Conoco Advances Natural Gas-to-Liquids Technology.

Business/Energy Editors

HOUSTON--(BUSINESS WIRE)--Feb. 7, 2000

Conoco Inc. (NYSE:COCA) (NYSE:COCB) says that continuing advances in its efforts to develop Gas-to-Liquids (GTL) technology have led the company to sign an agreement with Howe-Baker Engineers Inc. for design of a pilot plant using Conoco's proprietary process.

&uot;We believe that the progress made in the laboratory can be duplicated in the field to economically convert natural gas reserves in remote regions into liquid products that are easily transported to the marketplace,&uot; said Jim Rockwell, Conoco's manager of Gas-to-Liquids. &uot;The next step is to further demonstrate this technology in a larger pilot plant and we are confident that Howe-Baker has the experience to help us design and construct the scale-up facilities. This is a logical next step in our relationship with Howe-Baker; one that we believe will continue to grow and deepen in the coming years.&uot;

Rockwell said that a successful test of the technology would solve what has been an elusive goal for the industry and would represent major progress in the company's strategy to grow its worldwide natural gas business.

&uot;There are trillions of cubic feet of natural gas reserves in the world that are stranded because they can't be moved to market,&uot; he said. &uot;Converting these reserves into diesel, naphtha and other easily transportable products makes them marketable and enhances value.&uot;

Howe-Baker President Ronald D. Brazzel said, &uot;Our expertise in the engineering and construction of both synthesis gas and gas processing plants will provide a significant cost advantage, since those plants account for much of the overall plant cost.&uot; Brazzel added, &uot;Howe-Baker considered several different companies with which to associate, and Conoco brings a lot to the table with its GTL expertise, project development skills, and ongoing financial commitment. We are impressed with Conoco's commitment to making GTL commercially viable and by the fact that they are not only a technology developer but as a large integrated energy company they will be users of the technologies we are helping to develop.&uot;

Howe-Baker Engineers is an international, multi-disciplined company with engineering, fabrication and construction capabilities located at offices in Beaumont, Houston and Tyler, Texas.

Conoco is a major, integrated energy company based in Houston and active in more than 40 countries.

This release contains forward-looking statements about Conoco's operations and business plans. These statements are not guarantees of future performance, involve certain risks, uncertainties, and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Actual outcomes and results may differ materially from what is expressed herein. Among the factors that could cause such differences are technical difficulties; changes in crude oil and natural gas prices; changes in anticipated construction and manufacturing costs; or political events. Such matters are detailed in Conoco's publicly available filings with the Securities and Exchange Commission.