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SUN TO EXPLORE 'STRATEGIC ALTERNATIVES' FOR ITS COAL AND COKE ASSETS

SUN TO EXPLORE 'STRATEGIC ALTERNATIVES' FOR ITS COAL AND COKE ASSETS
 PHILADELPHIA, Sept. 8 /PRNewswire/ -- Sun Company, Inc. (NYSE: SUN) announced today that it will explore various "strategic alternatives" for its coal and cokemaking assets, including sale of all or some of the assets, joint venture operation, and other options.
 "The decision to explore options regarding Sun's coal and coke operations is part of a strategic refocusing of our various businesses," said Robert H. Campbell, Sun's chairman and chief executive officer. "Our goal is to concentrate our investment capital in our core businesses.
 "We believe the fundamentals of the low-sulfur coal industry will improve due to Clean Air Act amendments that reduce allowable sulfur dioxide emissions from coal-burning utilities," said Campbell. "However, we also believe that the full strategic value of our coal and coke assets may be best recognized by a company devoted to the coal and coke business for the long term."
 Sun's coal and coke operations are managed by Sun Coal Company, a wholly owned Sun subsidiary based in Knoxville, Tenn. Considered a premier low-sulfur steam and metallurgical coal producer, Sun Coal has Eastern mines in the Central Appalachian area of Kentucky and Southwestern Virginia, and Western mines in Utah and the Powder River Basin of Wyoming.
 Sun Coal also utilizes its patented Jewell/Thompson non-recovery cokemaking technology to produce high quality coke in a manner that is environmentally superior to the by-product technology currently used by most coke producers.
 At June 30, 1992, Sun Coal had 720 million tons of proven and provable high quality coal reserves, of which 16 percent were bituminous metallurgical coal, 30 percent were bituminous steam coal, and 54 percent were subbituminous steam coal. During the first six months of 1992, Sun Coal produced approximately 12 million tons of coal and 320,000 tons of coke.
 During the first six months of 1992, Sun Coal had earnings of $13 million on revenues of $184 million, compared to earnings of $10 million on revenues of $188 million during the same period in 1991.
 Sun has retained Lehman Brothers as an adviser on this matter.
 Sun Company, headquartered in Philadelphia, is an energy company with interests in U.S. and Canadian petroleum refining and marketing, U.S. coal and coke production, synthetic crude oil production in Canada, and crude oil and natural gas exploration and production outside the United States. Branded marketing is carried out under the Sunoco brand in the United States and Canada and also under the Atlantic brand in the United States. Sun Company trades on the New York Stock Exchange and other stock exchanges with the symbol "SUN."
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 -0- 9/8/92
 /CONTACT: Bud Davis (media), 215-977-3485, or Tim Hughes (investors), 215-977-6544, both of Sun Company/
 (SUN) CO: Sun Company, Incorporated ST: Pennsylvania IN: OIL SU:


MP -- PH006 -- 6812 09/08/92 08:21 EDT
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Publication:PR Newswire
Date:Sep 8, 1992
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