On March 1, 1996, at 1800 central standard time, a Piper PA-28-140, N95394, registered to an individual and operated by a private pilot, impacted the terrain shortly after takeoff from Atkinson Municipal Airport, Pittsburg, Kansas. The airplane sustained substantial damage. The pilot and one passenger reported no injuries. The local flight was operating in visual meteorological conditions. No flight plan was on file. The flight was on departure at the time of the accident. The pilot stated that both she and her passenger experienced periods of incapacitation during the accident sequence. Although neither occupant of the airplane sustained any injuries due to the impact both were hospitalized for observation and testing for carbon monoxide. The tests were positive and the results are attached to this report. Subsequent to the accident an examination of the exhaust system of the accident airplane was conducted. Three holes were found in the exterior of the muffler shroud. When removed, additional holes were found in the muffler itself. An annual inspection of the airplane had been conducted four hours prior to the accident on February 20, 1996.