press release

Texaco Press Release - Texaco Terminates Business Combination Discussions

Chevron Offer Unacceptable in All Respects
Board Confident of Company's Continuing Ability to Grow Shareholder Value

FOR IMMEDIATE RELEASE: WEDNESDAY, JUNE 2, 1999.

WHITE PLAINS, NY, June 2 – Texaco Inc. (NYSE: TX) announced that its Board of Directors today directed the company's management to terminate discussions with Chevron Corp. (NYSE: CHV) regarding a possible business combination.

The Texaco Board found no compelling basis for discussions to continue, and Chevron's proposal to be unacceptable for reasons including complexity, feasibility, risk and price.

Texaco's Board also expressed its confidence in the company's ability to continue building shareholder value, and noted the many attractive opportunities available to the company. Texaco intends to move forward aggressively to execute its business plan.

Updated: June 1999