press release

PetroCosm Launches Online Marketplace for Oil and Gas Industry

Internet marketplace provides products and services to energy companies worldwide

FOR RELEASE: TUESDAY, JULY 18, 2000

The following Press Release was issued by PetroCosm.

HOUSTON, July 18 – PetroCosm Corporation, a global business-to-business e-commerce marketplace for the oil and gas industry, is now live at www.petrocosm.com.

PetroCosm, the industry-owned online marketplace, provides a level playing field where oil and gas companies of all types, sizes and geographic locations can benefit from trading products and services online. From drilling equipment, electrical supplies, pipe, valves and fittings to professional, engineering, consulting and construction services, participants will find the PetroCosm marketplace is easy to use and easy to tailor to their specific needs.

"Our goal is to establish a truly independent, neutral market that serves the interests of both buyers and sellers equally while also addressing the needs of an international business," said Norman C. Chambers, PetroCosm president and chief executive officer, who was recruited from Halliburton Company. "The interest has been tremendous and were working to bring more users online."

Through PetroCosm, energy companies can reduce transaction costs, increase productivity, reach new customers and suppliers, and gain a competitive advantage. A unique in-house customer support call center – available 24 hours a day, seven days a week supported by experienced PetroCosm personnel provides – participants with quick answers by phone.

Yesterday, PetroCosm conducted a reverse English auction for Texaco, through which the company purchased drilling equipment. "We're excited to be up and running with the first transaction under our belt. We expect the number of buyers, sellers and transactions to increase exponentially as the petroleum industry sees the value and growth potential that PetroCosm can deliver," Chambers said.

Valve Systems and Controls is one of the early PetroCosm marketplace participants. "Selling through PetroCosm gives us the opportunity to expand our customer base, develop new markets and reduce costs and paperwork. PetroCosm's people know the energy industry – from both the buy and sell sides – and they're e-commerce experts. The staff has been very helpful in working with us so we can take full advantage of e-commerce benefits. We expect PetroCosm to become an important part of our marketing operation," said John Brennan, president and CEO, Valve Systems and Controls.

"PetroCosm's technology foundation is particularly impressive," said Dave Clementz, President of Chevron e-Business Development Co. "In building this marketplace we and our technology partners are creating a base that offers incredible flexibility to grow the system and its capabilities based on our participants needs." Chevron is a founding partner of PetroCosm.

In addition to its Houston base, PetroCosm is creating locally owned and managed hubs in major petroleum markets throughout the world. These hubs will serve as regional marketplaces that respect local culture, language and business practices. At the same time, the hubs will link regional participants to international markets, offering companies support in areas such as tax, regulatory issues, international product specifications and distribution, as well as technological and customer service support.

"Our goal is to make PetroCosm truly global – and that takes more than simply providing an Internet connection. We will be opening regional sales and customer support centers as the backbone of our international online marketplace," Chambers said. PetroCosm currently has regional offices in London, Aberdeen, Singapore and Bombay (Mumbai) and is continuing to expand its global presence.

Currently PetroCosm offers the following services: procurement, auctions, consulting, community integration, catalog, back office integration, Web/application services, business process and a customer relations management tool. New features to be introduced include supply chain planning, financial and settlement services, and advertising. The PetroCosm marketplace will continue to expand to address customer needs in such areas as logistic services, engineered products and services selection, inventory management, surplus supply optimization services, asset trading and specialized staffing services.

"Founded in early 2000, PetroCosm was developed with assistance from Chevron Corp., Texaco Inc., Ariba, Inc., Crosspoint Venture Partners and Requisite Technology, Inc. KPMG Consulting, LLC helped build PetroCosm's technical architecture and marketplace. With strong financial backing, proven technology and a highly experienced staff of more than 100 energy and Internet professionals, PetroCosm is well-positioned to grow," said Chambers.

"These companies have made a significant commitment to PetroCosm and have been instrumental in the successful launch of its innovative energy online marketplace," Chambers said. "Their participation provides a solid foundation for the continued growth of our industry-owned, global market designed to provide a level playing field and broad benefits to the oil and gas industry."

Texaco plans to use PetroCosm to conduct business transactions. "PetroCosm's business model creates a marketplace that can be easily accessed by large and small companies throughout the world," said Gregory Vesey, Texaco's vice president of e-business. "From a strategic standpoint, this marketplace offers increased market efficiencies for buyers and sellers and presents us with tremendous opportunities for working with our business partners."

PetroCosm and its supporting companies intend to remain on the oil and gas e-business forefront by employing leading edge technology. They intend to continue to introduce new solutions that provide value by integrating and streamlining business processes. PetroCosm expects to expand its strategic alliances with service providers to create a single interface for all business transactions. This combination of advanced technologies and service alliances will open new markets for suppliers and increase buyer flexibility.

PetroCosm, which has created an equity structure that encourages industry ownership and broad participation from both buyers and sellers of all sizes, is in the process of enrolling additional partners. It also plans to allow for local ownership of its regional hubs in key oil and gas basins around the world, thus assuring global neutrality.

About PetroCosm Corporation

PetroCosm is a global, independent online marketplace for the energy industry, linking buyers and sellers of oil and gas products and services. Headquartered in Houston, it has offices in London, Aberdeen, Singapore and Bombay. www.petrocosm.com.

DISCLAIMER: This press release contains projections and other forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934, as amended. These projections and statements reflect the current views of PetroCosm and the other companies referred to herein with respect to the business and prospects of PetroCosm and such companies. No assurances can be given, however, that these projections and forward-looking statements will be achieved, and actual results could differ materially from those projected.

Updated: July 2000