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Mobil Supplemental Benefits Trust Ends Sales of Mobil Common Shares

12 August 1998

Mobil Supplemental Benefits Trust Ends Sales of Mobil Common Shares / Mobil Announces Board Authorization for Additional Share Repurchases

    FAIRFAX, Va.--Aug. 12, 1998--Mobil Corp. announced Wednesday that a trust created to fund Mobil supplemental retirement benefit plans will make no further sales of shares of Mobil's common stock.
    This decision reflects the significant deterioration in equity market conditions and in Mobil's stock price.
    Mobil had previously announced that the trust planned to sell up to 7.8 million shares of Mobil common stock in response to a required change in the method of accounting for deferred compensation plans and grantor trusts. Of this amount, approximately 0.7 million shares were sold.
    Due to the accounting change, the remaining shares held by the trust will now be classified as Treasury stock, with a resultant reduction in shares outstanding of over 7 million shares. Mobil cannot recognize investment income on shares classified as Treasury stock. However, the impact on earnings per fully diluted share will not be material.
    With the end of sales by the trust, Mobil will now resume share repurchases. In this regard, Mobil has authorization from its Board of Directors to repurchase shares of common stock valued at up to $500 million over the balance of 1998, recognizing Mobil's strong balance sheet and confidence in the future of Mobil's businesses.
    Mobil management considers stock repurchases at current prices to be particularly attractive. Mobil has already repurchased sufficient shares to offset dilution from this year's stock option program.