More Than 10,000 Texaco Stations Expected to Be Converted to Shell

HOUSTON, Feb. 8 -- The following was issued today by Equiva Services:

With the purchase of Texaco's assets in the U.S. downstream business nearly finalized, today affiliates of Shell Oil Company announced the launch of one of the largest re-branding efforts ever undertaken in the U.S.

This week, Texaco-branded retailers and wholesalers operating some 13,000 stations across the country were sent letters on the re-branding effort. The vast majority of Texaco stations in the U.S. are expected to be re-branded as Shell.

The re-branding effort, expected to cost more than $500 million, is one element of a larger plan to reinvigorate the Shell brand in the U.S. and improve financial performance. Other elements include a nationwide effort to convert existing Shell stations to a new global retail graphics and design standard and a focus on operational excellence and cost efficiencies to improve competitiveness.

``We're not just converting from another brand to Shell,'' said Russell Caplan, who will serve as vice president of retail for both U.S. Shell affiliates, Equilon Enterprises LLC -- which, upon closing, will become Shell Oil Products US -- and Motiva Enterprises LLC. We're transforming Shell in the U.S. at the same time. This is a very dynamic time with considerable momentum surrounding the Shell brand, our retailers, wholesalers and customers.``

Shell Oil Products US and Motiva will have exclusive rights to the Texaco mark for use at retail gasoline stations through June, 2004 and then on a non- exclusive basis until June, 2006. Concerning the lubricants portion of the business, Shell will have non-exclusive use of Texaco-branded lubricants for 18 months after the transaction is closed.

New promotional materials have been developed for retailers and wholesalers to support the brand conversion process. The materials communicate the benefits of joining Shell, provide an overview of the conversion process and introduce the diverse, global presence and marketing power of the Shell brand.

Shell Oil Products US and Motiva Enterprises LLC refine and market gasoline and other petroleum products under both the Shell and Texaco brand names across the U.S., providing product to about 22,000 Shell- and Texaco- branded retail and wholesale outlets, the vast majority of which are independently owned and operated. Shell Oil Products US also offers a complete line of lubricants and services to both end-users and distributors, including trucking, industrial, and commercial segments in addition to both the do-it-yourself and do-it-for-me automotive markets.

On February 6, the Federal Trade Commission approved Shell Oil Company's acquisition of Texaco Inc.'s interests in Equilon to make it the 100% owner. Also, Shell and Saudi Refining, Inc. (SRI) will acquire Texaco's interests in Motiva, giving Shell and SRI each a 50% interest. The transaction is expected to close in the near future.