PREMCORS CRUDE OIL GROUP REALIZES BENEFITS FROM SOLARC RIGHTANGLE ENTERPRISE TRADE MANAGEMENT SOLUTION Independent refiner marketer will expand implementation

Announcement and analysis of Premcor Refining's benefits attributed to their implementation of SolArc RightAngle enterprise trade management solution

SolArc, Inc., a leading provider of enterprise trade management solutions for global commodity businesses, announced today that The Premcor Refining Group Inc., an indirect operating subsidiary of Premcor Inc., has completed the successful implementation of SolArc RightAngle to manage their commercial operations for crude oil and unfinished products.

Implementing SolArc RightAngle has allowed Premcor to integrate its commercial operations, including trading, scheduling and accounting into a single solution that provides an enterprise-wide view of our commercial business. Trade information is captured once instead of being entered three or four times during the course of a trading or supply transaction," said Andy Esterer, chief information officer of Premcor. With a single, integrated solution for trade management, we will be able to provide crude traders with more accurate and timely information on crude positions. In addition, we will be able to retire multiple separate legacy systems we previously used for trading, scheduling and accounting, resulting in reduced support costs. The consolidation of our IT systems into one trade management solution has also allowed us to materially reduce our accounting closing cycle."

Premcors crude oil division went live on SolArc RightAngle in October 2001, and the unfinished products division, which consists of refinery by-products, such as sulfur and coke, went live on May 1. Premcor expects to complete implementation of SolArc RightAngle for its other refined products in late 2002. This will complete one of the first installations of a cross-commodity, enterprise-wide trade management project using a packaged software solution designed for the refiner-marketer industry.

By implementing SolArc RightAngle, Premcor is taking the first step in an overall plan to streamline our operations and manage our business more efficiently," Esterer said. The first step in this process is laying a solid foundation of trade capture, accounting and position management. SolArcs deep understanding of the refined products industry resulted in a product that handles the unique complexities surrounding light product exchanges. Once the implementation is completed for the other refined products, we will access even more benefits by having the entire enterprise on a single platform that is fully integrated with our financial accounting and reporting system."

SolArc RightAngle is the most comprehensive product to integrate the entire transaction process, including every form of trade capture (physical and financial deals), storage and inventory management, pooled scheduling, logistics and transportation management, trade accounting, position management and real time and forward-looking profit and loss reporting capabilities in one complete end-to-end solution. Since it was launched in 1994, SolArc RightAngle has become the leading enterprise trade management solution for the natural gas liquids, crude oil and refined products industries.

When we created SolArc RightAngle, we envisioned a single-platform solution that would provide the deep functionality and robust performance of a custom-built system for every energy commodity class to serve the needs of todays integrated energy companies," said Roger Rowe, vice president of strategic development for SolArc. Premcors success with SolArc RightAngle in their crude division thus far has confirmed the value that our team and technology bring to the refiner-marketer industry. We see our relationship with Premcor as a solid foundation to support their planned business growth and to provide SolArc with additional insight to continuously improve our solution to better meet the future needs of the industry."

About SolArc, Inc.
SolArc, Inc., is a leading provider of flexible enterprise trade management solutions for the energy commodity trading industry that integrate trading, scheduling, accounting and risk management functions into an easy-to-use application. SolArcs products blend seamlessly with current business architecture -- including existing ERP and advanced risk management systems -- giving clients flexible solutions that grow with their business. By making energy companies more efficient, SolArcs products greatly reduce incremental transaction costs, making those companies more competitive. Headquartered in Tulsa, Oklahoma, visit SolArc at http://www.solarc.com.

About Premcor
Premcor Inc., through its principal operating subsidiaries, The Premcor Refining Group Inc. and the Port Arthur Coker Company L.P., is one of the largest independent petroleum refiners and marketers of unbranded transportation fuels, heating oil, petrochemical feedstocks, petroleum coke, and other petroleum products in the United States. The company has an aggregate 490,000 barrels per day (bpd) of crude distillation capacity at its three refineries located in Port Arthur, Texas (250,000 bpd), Lima, Ohio (170,000 bpd), and Hartford, Illinois (70,000 bpd). The company has announced it will discontinue refining operations at the Hartford, Illinois refinery in October 2002.

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