Correction Notification: Exxon Mobil Corporation Announces New Global Structure / Updated Forecast By Mid-December

The following was issued today by Exxon Mobil Corporation (NYSE: XOM): Today Exxon Mobil Corporation launched its new worldwide global structure. A news release regarding this follows. Key points in the news release include: -- The corporation will employ an organization structure built on a concept of eleven separate global businesses. -- A new update on synergy benefits is expected by mid- December; preliminary studies over the last 10 months suggests the near-term benefits will likely be higher than the $2.8 billion annually announced in December of last year. -- 140 transition teams composed of 1,500 Exxon and Mobil employees have completed a significant amount of merger work. -- The corporation's global headquarters are officially up and running in Irving, Texas. Functional business line headquarters in Houston and Fairfax also are in operation. -- Five global upstream companies, the Chemical company and the Coal and Minerals company will be located in Houston. -- Four global downstream companies will be based in Fairfax, Virginia. -- All three Exxon, Esso and Mobil brands will be retained. -- L. R. Raymond, former Chairman and Chief Executive Officer of Exxon, is Chairman and Chief Executive Officer. -- L. A. Noto, former Chairman and Chief Executive Officer of Mobil, is Vice Chairman. -- The 19-member Board will include six directors from Mobil and 13 from Exxon. Exxon Mobil Corporation announced today that it has launched a new organization structure built on a concept of eleven separate global businesses designed to allow the company to compete more effectively in a changing worldwide energy industry. Lee Raymond, Chairman and Chief Executive Officer of the corporation, also said that by mid-December the company will announce a revised forecast of merger benefits that will likely exceed the $2.8 billion annual level announced last year. Regarding the synergy benefits the companies announced in December of 1998 Raymond said, "At that time, we announced an expectation that the near-term benefits would total $2.8 billion annually, on a pre-tax basis. Since that time, our business transition teams have done a lot more planning and analysis around how to combine the two companies and, at the same time, reorganize how we manage the business -- with a clear goal of maximizing the company's overall performance. We are convinced that the combined company will achieve a higher return on capital than either company could have done alone. "Much of what has been done since last December has, in effect, focused on maximizing synergy benefits. We now have a much better understanding of what we can achieve, how we can achieve it and how much it could be worth. We have not yet, however, turned that understanding into an updated forecast. Our plan is to do some post-closing work -- with an expectation that we will be able to announce a revised forecast of synergy benefits by mid-December. I will tell you that all we have seen and all we have found during the past 10 months suggests that the updated number will likely be higher than the $2.8 billion annual level announced last year." Raymond added that the December 1, 1998 projection of a worldwide reduction in workforce of about 9,000 may also be revised in the new forecast. He expressed concern for those employees who will be leaving as a result of the merger, but noted that comprehensive severance packages and job placement assistance would be available to those employees who are not offered positions with the new company. Regarding the significant organizational work accomplished over the last year, Raymond said, "We believed almost a year ago that this merger was a great opportunity and, today, we are even more convinced of that. Our clear objective is to be the world's premier petroleum and petrochemical company. This merger will significantly enhance shareholder value and allow us to meet the needs of customers for quality products at competitive prices in the next century." Raymond noted that Exxon and Mobil have historically shared a number of core values that will continue to guide the management of ExxonMobil. "First and foremost, Exxon and Mobil shared a common resolve to maintain the highest standards for safety, health, and environmental care. The companies also shared a long- term commitment to creating shareholder value and a history of strong performance based on efficiency, capital productivity, and technological leadership," he said.

Transition Well Underway Raymond noted that a significant amount of merger planning and transition work has already been completed. "We started in the first quarter of 1999 with 150 people assigned to about 25 'core' transition teams. That number grew to more than 1,500 Exxon and Mobil people working on 140 teams just prior to closing. Throughout the process the teams have functioned extremely well -- with a high level of camaraderie and a common sense of purpose. This was an exceptional bonus -- exceeding everyone's expectation and a source of great confidence in how well the organization will blend together," he said. Raymond noted that ExxonMobil's corporate headquarters are officially up and running in Irving, TX. The Board of Directors has taken all the necessary actions to complete the merger and the company's new organizational structure. Financial reporting and cash handling processes are also in place, as are the company's emergency response and communication plans. Key policies and compensation and benefits programs are also in effect, primarily for U.S. employees. In most other locations, the existing policies and programs will continue to apply until new ones are adopted by the local affiliates, which in some cases are subject to works council and labor agreements. Each of the functional business line headquarters offices in Houston and Fairfax are in operation, and organizational plans have been developed for regional centers and other key office locations. These plans are being rapidly implemented, giving each functional company full readiness in managing their day-to-day business activities.

