Ultramar Diamond Shamrock: U.S. Gasoline Pricing Statement

    SAN ANTONIO--Sept. 12, 2001--Ultramar Diamond Shamrock Chairman and CEO Jean Gaulin announced that the corporation's 1,500 company-owned Diamond Shamrock, Stop-N-Go, Beacon, Ultramar and Total gasoline retail locations did not increase gasoline prices in response to the terrorist attacks in New York and Washington, D.C.
    "We are deeply saddened by yesterday's senseless acts of terrorism," said Gaulin. "We are sensitive to this national tragedy, and at our 1,500 company-owned retail stores, we did not increase prices in response to this incident," said Steve Motz, senior vice president, Marketing, Ultramar Diamond Shamrock.
    Because of customer response to the tragedy and the sudden unexpected demand, some UDS stores ran out of fuel.
    "We want to let our customers know that there is no current threat to the gasoline supply, and we urge customers to refill their vehicles' tanks only as frequently as they normally would," Motz said.
    UDS responded to the increased demand by contacting its fuel carriers who quickly reacted by adding drivers and trucks to replenish fuel inventories as soon as possible.
    Motz added that the company has received several phone calls from consumers thanking Ultramar Diamond Shamrock for holding its prices steady. "It's gratifying to hear from customers about this, but it's just simply the right thing to do."
    UDS does supply fuel to independent business owners whose stores are branded Diamond Shamrock, Beacon, Ultramar or Total. Those independents make their own pricing decisions.
    UDS has not increased wholesale prices to these contracted customers in the wake of this tragedy. "We fully expect those independent business owners will act responsibly in the face of this national tragedy," Motz said.
    Motz noted that industrywide retail prices for gasoline and diesel had increased in many areas in the past several days prior to the attack, but these increases were normal fluctuations based on supply and demand.
    Ultramar Diamond Shamrock Corp. , with about $17 billion in annual revenues and more than 20,000 employees, is one of the largest independent refining and marketing companies in North America. The company operates seven refineries in the United States and Canada with a total throughput capacity of 850,000 barrels per day and has over 5,000 branded retail gasoline/convenience merchandise stores, the majority of which are branded Diamond Shamrock, Ultramar, Beacon or Total. The corporation also has growing petrochemicals and home-heating oil businesses. Please visit our Web site at http://www.udscorp.com for more information including annual reports, press releases, SEC forms 10-K and 10-Q, and audio archives of recent conference calls.