press release

Chevron Press Release - Chevron Corp. Applauds Dynegy-Illinova Merger

SAN FRANCISCO, Feb. 2, 2000 -- Chevron Corp. today issued the following statement applauding the merger between Dynegy Inc. and Illinova Corp., which was completed yesterday.

(Chevron has invested an additional $200 million in the new Dynegy, resulting in a 28 percent stake.)

"We're pleased with the Dynegy -- Illinova combination and the resulting opportunities that will arise through the merged company," said Chevron Chairman Dave O'Reilly. "Our interest in Dynegy complements Chevron's core business portfolio and serves as part of our overall growth strategy.

"We believe Dynegy's energy convergence strategy utilizing power and natural gas marketing and trading, as well as power generation, will continue to expand and return favorable earnings to Chevron."

As part of Chevron's interest in Dynegy, it will retain three positions on the merged company's board of directors. These officers are Patricia Woertz, president of Chevron Products. Co., Darry Callahan, president of Chevron Chemical Co., and Dick Matzke, Chevron Corp. vice chairman, who joined the board effective Feb. 1.

"The combined strengths and entrepreneurial spirit of Dynegy and Illinova will position Dynegy for further growth and diversification in this exciting and emerging field," said Matzke.

Chevron's participation in Dynegy dates back to 1996, when Chevron combined its natural gas and natural gas liquids businesses with then NGC Corp., Dynegy's predecessor. The resulting company was re-named Dynegy Inc. in June 1998 to recognize its evolution from a natural gas marketer to a dynamic company with a range of energy products and services.

Updated: February 2000