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1,145 UNOCAL EMPLOYEES ACCEPT RETIREMENT, SEVERANCE PACKAGES; RESTRUCTURING PROGRAM ON SCHEDULE

 1,145 UNOCAL EMPLOYEES ACCEPT RETIREMENT, SEVERANCE PACKAGES;
 RESTRUCTURING PROGRAM ON SCHEDULE
 LOS ANGELES, Sept. 21 /PRNewswire/ -- Unocal Corp. (NYSE: UCL) today said that 1,145 employees accepted the company's voluntary separation and voluntary early-retirement packages as part of the company-wide restructuring program announced in April.
 The results of the voluntary programs and the reorganization of operations will enable the company to realize its goal of reducing Unocal's total workforce by 1,100 employees.
 At the same time, Unocal has implemented a series of operating improvements, which combined with the force reduction, will increase after-tax cash flow by $200 million per year beginning in 1993.
 Richard J. Stegemeier, Unocal chairman and chief executive officer, said, "These employee reductions are not an isolated action, but rather part of a larger plan to increase Unocal's cash flow and reduce debt."
 Stegemeier pointed out that the proceeds from a $513 million private placement of convertible preferred stock in July are being used initially to accelerate the debt reduction program.
 In 1993, the company will begin a three-year, $500 million program to expand development of crude oil and natural gas reserves in the United States
 "We have an inventory of relatively low-risk projects here in the United States that we feel can be developed profitably, even at prices below current levels," Stegemeier said. "This development program will be funded with cash flow that otherwise would have been used for debt reduction."
 So far in 1992, asset sales have generated after-tax proceeds of $325 million. The company has sold its polymers and chemicals distribution businesses, its product terminals network in the Southeast United States, and other non-strategic assets.
 The company expects to generate another $700 million after-tax over the next 18 months from the sale of additional assets. At this time, the company is considering the sale of its geothermal energy assets in the California's Imperial Valley and is negotiating the sale of its PureGro Co. subsidiary and its nationwide Auto/Truck-Stop system.
 Unocal expects to take a one-time after-tax charge of approximately $25 million in the third quarter for the cost of the early retirement and severance packages. A related $5 million after- tax charge was taken earlier this year.
 -0- 9/21/92
 /CONTACT: Barry Lane of Unocal, 213-977-7601/
 (UCL) CO: Unocal Corp. ST: California IN: OIL SU: PER


EH -- LA012 -- 1710 09/21/92 13:10 EDT
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Publication:PR Newswire
Date:Sep 21, 1992
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