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<br />-- <br /> <br />- <br /> <br />Or1t: IDA-~'(L <br />q3-tDH~f <br />() Lvondell <br /> <br />Dan F. Smith <br />President and <br />Chief Executive Officer <br /> <br />July 28, 1997 <br /> <br />I <br />~C' <br /> <br /> <br />One Houston Center <br />1221 McKinney, Suite 1600 <br />P.O. Box 3646 <br />Houston, Texas 77253,3646 <br />Tel 7136527445 <br /> <br />The Honorable Norm <br />Mayor of LaPorte <br />P.O.Box 1115 <br />LaPorte, Texas 77572 <br /> <br /> <br />Dear Mr. Malone: <br /> <br />I am writing you today to share very positive news from Lyondell. Because of our operations in the <br />LaPorte Area, I wanted to personally make you aware of this and provide a copy of information that <br />we are releasing today to the news media. <br /> <br />Lyondell Petrochemical Company and Millennium Chemicals Inc. have reached an agreement to form <br />a new company comprised of the olefins and polymers businesses of the two organizations. The new <br />company will be based in Houston and will combine Lyondell facilities located in Channelview, <br />Pasadena (Bayport), Matagorda County and Victoria, with Millennium facilities in LaPorte, Port <br />Arthur, Chocolate Bayou and in the Midwest. <br /> <br />We will be creating a strong financial entity, with expected annual revenues of approximately $5 <br />billion. Our principal products will include ethylene, propylene, polyethylene, polypropylene, ethyl <br />alcohol and associated products. This new company is expected to be the largest producer of ethylene <br />and polyethylene in North America. <br /> <br />The partnership will be owned 57 percent by Lyondell and 43 percent by Millennium. I will serve as <br />Chief Executive Offi.cer for the new company, while continuing in my present capacity as CEO of <br />Lyondell,which will retain its corporate offices in Houston, as well. We will continue to own, <br />independent of our interest in the new partnership, our interest in Lyondell-Citgo Refining Company <br />Ltd. in Houston, a successful venture company between Lyondell and Citgo Petroleum Corp. <br /> <br />We are excited about the potential that this venture holds for Lyondell, this new entity, our employees <br />and the communities in which we operate. By blending these assets, employees and operating <br />capabilities, we are creating a major new worldclass chemical company whose performance, we <br />expect, will be differential in the industry. <br /> <br />Sincerely, <br /> <br />?-g-b. <br /> <br />Dan F. Smith <br /> <br />attachments <br /> <br />Lyondell Petrochemical Company <br />