Shell Statement Regarding the Texaco Brand

HOUSTON, Sept. 16, 2002 -- The long-term future of the Texaco brand has been in question since ChevronTexaco acquired it. Today's announcement by ChevronTexaco does not come as a surprise. Shell anticipated this possibility when it acquired the Texaco-branded network earlier this year. Shell has been working aggressively to convert the majority of this network to the Shell brand by June 2004, when Shell's exclusive rights to the Texaco brand expire. Shell is investing $500 million in this conversion campaign. In fact, of the Texaco-branded fuel volumes sold by marketers that Shell identified as important to our success, over 95 percent have already committed to Shell.

Shell's investment in the conversion campaign and other decisive steps -- including a strong credit card program, a new fuel roll out with $25 million in advertising and support, and a new Retail Visual Identify for existing Shell stations -- will reinvigorate the Shell brand in the U.S.

-- Shell and Motiva Enterprises have exclusive rights to the Texaco brand through June 2004. That means that no one can open up a new Texaco station any time during the next 21 months without Shell or Motiva approval. -- From July 2004, through June 2006, Shell and Motiva have a non- exclusive license to use the Texaco brand. -- Shell and Motiva own the Texaco credit card portfolio. These accounts will be converted to Shell cardholders as Texaco stations are converted to Shell on a market-by-market basis. -- Shell and Motiva have launched Texaco-to-Shell station conversions in the following locations: Anchorage, Alaska; Colorado Springs, Colorado; Denver, Colorado; Los Angeles, California; Portland, Oregon; Nashville, Tennessee; Oklahoma City, Oklahoma; and Seattle, Washington. -- Shell's pending acquisition of the Pennzoil-Quaker State Company will significantly enhance Shell's lubricants portfolio. We believe the combination of a strong petroleum brand and an enhanced lubricants offering will be very effective in the marketplace. -- For nearly five years, the Retail staff of Shell and Motiva have been the day-to-day stewards of both the Texaco and Shell brands. The intellectual capital and customer relationships they drew upon to build these brands are prized human assets still residing within Shell and Motiva and focused on enhancing the Shell brand.