Tesoro Corporation Makes Changes to Executive Leadership.

SAN ANTONIO -- Tesoro Corporation (NYSE:TSO) announced today that Tom Reardon, Executive Vice President of Corporate Resources and Jim Reed, Executive Vice President, General Counsel and Secretary plan to retire effective February 28, 2005.

"Everyone at Tesoro appreciates Tom and Jim's hard work and dedication. They have been an integral part of our growth and success," said Bruce Smith, Tesoro's Chairman, President and CEO. "While we are saddened to see them leave their executive posts, we are pleased to have a line-up of extremely talented leaders in place and ready to take charge."

Replacing Tom Reardon is Joe Monroe as Senior Vice President of Organizational Effectiveness. Joe joined Tesoro in May 2002 as Senior Vice President of Supply and Distribution. Most recently, he held the position of Senior Vice President, Strategic Planning & Business Development. Prior to joining Tesoro, Joe spent 20 years with Unocal Corporation. In his new role, Joe will oversee Tesoro's Organizational Strategy, Human Resources, Corporate Communications, Security, Corporate Services, and Project Management functions.

Monroe earned a bachelor's degree in chemical engineering from North Carolina State University and a master's degree in chemical engineering from the University of California at Berkeley. He also holds a master's degree in business administration from the University of Southern California.

Chuck Parrish has been named Vice President, Assistant General Counsel and Secretary and upon Jim Reed's retirement will become Vice President, General Counsel and Secretary and is assuming the leadership role for Tesoro's Legal Department, Contract Administration as well as the Business Conduct office.

Parrish joined Tesoro in 1994 and has since served in numerous roles in the legal department. He works closely with the company's finance and financial reporting teams on all matters related to the company's capital structure and securities act reporting. In addition, Parrish provides counsel to the company's management and Board of Directors on Corporate governance issues. Before joining Tesoro, Parrish worked in private practice with law firms in Houston and San Antonio.

Parrish received his B.A. degree, with honors, in history from the University of Virginia and his juris doctor from the University of Houston School of Law. He is a member of the State Bar of Texas and the American Bar Association.

Everett Lewis is assuming the position of Senior Vice President of Corporate Strategic Planning. Lewis has over 30 years' refining and marketing experience including 10 years with Chevron USA. His background includes various assignments in the industry, including refinery management, supply and trading, and business development. Currently, Lewis serves as Senior Vice President of Planning and Optimization. Prior to that, he served as Senior Vice President, Planning and Risk Management from 2001 to 2003. He also served as Senior Vice President of Strategic Projects from 1999 to 2001.

Lewis graduated with a bachelor's degree in chemical engineering from Iowa State University and received his master's degree in business administration from the University of Hawaii. In his new role Lewis will oversee Corporate Strategy, Business Development, Mergers and Acquisitions, and Industry Analysis and Economic Outlook.

"As a company, Tesoro is focused on identifying the talent of our people and providing new experiences that build upon their leadership and skills strengths. Today, in announcing the appointment of Joe, Chuck and Everett, we are taking another step toward ensuring we achieve our business objectives and broader strategic goals," said Smith. "Each of these executives brings significant experience to their new role. I am certain they will do an outstanding job of leading Tesoro to unprecedented success," he said.

Tesoro Corporation, a Fortune 500 Company, is an independent refiner and marketer of petroleum products. Tesoro operates six refineries in the western United States with a combined capacity of nearly 560,000 barrels per day. Tesoro's retail-marketing system includes over 500 branded retail stations, of which more than 200 are company operated under the Tesoro(R) and Mirastar(R) brands.