press release

Unocal's 76 Products Company Announces Alliance With Cardlock Fuels System

Costa Mesa, Calif., Aug. 14, 1996 -- Unocal 76 today announced it has established a new company with Cardlock Fuels System, a member of the Southern Counties Oil Companies. Terms of the agreement were not disclosed.

The new company -- trading under the name 76 Cardlock Fuels, LLC -- will construct, develop and operate unattended, co-branded commercial fueling facilities (cardlocks) in California. These new sites, supplied by Unocal, will complement the existing 200 Cardlock Fuels System sites and the 1,200 Unocal 76 retail convenience centers.

"This alliance has many benefits for both companies, and certainly boosts our position in the fleet fueling business," said Lawrence M. Higby, president of Unocal's 76 Products Company. "It's a major part of our continuing effort to offer a wide range of quality, branded services for our customers."

"This is the next step in the evolution of fleet fueling," said Frank P. Greinke, CEO of Cardlock Fuels System and the Southern Counties Oil Companies. "As the first company to commence commercial card fueling, we are pleased to join in this innovative branded alliance with 76 Products Company."

The Unocal 76 and Cardlock Fuels alliance will seek its own customers and issue its own co-branded Cardlock access cards. Current commercial customers of 76 Products Company, the new company and Cardlock Fuels System will all have access to the new sites, as well as the existing Unocal 76 and Cardlock Fuels locations.

The new company has already identified a number of sites which can now be readied for permitting, representing the first step toward its initial objective of 20 new sites in the next two years. These modern, distinctive sites will be owned and managed for the benefit of the two parent companies and their commercial customers, and will feature both the 76 and Cardlock Fuels logos.

Orange County-based 76 Products Company, the marketing, refining, product supply and transportation unit of Unocal Corporation, offers gasoline plus a variety of convenience products and services to customers through a network of approximately 1,200 branded Unocal 76 retail sites in the West and Hawaii. The company operates three California refineries with a crude oil processing capacity of 250,000 barrels per day.

Cardlock Fuels System is the commercial card fueling company for Southern Counties Oil Companies. Cardlock Fuels System sells fuel to commercial fleets through its proprietary network of over 200 stations in four western states. The other Southern Counties Oil Companies are: Southern Counties Oil Co.; Total Energy Products; Fleet Fuels, LLC; the Greko International Oil Company; and the Asia-Pacific Refining Consortium, LLC. This diversified group of companies conduct bulk fuel trading; bobtail fueling; fleet fueling; commercial fuel sales, and bulk and packaged lubricant sales throughout California and the eight western states. It also has marketing and distribution efforts in the former Soviet Union and the People's Republic of Laos.

Updated: August 1996