press release

Texaco Press Release - Texaco and Shell Complete Retail Asset Swapin Greece and the UK


London, August 1 - Texaco and Shell International Petroleum Company Limited today announced the successful completion of an agreement to swap retail and commercial assets of equal commercial value in Greece and the United Kingdom. The two companies previously announced that they had signed a letter of intent on 23 November 1999.

Under the agreement, which is effective immediately, Texaco has exchanged its network of service stations and commercial assets in Greece for 80 Shell service stations in the United Kingdom and Shell's share of the Plymouth Terminal, a joint venture with BP-Amoco, subject to legal formalities.

Commenting on the successful completion of the agreement, Jim Hawn, Texaco Ltd.'s Managing Director, Marketing and Manufacturing, said: "This asset swap is the latest stage in the consolidation of Texaco's marketing interests in North West Europe. The 80 newly-acquired sites in the UK will increase Texaco's branded market share to above 10 percent, a major milestone for the company, and will further enhance the scales of efficiencies of our UK network."

Texaco remains committed to its lubricant, marine and aviation businesses in Greece, which are not included in this arrangement.

The majority of the 80 newly-acquired sites are in the Midlands and South of England and will be added to Texaco's company-owned and operated network, increasing the total number of branded sites in the UK and Ireland to almost 1,500. The sites will be re-branded at a rate of 24 a week, starting on Monday 31 July, with completion expected by the end of August.

This press release contains a forward-looking statement within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In particular, statements made concerning Texaco's expected performance and financial results in future periods are based upon Texaco's current expectations and beliefs and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

The following factor known to Texaco, among others, could cause Texaco's actual results to differ materially from those described in the forward-looking statements: inability to complete the re-branding of the service stations by the end of August. In addition, you are encouraged to review Texaco's latest reports filed with the SEC, including Texaco's Annual Report on Form 10-K filed with the SEC on March 30, 2000, which describes a number of additional risks and uncertainties that could cause actual results to vary materially from those listed in the forward-looking statements made in this press release.

Updated: August 2000