press release

Texaco Press Release - Texaco Signs Global Lubricants Supply Agreement with AB Volvo


HOUSTON, Dec. 21 - Texaco and AB Volvo today announced the signing of a global lubricant supply contract, covering the areas of research and development, initial fill, aftermarket and manufacturing plant lubrication.

Under the agreement, Texaco will become a preferred supplier of initial fill and aftermarket lubricants to AB Volvo, opening the way for Texaco to bid for country-by-country Volvo business around the world. In some markets, Texaco lubricants will be sold under the Volvo brand name.

Texaco and AB Volvo, one of the world's largest producers of trucks, buses and construction equipment, will also work on co-operative lubrication research. Texaco's European lubricant, coolants and fuels additives research and development department is located in Ghent, Belgium.

Magnus Koch, AB Volvo's Purchasing Director NAP (Non Automotive Purchasing), commented "Volvo sets itself the highest technical, quality and environmental standards, and we expect the same from our suppliers. Texaco has an internationally recognized reputation as a manufacturer of lubricants and the commitment to excellence and cutting edge technology of Texaco's Research and Development laboratory in Ghent, made the company an ideal partner for Volvo."

The agreement, which follows a decision by AB Volvo to rationalize and improve efficiency within its global lubricant supplier base, will cover all manufacturing operation areas, including trucks, buses, construction equipment, marine and industrial power systems.

"Texaco's technology driven lubricants and coolants business forms a perfect fit with AB Volvo's image of high technology products," said Scott Brown, President of Texaco Global Products. "Furthermore, Texaco's strong environmental focus matches Volvo's main ambitions identified in its annual environment report."

The two companies will evaluate the conversion of Volvo manufacturing plant lubrication business to Texaco including a program that will provide training to Volvo personnel working with Texaco industrial lubricant programs.

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, 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: December 2000