press release

Texaco Press Release - Texaco Partners with Concert for Global Communications Improvements

Company Awards Multi-Year Contract for Bandwidth Expansion and Telecommunications Enhancements

FOR RELEASE: WEDNESDAY, APRIL 26, 2000.

WHITE PLAINS, N.Y., April 26 - Texaco announced today the formation of a strategic alliance with Concert, the AT&T/British Telecom (BT) global venture, to increase its bandwidth capabilities and consolidate its global telecommunications infrastructure in support of the company's expanding e-business activities.

A $44 million, multi-year contract was awarded to Concert for global voice, data and video communications services, which will be used to integrate all of Texaco's telecommunications needs around the world into a single network. In addition, Internet and Asynchronous Transfer Mode (ATM) services provided by Concert will enable fast and secure data, voice and multimedia transmissions. Together, these changes will facilitate the company's corporate-wide e-business and e- procurement initiatives, as well as offer Texaco the opportunity to migrate service to an Internet protocol (IP) platform.

"This strategic alliance with Concert provides Texaco with the cutting edge solutions we need to capture greater efficiencies in our existing operations and the ability to quickly launch additional business-to-business and business-to-consumer ventures," explained Gregory M. Vesey, Vice President, E-Business for Texaco. "Additionally, it will afford us early access to the latest technologies from the Concert, AT&T and BT laboratories related to e-business infrastructure issues."

The increased bandwidth provided by the Concert ATM network will allow Texaco to extend its volume of data, voice and multimedia communications globally - a critical need in the company's e-business strategy. Texaco will also be able to provide additional customized services and accelerate the development of e-business solutions with partners and suppliers. ATM applications can be used for global supply chain management, virtual teaming and knowledge management functions, such as instantaneous data sharing from exploratory wells located around the world.

Kevin Ackling, Vice President, Concert Global Accounts, said, "We are delighted to have formed this partnership with Texaco. Concert believes technology is a major factor in which companies win or lose in the information age and it's clearly an essential tool for industries such as petroleum. This portfolio of services will enable Texaco to implement a range of e-business initiatives to help the company's internal operations as well as service to its customers."

Texaco has operations in more than 150 countries and had 1999 revenues of more than $35 billion. The company and its affiliates find and produce crude oil and natural gas; manufacture and market high-quality fuel and lubricant products; operate transportation, trading and distribution facilities; and produce alternate forms of energy for power and manufacturing.

Concert, a $7 billion (USD) 50/50 global venture of AT&T and BT, serves the global communications needs of multinational customers, international carriers and Internet Service Providers worldwide. Concert has the industry's broadest portfolio of voice, data and Internet services. It has a direct sales force serving 270 multinational customers (MNCs). Through its network of 47 distributors, it also targets an additional 30,000 customers worldwide. Concert's frame relay network serves every major city in the United States and United Kingdom, and extends to an additional 170 cities in 53 countries. Its global public network directly reaches 237 countries - more than any other existing network. For more information about Concert, visit the company's website at www.concert.com.

Updated: April 2000