FOR IMMEDIATE RELEASE


           CONCORD ENERGY INCORPORATED TO REORGANIZE UNDER CHAPTER 11

JOURDANTON,  TX - August 28, 1998: Concord Energy  Incorporated  (NASDAQ:  CODE)
today  announced that it and its  subsidiary  Knight  Equipment &  Manufacturing
Corporation ("KEMCO") have filed voluntary petitions to reorganize under Chapter
11 of the U.S.  Bankruptcy  Code in  Federal  Bankruptcy  Court in San  Antonio,
Texas.

The  Company  said that it will  continue  to operate  in the  normal  course of
business during the bankruptcy  proceeding and that it is pursuing  alternatives
for debtor-in-possession  ("DIP") financing.  KEMCO has reached an agreement for
interim DIP  financing,  subject to court  approval,  and it is  pursuing  other
alternatives  which may involve the sale of assets of KEMCO as well as other DIP
financing.

Chairman  and CEO  Deral  Knight  said  that  the  Board of  Directors  reviewed
strategic  options and  determined  that a  restructuring  of the Company in the
context of a Chapter 11 reorganization afforded the Company the best opportunity
to return it to profitability  and to provide a maximum recovery for all parties
in interest.

The Company is an integrated oil and gas service company that also has interests
in oil and gas properties.  The Company's KEMCO subsidiary designs,  reengineers
and markets oil and gas processing equipment. Concord's IPS subsidiary markets a
proprietary  information  software  system  that  automates  and  expedites  the
dissemination of oil and gas production data.

This press release  contains  forward-looking  statements that involve risks and
uncertainties,  including but not limited to,  projections  of future  operating
results,  the financial  condition of the Company,  bankruptcy court approval of
those actions  requiring  such  approval,  and other risks detailed from time to
time in the Company's Securities and Exchange Commission filings.

Company Contact:                            Deral Knight, CEO, (830) 769-3955


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