TEJAS SECURITIES GROUP, INC. RECOGNIZED IN SECOND QUARTER 2005 PIPE LEAGUE TABLES

AUSTIN, TX,- Tejas Securities Group, Inc.,a wholly owned subsidiary of Tejas Incorporated (OTC BB: TEJS), today announced that it was recognized as the #2 investment bank in the country in the PIPE market for total dollars raised during the second quarter of 2005. Sagient Research Systems noted that Tejas had raised $408.5 million during the second quarter of 2005. Kurt Rechner, President and Chief Operating Officer, noted, "We are extremely pleased to once again be recognized as one of the leading investment banks in the country in the PIPE market. This reinforces our success and commitment to growing our investment banking business as part of expanding our franchise."

Company Information Tejas Securities Group, Inc., a Texas corporation ("Tejas Securities"), is a wholly owned subsidiary and a primary business operating unit of Tejas Incorporated, a publicly traded financial services company. Tejas Securities is a full service brokerage and investment banking firm that focuses on the following: (i) proprietary research on distressed debt and special situation securities, (ii) trading and other brokerage services to value-based institutional and retail investors active in fixed income and equity instruments, and (iii) corporate finance and strategic advisory services to middle-market companies within our target industries. To learn more about Tejas Securities, please visit the Company’s web site at www.tejassec.com. Safe Harbor Statement This press release may contain forward looking statements. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date of this news release. Important factors that could cause actual results to differ materially from such forward-looking statements are described in the most recent Forms 10-K and 10-Q and other SEC filings of Tejas Incorporated. Neither Tejas Incorporated nor Tejas Securities undertake any obligation to publicly update any forward-looking statements. Contact: Craig Biddle cbiddle@tejassec.com (512)-306-5218