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NOVA ANNOUNCES REORGANIZATION OF MANAGEMENT

 NOVA ANNOUNCES REORGANIZATION OF MANAGEMENT
 CALGARY, Dec. 2 /PRNewswire/ -- As part of continuing actions to


strengthen its businesses, NOVA Corporation of Alberta (NYSE: NVA) announced today a major reorganization of senior management of the Corporation and its two main businesses. This will create more efficient and effective structures which best suit the distinctly different natures of its natural gas transmission business and its chemicals business.
 "Our primary objectives are to make NOVA more effective, more efficient, and by so doing, to reduce costs. The simplified organization will allow us to make faster, more responsive decisions," said J. E. Newall, NOVA president and chief executive officer. He said "the streamlining clearly responds to the expressed interests of the Alberta gas producers in that the Alberta Gas Transmission Division will be a much more self-contained unit with the potential to achieve even better control over costs."
 This reorganization will lead to a reduction in executive positions. Additional streamlining will occur over the next several months as each business re-examines its needs.
 A major element of these changes is that NOVA's corporate structure will be decentralized. Corporate positions will be allocated to the businesses they serve and reorganized to reduce costs. The businesses will have to justify these costs based on their contribution to their results.
 Only a small corporate group, including such functions as treasury, legal and shareholder relations, will remain at the corporate level.
 B. W. Simpson will continue his current responsibilities as president of the Alberta Gas Transmission Division; it was announced recently that J. E. Feick has been appointed president of Novacor Chemicals Ltd., the operating entity that encompasses NOVA's chemicals operations.
 This major change in organization structure is the latest initiative in NOVA's action plan to improve its performance. Other recent initiatives include:
 -- A reduction in dividends paid to common shareholders to conserve cash for reinvestment in the pipeline business;
 -- An agreement for the sale of NOVA's 43 per cent interest in Husky Oil Ltd. to reduce cash outflows and funding requirements for the Husky investment;
 -- A reduction of capital spending to minimum levels in all business areas except the Alberta Gas Transmission Division;
 -- Consolidation of the petrochemicals and plastics divisions into one unified business to reduce costs and improve effectiveness; and
 -- A comprehensive strategic review of each of the Corporation's chemicals businesses.
 "Our goal is to create a more competitive chemicals business and the most cost-effective natural gas transmission business. These steps will help us achieve those objectives," Newall said.
 Newall said that although the new organization structure is consistent with NOVA separating into two separate companies, NOVA has concluded that it is not feasible to implement the separation at this time. The major reason for this conclusion is that the depressed state of the chemicals industry makes the establishment of the chemicals company as an independent entity impractical. The feasibility of separation may be reconsidered when the chemicals industry has recovered. The new streamlined organization will be more efficient and cost effective.
 NOVA is a widely held company operating internationally from headquarters in Calgary, Alberta, Canada. NOVA builds its future on pipelines, and the manufacturing and marketing of chemicals and plastics processed primarily from Alberta natural resources.
 -0- 12/2/91
 /CONTACT: J. E. Newall, 403-290-7777, or B. W. Simpson, 403-290-7640, or J. E. Feick, 403-290-8902, all of NOVA Corporation of Alberta/
 (NVA) CO: NOVA Corporation of Alberta ST: Alberta IN: OIL SU: PER


TS -- NY013 -- 8224 12/02/91 09:20 EST
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Publication:PR Newswire
Date:Dec 2, 1991
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