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Pennzoil-Quaker Reaches Agreement to Sell Its Share Of Penreco

3 January 2001

Pennzoil-Quaker State Company Reaches Definitive Agreement to Sell Its Share Of Penreco

    HOUSTON, Jan. 2 Pennzoil-Quaker State Company
announced today that it has reached a definitive agreement to sell its
50 percent share of Penreco to M.E. Zukerman Energy Investors Incorporated.
Penreco, a partnership with Conoco Inc., produces and markets white oils,
petrolatums, solvents, gelled products and other specialty products.  Penreco
will maintain its customer service focus, and no change to employment is
anticipated.  The sale is expected to close by January 31, 2001.
    "While Penreco is an outstanding organization with high-quality products,
it simply did not fit into our vision," said James J. Postl, president and
chief executive officer of Pennzoil-Quaker State Company.  "This sale allows
us to strengthen our focus on automotive consumer product businesses."