press release

ChevronTexaco and Dynegy in Discussions Regarding Commercial Natural Gas Agreements

Discussions do not involve natural gas processing and liquids contracts

SAN FRANCISCO, Oct. 29, 2002 -- ChevronTexaco Corp. (NYSE: CVX) today announced that it is in discussions with Dynegy (NYSE: DYN) to negotiate an early termination of the contracts under which Dynegy Marketing and Trade purchases substantially all of ChevronTexaco's lower-48 U.S. natural gas and supplies the natural gas requirements of ChevronTexaco refineries and other corporate facilities. These discussions were initiated at Dynegy's request following Dynegy's decision to conduct an orderly exit from the gas marketing and trading business.

These discussions do not involve the natural gas processing and liquids agreements between ChevronTexaco and Dynegy Midstream Services, the company's natural gas liquids business unit involved in gathering, processing, fractionation, marketing or feedstock supply.

The current term of the natural gas agreements runs through August 2006. ChevronTexaco and Dynegy are discussing the possibility of an early termination accompanied by an orderly transition, but an agreement has not been reached at this time. Dynegy has said it will continue to meet all its contractual obligations to ChevronTexaco unless and until other arrangements have been agreed upon and made. A key part of the discussions is to ensure that any agreement reached would have no adverse effect on customers.

Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.

This news release contains forward-looking statements that are based on management's current expectations, estimates and projections. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Among such factors is the possibility that an agreement will not be concluded. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, ChevronTexaco undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Updated: October 2002