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SUN EMPLOYEES RECEIVE STOCK OPTIONS

 PHILADELPHIA, Jan. 4 /PRNewswire/ -- Sun Company, Inc. (NYSE: SUN) said today it is granting stock options to rank-and-file employees in its corporate and core refining/marketing segments "to provide a heightened sense of ownership and partnership and to increase their opportunity to share in the success of the enterprise."
 Sun Chairman and Chief Executive Officer Robert H. Campbell said the one-time grant of stock options covers approximately 6,400 core employees, both hourly and salaried, including those in the company's Puerto Rico Sun Oil subsidiary. Executives who already participate in a stock option plan are not included in the new plan.
 Salaried participants will be granted options to purchase shares valued at roughly 15 percent of the midpoint of their salary range, from a minimum of 150 shares to a maximum of 800. Each hourly participant will receive an option to buy 200 shares -- a value equal to about 15 percent of the average base rate for all hourly jobs in Sun.
 "Expanding the use of stock options to employees at all levels is consistent with our philosophy of promoting employee interest in the company as shareholders, not just wage earners," Campbell said. "We are aware of only two or three other companies of Sun's size or larger that have such a plan."
 Under the Sun plan, participants can buy Sun stock at a fixed price of $28 a share -- the price at today's opening on the New York Stock Exchange -- beginning in two years. The option expires in 10 years.
 "These stock options are not a substitute for normal compensation," Campbell said, "and employees are not putting anything at risk when they receive them. If the stock price goes up, they benefit. If it goes down, they lose nothing. We anticipate that this will focus employees' attention even more on the bottom line than it may have been in the past."
 Sun's stock price has declined in recent years, but a renewed focus on its core domestic refining and marketing business, announced Oct. 30, 1992, has improved the company's outlook. Today's opening stock price is up 24.4 percent from the low of $22.50 recorded on Oct. 5, 1992.
 Campbell said the company expects to issue options on approximately 1.75 million shares of the two million authorized by Sun's board of directors. Noting that there are currently 106 million Sun shares outstanding, Campbell said the dilution impact on earnings per share would be minimal.
 Following a recent restructuring, Sun Company, Inc. is now focusing on domestic refining and branded marketing, as well as on the chemicals, lubricants, and logistics businesses. The company's real estate holdings and coal assets are for sale, and it is withdrawing from oil and gas exploration outside of Canada.
 /delval/
 -0- 1/4/93
 /CONTACT: Bud Davis (media), 215-977-3485, or Katie Turner (investors), 215-977-6106 of Sun/
 (SUN)


CO: Sun Company, Inc. ST: Pennsylvania IN: OIL SU:

MK -- PH005 -- 1217 01/04/93 10:00 EST
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Publication:PR Newswire
Date:Jan 4, 1993
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