press release

Texaco Press Release - Texaco Partners with the Nature Conservancy and SPVS on Project

FOR RELEASE: TUESDAY, SEPTEMBER 4, 2001

CURITIBA, Brazil- Texaco, The Nature Conservancy and SPVS (Society for Wildlife Research and Environmental Education) today announced their partnership on a new project to restore and protect approximately 2,500 acres (1,000 hectares) of Atlantic Rainforest on the coast of southern Brazil.

The project, known as the Antonina Pilot Reforestation Project, is made possible through a US$3 million investment by Texaco. The project site is in the municipality of Antonina in the state of Paraná. The land will be owned and managed by the Brazilian conservation organization SPVS. The Nature Conservancy, the international conservation organization that brought together this partnership, will provide technical assistance in the project's implementation.

"Texaco has provided support to The Nature Conservancy for more than 10 years," said António Correia de Pinho, Texaco Brasil Exploration & Production vice president. "We are pleased to build upon that relationship and begin a new partnership with SPVS and the surrounding communities to help conserve the environmentally significant areas that have been identified through this project. We want to help continue the work that is being done by these two organizations to help preserve one of the largest remaining areas of Atlantic Rainforest."

The land will be designated as a nature reserve under Brazilian law and will encircle the existing 5,600-acre Morro da Mina Nature Reserve (Mine Hill), which is also managed by SPVS. Morro da Mina includes a native plant nursery that produces 100,000 seedlings per year, and these seedlings will be used in the restoration of the degraded areas of the new reserve.

The new reserve will help protect the primary source of drinking water for Antonina's population of approximately 20,000 inhabitants. It will help provide habitat for jaguar, tapir and hundreds of other species. Notably, it will help protect the area's diverse array of birds, including six globally threatened species.

In addition to the protection of plant and animal habitats, the project hopes to create a scientifically based model to better understand the role that reforestation and the prevention of deforestation can play in responding to concerns about global climate change. A growing forest absorbs the greenhouse gas carbon dioxide (CO2) through photosynthesis and stores the carbon in its plants and soils. By restoring damaged areas and preventing further deforestation, the project will provide a net benefit to the global atmosphere.

"The Antonina Reforestation Pilot Project will help protect one of the most important and ecologically significant places on Earth," said Steve McCormick, president of The Nature Conservancy. "Moreover, it will provide a replicable model for how rainforest conservation and restoration can help combat climate change. We appreciate Texaco's involvement in this innovative effort."

"The project has multiple environmental benefits, including the creation and protection of the new reserve, protection of the water supply to to the town of Antonina, and a positive impact on global climate change," said Clovis Borges, executive director of SPVS.

Texaco- Operating in more than 150 countries worldwide, Texaco explores for and produces crude oil, natural gas and natural gas liquids; manufactures and markets high-quality fuels and lubricants; operates trading, transportation and distribution facilities; and produces alternate forms of technology for the conversion of coal, petroleum coke and other low-value hydrocarbons into a clean synthesis gas, which is used for the production of electric power as well as chemical products and industrial gases, including hydrogen. Texaco has marketed petroleum products in Brasil for more than 85 years, and currently supplies quality fuels, lubricants and services through some 2,800 Texaco-branded retail outlets located throughout the country. In 1997 Texaco entered the exploration and production sector of the industry in Brazil following government decisions to open the sector for foreign investment. For more information on Texaco and Texaco Brasil, visit the company website at www.texaco.com and www.texaco.com.br.

The Nature Conservancy's mission is to preserve the plants, animals and natural communities that represent the diversity of life on Earth by protecting the lands and waters they need to survive. To date, the Conservancy and its more than 1 million members have been responsible for the protection of more than 12 million acres in the United States, and for helping partner organizations preserve more than 80 million acres in Asia Pacific, Canada, the Caribbean and Latin America. The Nature Conservancy has helped protect 3 million acres in Brazil since 1988, and has offices in Brasilia, Curitiba and Sao Paulo.www.nature.org

SPVS (Sociedade de Pesquisa em Vida Selvagem e Educao Ambiental) is a Brazilian non-governmental, non-profit public interest organization. Founded in 1984, its mission is to work for the preservation of nature through protection of native areas, environmental actions and development of models for rational use of natural resources. Focused on the Atlantic Rainforest, the work of SPVS is concentrated on the cost of Paran, Brazil. And for its actions and project development, it relies on a multi-disciplinary body of experts and the support of national and international partners (governmental, non-governmental organizations, teaching and universities centers and private companies). Further details at site www.spvs.org.br.

Updated: September 2001