BP Amoco and ExxonMobil to Dissolve European Joint Venture

Irving, Texas and London (PROTEXT) - BP Amoco p.l.c. and ExxonMobil Corporation (NYSE: XOM) announced today that they havemutually agreed on the principles under which they will dissolvethe Mobil-BP Amoco European fuels and lubricants joint venture inresponse to the European Commission's authorization of the Exxonand Mobil merger. Under the agreement, which is subject to a number of approvalsand appropriate employee consultation, BP Amoco will purchaseMobil's 30 percent interest in the fuels business for about $1.5billion, subject to adjustments. The agreement also includes thetransfer of Mobil's interests in certain pipelines servingGatwick airport. In addition, the two companies will divide theassets of the lubricants business broadly in line with theirequity stakes (51 percent Mobil, 49 percent BP Amoco). "It took a significant amount of dedication and effort on theparts of BP and Mobil employees to develop and then make thisjoint venture a success. However, in this highly competitiveindustry BP Amoco and ExxonMobil have each found newopportunities for the next century. This required us to bring theventure to a mutually beneficial close," said BP Amoco ChiefExecutive Sir John Browne and ExxonMobil Chairman and ChiefExecutive Officer Lee Raymond. "We will end our relationship in a way that brings fair valueto both companies for the assets involved and allows both of usto continue to provide our customers with high-quality productsand service." The fuels part of the venture, operated by BP Amoco, currentlyoperates around 8,500 service stations across Europe,representing about 12 percent of the market, while the lubricantspart of the venture, operated by ExxonMobil, has a market shareof just over 18 percent in Europe. Under the outline agreement announced today, BP Amoco willreceive the service stations, fuels refineries at Grangemouth andCoryton, UK; Lavera, France; Nerefco, The Netherlands; andCastellon, Spain; as well as the shareholdings in the TurkishMersin, French Reichstett and German Bayernoil refineries. Mobilwill receive the fuels refinery at Gravenchon. On the lubricants side, ExxonMobil will receive the Dunkirkrefinery in France and the lubricants leg at Gravenchon. BP Amocowill retain the base oil refinery in Neuhof, Germany, and thelubricants leg of Coryton, together with the blending plants atNeuhof, Ghent in Belgium, Gemlik in Turkey, Batsons in the UK and45 percent share of the Turkish Serviburnu plant. The remaining10 lubricant blending plants will be part of the ExxonMobilportfolio. The companies have also agreed in principle to the followinggeneral provisions for the marketing of lubricants in Europe. BPAmoco will receive: -- All the lubricant marketing businesses in Portugal, Spain,Greece, Gibraltar and Malta, including the Mobil branded businessand the Mobil brand for an interim period, -- All the direct commercial vehicle lubricants businessthroughout Europe, including the Mobil branded business and theMobil brand for an interim period, -- All the BP and Duckhams branded passenger vehiclelubricant business throughout Europe, and -- All distributor relationships associated with the BP andDuckhams brands. ExxonMobil will receive: (outside of Portugal, Spain, Greece,Gibraltar and Malta) -- All the direct industrial lubricants businesses, includingthe BP and Duckhams branded businesses, -- All the Mobil-branded passenger vehicle lubricantsbusiness, and -- All distributor relationships associated with the Mobilbrand.

ExxonMobil and BP Amoco said that they do not expect thetermination of the joint venture to have a significant directimpact on staffing levels. Assuming that all the necessary approvals are received, theeffective date for the implementation of the final agreement,will be January 1, 2000. Notes to Editors: Under the European joint venture, announced in February 1996,BP and Mobil combined their downstream assets establishingoperating partnerships for fuels and for lubricants in eachcountry where the companies were active. The joint venture excluded the operations of both companieswhich had activities in Europe but operated globally, such asinternational trading, aviation, marine, shipping and gasmarketing. Exploration and production and chemicals were alsoexcluded. ots Original Text Service: Exxon Mobil CorporationInternet: http://www.newsaktuell.de Contact: Media Relations ofExxon Mobil Corporation, (USA) 703-846-2378; or Media Relationsof BP Amoco p.l.c., 011-44-171-496-4358 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

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