National Association for Environmental Management Honors Koch Industries Facility.

WICHITA, Kan.--(BUSINESS WIRE)--Oct. 12, 1999--

Koch Recognized For Innovative Programs That Improve Environment,

Increase Productivity

Koch Industries' Beaverhead Ranch is the 1999 NAEM Environmental Excellence Award winner in the Corporate Facility category.

Winners were recognized at a ceremony today during NAEM's 7th annual Environmental Management Forum in Orlando, Florida.

Koch was honored along with two other national leaders in environmental stewardship: IBM received the Corporate Environmental Excellence award, and Mr. John H. Bridges III, environmental compliance coordinator of the U.S. Postal Service, was named Environmental Manager of the Year.

"NAEM is extremely proud of the 1999 Environmental Excellence Award recipients. As Corporate Facility winner, Koch's Beaverhead Ranch has shown that making environmental concerns an integral part of their operations can yield both a healthier environment and a more successful business," said Carol Singer Neuvelt, executive director of the National Association for Environmental Management.

Beaverhead Ranch, operated by the Matador Cattle Company, a Koch Industries affiliate, is a 250,000-acre ranch in the southwest corner of Montana, on the eastern slope of the Rockies. The ranch supports 6,400 to 6,900 cow/calf pairs and about 800 stocker cattle. Beaverhead's goal is to be a sustainable ranching operation and a model of environmental excellence. Toward this goal, Beaverhead manages the cattle's breeding and grazing patterns so that the cattle participate in the natural cycle of harvesting and reseeding.

This approach to environmental management has allowed the ranch to increase its carrying capacity 8% since 1991; feed costs have fallen 25%, calf weaning weights have increased 22%, and the calving interval has decreased. A handful of elk have grown to a winter population of more than 1,500, and fish, deer, and moose populations have also increased. "We operate in a renewable resource harvesting business. If we don't take care of the resources, we'll be out of business," said ranch manager Ray Marxer.

Beaverhead Ranch reaches beyond its gates to work with regulatory agencies, environmental groups, and environmental researchers, as well as to welcome visitors from all over the world. "If you have a proactive approach to life, business, and toward environmental issues, you are more likely to be able to direct change rather than react to it," explained Marxer.

"By proving that ranch production, the environment, and wildlife can thrive together, Beaverhead Ranch has demonstrated that business, regulators, and environmental groups can work well together. Ray Marxer and his staff have done an outstanding job of finding innovative solutions and putting into practice Koch's goal of being operator of choice in the areas where we do business. Koch is very pleased to see their hard work recognized by the prestigious National Association for Environmental Management," said Larry Angell, vice president, operations, Koch Beef Company.

The NAEM awards are judged by an independent panel of national environmental experts. The ranch's innovative environmental stewardship practices have also earned awards from the National Cattleman's Beef Association, the International Association of Fish and Wildlife Agencies, and U.S. EPA Region 8.

Koch is the eighth-largest cow/calf operator in the United States, with three ranches totaling 450,000 acres, 15,000 head of cattle, and 41 cowboys. Koch has been in the cattle ranching business since 1951, when company co-founder Fred C. Koch bought the Matador Ranch in West Texas.

Koch Industries, Inc. through its subsidiaries, employs 16,000 people worldwide and is involved in virtually all phases of the oil and gas industry, as well as in chemicals, plastics, energy services, chemical and environmental technology products, asphalt products, metals and mineral services, agriculture, financial services, and ventures. For more information on Koch, refer to www.kochind.com or www.kochenvironment.com on the Internet.