New Corporate Structure Raymond emphasized that in combining these two high-quality organizations, "Our primary objective was to create a better company -- not a bigger company. ExxonMobil, first and foremost, is a new kind of organization -- one that will be able to distinguish itself in terms of its unique abilities and performance. It is different from either of its components and from any other company in the energy industry today." Raymond said that ExxonMobil will employ a new organization structure built on a concept of eleven separate global businesses designed to allow the company to compete most effectively in the ever-changing and challenging worldwide energy industry. He stated that this new structure will result in a more focused approach as individual business lines are able to prioritize opportunities and allocate resources on a worldwide basis. Raymond stressed that the new global orientation will also lead to faster identification and implementation of best practices, which is so critical to achieving and maintaining competitive leadership. Five global upstream companies -- Exploration, Development, Production, Gas Marketing and Upstream Research -- will be headquartered in Houston along with the Chemical company and the Coal and Minerals company. Four downstream companies -- Fuels Marketing, Lubricants & Petroleum Specialties, Refining & Supply, and Research and Engineering -- will be based in Fairfax, Virginia. The company's senior management, in addition to Raymond and Lou Noto, Vice Chairman of ExxonMobil and former CEO and Chairman of Mobil Corporation, includes four senior vice presidents: Rene Dahan, Harry J. Longwell, Eugene A. Renna, and Robert E. Wilhelm. Dahan, Longwell, and Wilhelm were formerly senior vice presidents with Exxon Corporation. Renna was President and Chief Operating Officer of Mobil Corporation. The chemical and the coal and minerals companies will report to Dahan. The upstream companies will report to Longwell, and the downstream companies to Renna. Several corporate staff departments and service groups will report to Wilhelm. The ExxonMobil board of directors consists of 13 non-employee directors and six employee directors who are the members of the senior management team. Of the non-employee directors, nine were members of the Exxon board and four sat on the Mobil board.

Global Scope/Solid Operational Performance ExxonMobil has a presence in nearly 200 countries. The company has exploration or production operations in some 50 countries. The company sells fuels and chemicals in about 120 countries, and lubes in almost 200. Major manufacturing facilities for these products are strategically located in 24 countries. "A key benefit of the merger is that it allows us to compete more effectively with the recently combined multinational oil companies and the very large state-owned oil companies that are rapidly expanding outside their home areas," Raymond said. "In addition," he added, "ExxonMobil will benefit as proprietary technology and customer offerings that were developed separately are shared and further improved." In discussing the strategic fit of Exxon and Mobil, Raymond said the two companies align well with each other in almost every facet of the business. "In the exploration and production area, for example, Mobil's and Exxon's respective strengths in Europe, Asia-Pacific, West Africa, the Caspian region, Russia, South America, and North America line up well, with minimal overlap. Our respective deepwater assets and deepwater technology also complement each other well."

Outstanding Portfolio/Well-Positioned for Growth The company, with headquarters in Irving, Texas, will be a worldwide leader among energy companies, benefitting from unsurpassed functional and geographic diversity with strong global brands and leading positions in key businesses. Its operations range from exploration for and production of oil and gas to manufacturing and marketing of fuels, lubricants and chemicals, to mining of coal and minerals. In addition, the company is one of the world's premier independent power generators. ExxonMobil is well-positioned in both established and high- growth markets, as well as resource-rich upstream areas. It also has the financial capacity to pursue very large high-quality investment opportunities, positioning it extremely well for future growth. "While ExxonMobil has industry-leading financial, operational and technological assets, it is our employees who provide the most valuable and lasting competitive advantage," said Noto. "Never in the history of our two companies will this advantage be as crucial as during the next several years as we jointly reach for the exceptional benefits of this merger." Mobil also brings major liquefied natural gas assets and experience to the combined company, complementing Exxon's natural gas assets and gas-to-liquids technology. Noto said that in refining, marketing and chemicals, Exxon and Mobil each have significant global brand recognition, expertise and technology. "We will retain the Exxon, Esso, and Mobil brands, which are among the best recognized and trusted in the world. Those brands are complemented by ExxonMobil's strong retail operations which are located in key established as well as high- growth markets around the globe. In the lubricants area, Exxon is the world's leading producer of high-quality lube base stocks, which fits well with Mobil's leadership in finished lubes technology and marketing. The company's network of 43 refineries are well-positioned geographically to serve our fuels customers most efficiently. Many are world-scale in size and enjoy the benefits of integration with lubricants and petrochemicals manufacturing." In the chemical businesses, he added that ExxonMobil's manufacturing strength, business mix, and technological leadership position it well to become the world's premier petrochemical company. "Our current sales of about $15 billion/year make us one of the world's largest petrochemical companies -- but customer preference and profitability, not size, will make us the premier company," Noto said. The company's new trademark is ExxonMobil. Designed specifically to utilize the visual components of both the Exxon and Mobil brands, the logo retains Exxon's interlocking X's and Mobil's red "O." The two names are connected to emphasize the unity of the combined company.

