press release

Chevron Press Release - Chevron Division Buys Viscosity Improver Business

SAN RAMON, Calif., Oct. 5, 1998 -- Oronite Additives, a division of Chevron Chemical Co. LLC, today announced that it has acquired the assets of Exxon Chemicals Paratone® crankcase olefin copolymer (OCP) Viscosity Index Improver (VII) business. The purchase price was not disclosed.

Oronite acquired Paramins Paratone® VII for use in crankcase lubricant applications in all types of automobile, truck, locomotive and other engines. By adding VII, a single-grade oil can be made into a multi-grade oil, such as 10W-40, which is thin at low temperatures and thick at high temperatures. Customers are oil companies and independent lubricant producers that include crankcase OCP Viscosity Index Improvers as part of the petroleum additives package to produce finished lubricants.

This is a strategic acquisition that immediately establishes Oronite as the VII market leader and provides an excellent boost to our aggressive growth plans in the automotive engine oil additives business, said James R. Lieto, vice president of Chevron Chemical and general manager of Oronite. Customers around the world recognize Paratone® products for their superior quality and excellent value. Oronite is now in a position to better serve its customers and meet their needs for finished oil formulations.

Exxon agreed to divest its VII business to clear the way for regulatory approval of the planned Paramins Business Unit lubricant and fuel additives joint venture with Shell Additives. The new company, called Infineum, is to start up in January 1999, said George A. Rizzo, president of Exxon Chemical Americas.

The purchase includes the Paratone trademark, patents and technical information in the crankcase OCP VII field, Paratone brand names and formulations, customer lists for existing business and VII inventory. Oronite also acquired rights to technology, technical know-how and commercial relationships. Additionally, Exxon will supply Oronites worldwide OCP polymer needs for Viscosity Index Improver applications.

Chevron Chemical, a wholly owned subsidiary of Chevron Corp., is headquartered in San Ramon, Calif. Oronite is a leading developer, manufacturer and marketer of lubricant and fuel additives.

Updated: October 1998