Citgo Approves Honeywell as Supplier for Major Automation Modernization Program.

PHOENIX--(BUSINESS WIRE)--Oct. 8, 1998--Honeywell and CITGO Petroleum Corporation have signed an agreement making Honeywell a pre-selected supplier of a wide range of automation products and services in support of CITGO's long-range strategic automation plan.

The agreement anticipates that CITGO will purchase more than $50 million in Honeywell automation products and services during the next four years for a major modernization program at its 11 U.S. locations. Covered in the agreement are Honeywell's TotalPlant(R) Solution (TPS) open control system, Hi-Spec Solutions advanced control and optimization software, measurement and control products, and engineering and installation services.

The four largest facilities to be modernized include CITGO Refining and Chemical Co. L.P. at Corpus Christi, TX; CITGO Petroleum Corp. at Lake Charles, LA; PDVMR L.L.C. Midwest Refining at Lemont, IL; and the jointly owned Lyondell CITGO Refining Co. at Houston, TX. These and 7 other plants give CITGO an effective refining capacity of almost one million barrels per day, the third largest in the nation.

Roberto Mandini, CITGO Executive Vice President, said, "Our automation vision is a key part of our plan to become best-in-class among leading refining companies - to improve our overall efficiency, profitability, and competitiveness. Honeywell will play a key role in the implementation of this automation vision. We chose to work with Honeywell because of their technology leadership and because of proven execution capability."

Jerry Thompson, CITGO Vice President of Development and Technological Excellence, said, "The new agreement extends and expands the relationship we have had with Honeywell for 15 years. Honeywell has always delivered for us. Also, Honeywell is known for pushing the technology frontier, and CITGO wants to participate in early implementation of leading-edge technology."

"Honeywell Hi-Spec Solutions' Profit Suite advanced control and optimization software is a good example of this leading technology," Thompson said. "We expect to improve product quality and increase profitability of refining processes through implementation of these applications."

Markos Tambakeras, president of Honeywell Industrial Control, said, "We're very pleased to be able to build upon our long-standing relationship with CITGO. We feel this new agreement demonstrates once again our commitment to work closely with our customers to support their business needs, and to deliver the best total automation value available."

CITGO, based in Tulsa Okla., is a refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals, refined waxes, asphalt and other industrial products. The company is owned by PDV America, Inc., an indirect wholly owned subsidiary of Petroleos de Venezuela, S.A., the national oil company of the Republic of Venezuela.

For more information, see CITGO's web site at www.citgo.com.

Honeywell Industrial Automation and Control is the leading worldwide supplier of industrial automation solutions. Honeywell is the world's leading provider of control technologies for buildings, homes, industry, space, and aviation. The company employs 56,500 people in 95 countries, and had 1997 sales of $8 billion.

For additional information, write to: Honeywell Inquiries, 2800 Wells Branch Parkway, Austin, Texas 78728. Inquiries also may be made to Honeywell by phone, 1-800-288-7491, or by fax, 512-244-9222 or via Honeywell IAC's Worldwide Web Site at: http://www.iac.honeywell.com.