ExxonMobil Board Of Directors

Michael J. Boskin, T.M. Friedman Professor of Economics and Senior Fellow, Hoover Institution, Stanford University

Rene Dahan, Senior Vice President, Exxon Mobil Corporation

William T. Esrey, Chairman and CEO, Sprint Corporation

Donald V. Fites, former Chairman and CEO, Caterpillar, Inc.

Jess Hay, Chairman, Texas Foundation for Higher Education and HCB Enterprises, Inc., a private investment firm

Charles A. Heimbold, Jr., Chairman and CEO, Bristol-Myers Squibb Company

James R. Houghton, Chairman Emeritus, Corning Incorporated

William R. Howell, Chairman Emeritus, J.C. Penney Company, Inc.

Helene L. Kaplan, Of Counsel to the law firm of Skadden, Arps, Slate, Meagher & Flom LLP

Reatha Clark King, President and Executive Director, General Mills Foundation and Vice President, General Mills, Inc.

Philip E. Lippincott, Chairman, Campbell Soup Company, retired Chairman and CEO, Scott Paper Company

Harry J. Longwell, Senior Vice President, Exxon Mobil Corporation

J. Richard Munro, former Co-Chairman and Co-CEO, Time-Warner Inc.

Marilyn Carlson Nelson, Chairman and CEO, Carlson Companies, Inc. and co-chair of Carlson Wagonlit Travel

Lucio A. Noto, Vice Chairman, Exxon Mobil Corporation

Lee R. Raymond, Chairman and CEO, Exxon Mobil Corporation

Eugene A. Renna, Senior Vice President, Exxon Mobil Corporation

Walter V. Shipley, Chairman, The Chase Manhattan Corporation and The Chase Manhattan Bank

Robert E. Wilhelm, Senior Vice President, Exxon Mobil Corporation

ExxonMobil Combined Worldwide 1998 Facts And Statistics Financial -- Net Income () 8.1 -- Total Revenues () 170 -- Average Capital Employed () 82 -- Capital and Exploration Expenditures () 15.5 -- Return on Average Capital Employed (%) 11% Upstream Operating -- Proved Reserves

(billions of oil-equivalent barrels) 21.3 -- Crude/Natural Gas Liquids Production

(million barrels per day) 2.5 -- Gas Production (billion cubic feet per day) 11.3 -- Crude/Natural Gas Liquids Proved Reserves

(billions of barrels) 11.5 -- Gas Proved Reserves (trillion cubic feet) 58.0 -- Countries (Exploration or Production) Approx. 50 Downstream Operating -- Petroleum Product Sales

(million barrels per day) 8.8 -- Service Stations (thousands) 40+ -- Convenience Stores (thousands) 15 -- Refinery Thruput (million barrels per day) 5.5 -- Refineries 44 -- Countries with Refineries 24 -- Fuels Marketing (number of countries) Approx. 120 Chemical Operating -- Prime Product Sales (million tons) 21 -- Revenues (incl. Intersegment) () 15 -- Manufacturing Sites 73 -- Countries with Manufacturing 24 -- Olefins Capacity (million tons per year) 11.2 -- Polyolefins Capacity (million tons per year) 6.4 Other Operating -- Employees (thousands) 123 -- Common Shares Outstanding (billion) 3.5 -- Business Presence (number of countries) Approx. 200 ots Original Text Service: Exxon Mobil Corporation Internet: http://www.newsaktuell.de Contact: Media Relations of Exxon Mobil Corporation (USA) 972-444-1107 Company News On-Call: http://www.prnewswire.com/comp/143842.html or fax, (USA) 800- 758-5804, ext. 143842 Web site: http://www.exxon.mobil.com

Keywords PROTEXT-Exxon Mobil Corporation

Region
USA, Canada, U.N.

Category
Chemical and pharmaceutical industries

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