press release

Texaco Press Release - Texaco and Jones Oils to Form Lubricants Marketing Joint Venture

FOR IMMEDIATE RELEASE: TUESDAY, SEPTEMBER 28, 1999

LONDON, England, September 28 - Texaco today further boosted its presence in the Eastern European lubricants market by announcing that it has signed a joint venture agreement with Bucharest-based company Jones Oils S.R.L. to form a lubricants marketing company in Romania.

Texaco will initially own 80 percent of the new venture, with Jones Oils holding the remaining 20 percent.

The new company, Texaco Lubricants Romania S.R.L. (TLR), which aims to be a market leader in Romania within two years, will sell a full range of Texaco's automotive and industrial lubricant products in 1,500 outlets throughout the country. The product, imported from the USA and Texaco's European plants, will be sold in high street shops, workshops, service stations and through direct deliveries to customers' premises. TLR will also be responsible for developing the market in Moldova.

Jointly headed by Managing Director Ryden Jones and Sales Director Cristian Caciulescu, TLR will develop a network employing more than 70 people.

Commenting on the agreement, Glenn F Tilton, Texaco Inc. Senior Vice President and President Global Business said, "This agreement is part of our ambitious development programme in a region with substantial demand and an increasingly quality-focused environment. Texaco is committed to the Romanian lubricants market and will be offering its customers the highest quality products, together with the outstanding customer service for which Texaco is renowned worldwide. "

Tilton further commented: "We are delighted to have joined forces with Jones Oils, whose management has more than fifteen years experience in the Romanian lubricants market. We look forward to working with them towards achieving our goal of becoming a market leader in Romania."

Texaco aims to achieve its aggressive growth programme in Romania by offering customers a high quality product, technical backup and support through an effective sales and distribution network. An innovative marketing campaign, which includes a press advertising campaign scheduled for this autumn, will be used to target the four million vehicle owners in Romania, the second largest market in Eastern Europe.

Updated: September 1999