DENVER, Colorado -- Tipperary Corporation (AMEX-TPY), an independent energy company, today announced results for its year and fourth quarter ended December 31, 2002.

The Company reported a net loss for 2002 of $4,811,000, or 12 cents per share, on revenue of $5,060,000 compared with net loss of $7,176,000, or 28 cents per share, on revenue of $3,557,000 for the year ended December 31, 2001.

For the fourth quarter, Tipperary reported a net loss of $665,000, or 2 cents per share, on revenue of $1,364,000 compared with a net loss of $2,594,000, or 9 cents per share, on revenue of $1,035,000 in the fourth quarter of 2001. During the fourth quarter of 2002, the Company recorded a gain of $1,400,000 associated with the sale of undeveloped properties.

Included in the results for 2002 are $2,166,000 in gains associated with the sale of two undeveloped domestic properties and the recovery of $282,000 of prepaid drilling costs. During 2001, the Company recorded a $900,000 non-cash impairment of prepaid drilling costs.

Total gas sales during 2002 were 3,765,000 Mcf compared with 2,439,000 Mcf in 2001. For the quarter, gas sales were 1,081,000 Mcf compared with 660,000 Mcf in the same quarter last year. Total gas equivalent volume sales in 2002 of 3,831,000 Mcf were 51 percent higher than gas equivalent volumes of 2,541,000 Mcf sold in 2001, primarily due to increased gas sales from existing wells and new wells drilled and connected on the Company's Comet Ridge project in Queensland, Australia.

"We are pleased to have completed the strategic transition from oil to gas production in 2002 with the disposition of our West Buna property in Texas," said David Bradshaw, Tipperary president and CEO. "While the transition resulted in a net loss for the year, we are pleased with our progress in accumulating natural gas assets. Gas sales volumes in Australia were up 58 percent in 2002, and we recorded 2.5 Bcf equivalent of new gas reserves in the United States. We are continuing to accumulate acreage in Colorado, which we believe is prospective for gas, while aggressively pursuing development drilling in Australia."

Tipperary Corporation is an independent energy company involved in exploration for, and production of, coalbed methane and conventional natural gas. Together with its affiliates, Tipperary holds a 73 percent interest in southeastern Queensland's Comet Ridge project and holds interests in other exploration permits in Queensland totaling approximately 390,000 acres. Domestically, Tipperary holds varying interests in several exploration projects in Colorado covering approximately 500,000 acres.

Information herein contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as "may," "will," "expect," "anticipate," "estimate," or "continue," or comparable words. In addition, all statements other than statements of historical facts that address activities that Tipperary expects or anticipates will or may occur in the future are forward-looking statements. Readers are encouraged to read the SEC reports of Tipperary, particularly its Annual Report on Form 10-KSB for the Year Ended December 31, 2002, for meaningful cautionary language disclosing why actual results may vary from those anticipated by management.