press release

Unocal announces tender offer for $700 million of outstanding debt securities

El Segundo, Calif., May 15, 1997 -- Unocal Corporation today announced the commencement of a tender offer by its Union Oil Company of California subsidiary to purchase any and all of three issues of Union Oil debt securities with an aggregate principal amount of $700 million. All issues are guaranteed as to payment of principal and interest by Unocal.

For each debt security, the purchase price in the offer will be the price resulting from a yield to maturity equal to a fixed spread over the yield of a Reference U.S. Treasury Security at the time a holder agrees to tender the debt securities. The debt securities, fixed spreads and Reference U.S. Treasury Securities are specified in the table below.

Union Oil Debt Security Outstanding Principal Amount Fixed Spread Reference U.S. Treasury Security
9-3/4% Notes due 12/1/2000 $250 million +15 basis points 5.625% Note due 11/30/2000
8-3/4% Notes due 8/15/2001 $200 million +18 basis points 6.500% Note due 8/31/2001
9-1/4% Debentures due 2/1/2003 $250 million +22 basis points 6.250% Note due 2/15/2003

The offer commences today and will expire at 5:00 p.m., New York time, on May 22, 1997, unless extended. Salomon Brothers Inc, Goldman, Sachs & Co., Lehman Brothers and Morgan Stanley & Co. Incorporated are acting as dealer managers for the tender offer.

On March 31, 1997, Unocal sold its West Coast refining, marketing and transportation assets. The company anticipates that the debt securities will be purchased with cash on hand, including some of the proceeds received from the earlier asset sale.

For more information, holders of debt securities should call Salomon Brothers' Liability Management Group at (800) 558-3745.

This announcement is neither an offer to purchase nor a solicitation of an offer to sell the debt securities. The offer is made only by the Offer to Purchase dated May 15, 1997.

Updated: May 1997