has drilled in the Appalachian Basin, retaining an interest in the production and providing operating services for each of the wells. Atlas has also constructed and operates more than 650 miles of gas gathering pipelines which serve those and other wells.

With the addition of Atlas' operations, the Company now manages more than 84 joint ventures and partnerships. It operates and holds interests in more than 2,500 predominately gas wells with proved, developed and producing reserves of 53.3 billion cubic feet of gas equivalent, owns and/or operates more than 1,250 miles of natural gas gathering pipeline and holds mineral rights underlying more than 406,000 acres of land.

Atlas Technologies, LLC, a 50%-owned subsidiary of Resource America, provides advanced information management solutions for energy-related businesses. The Company's products and services range from needs analysis, system design, and programming, to testing, documentation, implementation, and technical support.