press release

Texaco Press Release - Texaco Announces Public Issuance of $200 Million

FOR RELEASE: TUESDAY, JULY 8, 1997.

WHITE PLAINS, N.Y., July 8 - Texaco Inc. announced that its wholly owned finance subsidiary, Texaco Capital Inc., is issuing $200 million of seven-year cash-settled convertible notes in a public offering entirely in Europe. Texaco Inc. will guarantee the securities. It is expected that the notes will be issued on or about August 5, 1997.

These securities, which mature on August 5, 2004, are being offered at par with an interest coupon rate of 3.5 percent, and are callable at par after two years. The notes will be convertible into cash, with the conversion price indexed to Texaco Inc.'s common stock price. This transaction will not involve the issuance of any Texaco shares.

Proceeds of the sale will be loaned to Texaco Inc. or its subsidiaries to be used for working capital, for retirement of debt and for other general corporate purposes.

The sale is being led by Credit Suisse First Boston (Europe), Limited. UBS Limited and SBC Warburg Limited also are underwriters of these securities.

Updated: July 1997