Circle K Leads Current Trend in Prepaid Communications; Fill Up Your Gas Tank, Coffee Cup and Wireless Phone All in One Stop.

Business Editors

PHOENIX--(BUSINESS WIRE)--Dec. 19, 2001

Circle K now offers convenience store customers a complete array of communication products just in time for the holiday gift-giving season.

In response to customer needs, Circle K now offers three pay-in-advance communications choices: prepaid long distance, prepaid wireless, and prepaid Internet.

The United States is seeing an explosion in prepaid, or pay-in-advance, communications. According to a Yankee Group 2000 study, the number of prepaid communications minutes purchased will explode from 3 billion per year in 1997 to over 40 billion in 2004.

The main reasons for this growth are: with prepaid communications, there is no credit check, contract, deposit, or age restriction; prepaid customers only pay for the time they use; and users know exactly what they're going to spend -- there's no surprising bill at the end of the month.

"Recently, we have seen an enormous jump in wireless phone usage by customers young and old, and the prepaid option is really taking hold. In fact, within the next three years, one out of every two wireless phone customers are expected to be prepaid," said Keith Brand, senior category manager, telecommunications and electronic services, Phillips 66 Co., the owner of Circle K.

Circle K has led the way with a new wave of prepaid communication choices being made available across the country. For example, prepaid long distance cards give customers the added sense of security and the ability to manage their budget to the dime since they're paying in advance rather than receiving a monthly bill. This is true for the prepaid wireless and prepaid Internet products as well.

"Circle K customers have really responded to our prepaid communications products, seeing Circle K as the headquarters for their pay-in-advance telecommunication needs," added Brand. "And regardless of where our customers originally bought their Prepaid Wireless phones, they're now coming to us for their refill time -- simply because we're more convenient."

Circle K features prepaid communication product lines available from reputable brand names including MCI, Cricket, AT&T Wireless, Verizon, Tracfone, Cingular, Alltel and Slingshot. And this December, just in time for the holidays, Circle K is offering a free $10 MCI Prepaid Long Distance card with any $20 Card purchase.

Customers can use the free phone card as a gift or keep it for themselves. Circle K is also offering $20 off on prepaid wireless phones from Cingular and AT&T.

Circle K is a registered trademark of Phillips 66 Co., a division of Phillips Petroleum Co. (NYSE:P) or its subsidiaries. Phillips is an integrated petroleum company with interests around the world.

Founded in Bartlesville, Okla., in 1917, the company had annual revenues of $21.2 billion for 2000. Phillips markets gasoline and convenience store products in the United States through a network of over 12,000 retail sites under the Phillips 66, Union 76, Circle K, Exxon, Mobil and Coastal brands.