press release

Unocal to record 4Q 2001 price-related impairments

El Segundo, Calif., Jan. 24, 2002 - Unocal Corporation (NYSE: UCL) today said it anticipates that its fourth quarter 2001 earnings will include an $86 million non-cash aftertax charge for impairment of certain Gulf of Mexico shelf properties, due principally to lower commodity prices.

In addition to the above special item, Unocal will record a $24 million aftertax charge for environmental and litigation matters. These negative special items are partially offset by a $17 million aftertax gain from the sale of a Gulf of Mexico production property and a $5 million aftertax gain in mark-to-market accruals for non-hedge commodity derivatives.

The company expects that fourth quarter adjusted aftertax earnings per share, excluding special items, will be in line with previously announced expectations, adjusted for lower crude oil and natural gas prices. The current Thompson/First Call consensus of estimates for Unocal's 4Q 2001 operating earnings is 25 cents per share.

Including special items, Unocal expects to report a net loss for the fourth quarter 2001.

Unocal plans to announce its fourth quarter 2001 earnings on Jan. 29 prior to start of trading on the New York Stock Exchange.

About Unocal Corporation

Unocal is one of the world's leading independent natural gas and crude oil exploration and production companies. The company's principal oil and gas operations are located in North America (Gulf of Mexico region, Permian Basin, Alaska and Canada) and in Asia (Thailand, Myanmar, Indonesia, Bangladesh and Azerbaijan). The company is also pursuing exploration programs in Brazil and West Africa. Unocal is one of the world's largest producers of geothermal energy with operations in the Philippines and Indonesia.

This news release contains certain forward-looking statements about future earnings and operating results. These statements are not guarantees of future performance. The statements are based upon Unocal'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. Actual results could differ materially as a result of factors discussed in Unocal's 2000 Form 10-K and subsequent reports filed with the U.S. Securities and Exchange Commission. Unocal undertakes no obligation to update the information in this news release.

Investors are urged to consider closely the disclosure in Unocal's 2000 Form 10-K and other reports (SEC File No. 1-8483). Copies of the company's SEC filings are available from the company by calling 800-252-2233 or from the SEC by calling 800-SEC-0330. The reports are also available on the Unocal web site.

Updated: January 2002