press release

Texaco Press Release - Texaco and Elf Lubrifiants Announce Formation of European Coolants

New Company Will Be Second Largest Coolants Marketer in Europe

FOR RELEASE: TUESDAY, SEPTEMBER 8, 1998.

HOUSTON AND PARIS, Sept. 8 - Texaco and Elf Lubrifiants today announced that their subsidiary companies, S.A. Texaco Belgium N.V. and Elf Oil Belgium N.V., have agreed to form a 50/50 joint venture company that will manufacture and market automotive, commercial and industrial coolants throughout Europe.

The new entity combines the significant technical, manufacturing and marketing strengths of Texaco and Elf, resulting in operating efficiencies that will serve as a platform for growth throughout this important market. The joint venture has received the approval of the Commission of the European Communities and is expected to be operational in the fourth quarter of 1998.

In a joint statement concerning the venture, President & General Manager of Texaco Global Products LLC, Thomas S. Neslage; and Elf Lubrifiants President Jean-Jacques Mosconi, said, "By uniting the complementary strengths of these two organizations, we will become the second largest marketer of antifreeze/coolant and also number two supplier to the original equipment manufacturers throughout Europe. We will create a new entity with economic potential far greater than what we could achieve individually. The result will be a company with the ability to provide our customers with the highest quality products coupled with a long term commitment to superior levels of service and technical support."

Under the terms of the agreement, Texaco's worldwide research laboratory in Ghent, Belgium will provide the technical support and perform the fundamental research for the venture. Coolant production will be provided from the venture's modern and flexible blending plant located at Elf's manufacturing facility in Antwerp, Belgium.

The company will be based in Antwerp, and will market coolant products to original equipment manufacturers, petroleum companies, independent blenders and mass marketers. However, the respective sales organizations of Elf and Texaco will continue to supply under their own brand through the retail distribution channel. The companies do not expect any impact on employment levels as a result of the formation of this joint venture.

No other assets or businesses of either Texaco or Elf are included in this new company. The overall value to the transaction was not disclosed.

Updated: September 1998