press release

Texaco Press Release - Caltex to Change Functional Currency for Korean and Japanese Operations


WHITE PLAINS, N.Y., Dec. 19 - The following announcement was made today by Caltex Petroleum Corporation:

Irving, TX, Dec. 19 - Caltex Petroleum Corporation announced today that it has changed the functional currency used to account for its Korean and Japanese operations, effective October 1, 1997, due to changed regulatory conditions for petroleum products in those countries.

Caltex has adopted the U.S. dollar as the functional currency for Korea and Japan, consistent with its practice in all of its other major markets. This change will favorably impact Caltex's fourth quarter income and stockholders' equity related to the currency translation of the operations of its Korean affiliate.

Caltex is jointly owned by Chevron Corp. and Texaco Inc. Through its subsidiaries and affiliates, Caltex refines and markets petroleum products in about 60 countries in the Asia-Pacific region, Africa and the Middle East. Caltex holds a 50 percent interest in LG-Caltex Oil Corporation, a Korean refining and marketing company, and in Koa Oil Company Ltd., a Japanese refining concern.

Updated: December 1997