press release

ChevronTexaco to concentrate Houston operations in downtown location

Cites cost-efficiencies of consolidation of Houston offices

HOUSTON, Feb. 25, 2004 -- Chevron U.S.A., a subsidiary of ChevronTexaco Corp. plans to purchase the 1500 Louisiana Street building in downtown Houston, and will consolidate most of its Houston operations and staff into the 40-story, 1.2 million-square-foot facility. The company also plans to purchase a 1,100 car parking garage connected to the building and an adjacent block of undeveloped land. Details of the transaction were not disclosed. Tim Relyea, Vice Chairman Cushman & Wakefield, Houston, is representing ChevronTexaco in the purchase.

Today's announcement was made at a press conference by Houston Mayor Bill White and ChevronTexaco executive Ray Wilcox at City Hall. Mayor White said the city was pleased that ChevronTexaco had decided to concentrate its operations in downtown Houston and that the decision will further help with the revitalization of the central business district.

Purchase of the building will allow the company to bring together at one location most of its 4,700 Houston employees and contractors and allow for future growth. The company will still maintain its offices and operations in Bellaire on Fournace Place, and its Briarpark Office at 3901 Briarpark Drive in west Houston. The company expects to realize cost efficiencies and productivity gains from moving out of space it now has in five other buildings in the Houston area.

ChevronTexaco said that bringing together most of its Houston workforce in one location will not only provide cost savings, but also allow for improvement of information sharing and technology usage. These two benefits are good business decisions that continue to move the company forward in its search for ways to improve operational and financial performance.

Houston was an important hub for both Chevron and Texaco before their merger in October 2001. Since the merger the company has been looking for a suitable location to consolidate most of its employees into one building. Each company had employees in several different office buildings throughout Houston, including two buildings downtown.

Approximately 1,800 ChevronTexaco employees work in downtown Houston now. The new building is expected to house about 3,700 employees when fully occupied. ChevronTexaco, the second largest U.S. oil company, is headquartered in San Ramon, Calif.

Updated: February 2004