press release

Texaco Press Release - Texaco Forms Lubricants Marketing Company in Slovakia


LONDON, ENGLAND, Sept. 11 - Texaco today announced the formation of a company to market lubricants within Slovakia and export into Hungary. The move supports the company's strategy to increase its lubricants market presence across Central and Eastern Europe.

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The newly-formed company, Texaco Lubricants Slovakia a.s., will be based in Bratislava with two regional offices outside the capital, and a further five Slovakian-based sales managers responsible for Hungarian export business. Vladimir Rolko, Texaco's current Slovakian distributor, has been appointed General Director, Texaco Lubricants Slovakia a.s.

The business will be divided into three dedicated areas - passenger car market which includes parts shops, service stations, independent workshops and dealerships; truck and bus markets in both public and private sectors; and the manufacturing industry and specialist metalworking facilities. Texaco's Havoline and Ursa lubricants ranges will be imported directly from its manufacturing facilities in Europe and distributed via a direct sales force in Slovakia and both sales representatives and sub distributors in Hungary.

Commenting on the announcement, Thomas S. Neslage, President, Texaco Global Products, said: "The establishment of this new company is another step in our development programme for Central and Eastern Europe and follows recent investments in the Romanian and Bulgarian markets."

Peter Oakford, Regional Director, Texaco Global Products, added: "We have shown our commitment to growing our business in these markets through direct investments. Critical to our success in this 60,000 tonnes-per-annum Slovak lubricant market is the provision of technical support and quality products at a competitive price, backed up with a strong brand name, and outstanding delivery and customer service for which Texaco is renowned worldwide."

An aggressive marketing programme, including a combination of media and public relations, special events and promotional activities, will commence in September. The focus will be on Texaco's local market knowledge, effective sales channels, strong brand presence and technical expertise.

Note: This press release contains a number of forward-looking statements 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 factors known to Texaco and its partners, among others, could cause Texaco's actual results to differ materially from those described in the forward-looking statements: decreased local demand for motor fuels, natural gas and other products; above or below-average local temperatures; local, worldwide and industry economic conditions; inaccurate forecasts of crude oil, natural gas and petroleum product prices; increasing price and product competition; price fluctuations; higher costs, expenses and interest rates; strikes and other industrial disputes; production restrictions; import and export controls; price controls; environmental, health and safety regulations; foreign exchange rate changes; and restrictions as to convertibility of currencies. 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 24, 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: September 2000