HOUSTON, Dec. 21 /PRNewswire/ -- Lyondell Chemical Company (NYSE: LYO) today announced a 2002 capital expenditure budget for Lyondell and its ventures, Equistar Chemicals, LP, and LYONDELL-CITGO Refining LP (LCR), that is approximately 25 percent lower than 2001 estimated capital spending.

Lyondell's 2002 capital budget is $230 million, including the company's proportionate share of capital spending for Equistar and LCR. Components of the 2002 capital budget and the 2001 estimated capital expenditures are shown below.

    Millions           Intermediate  Equistar    LYONDELL-  Lyondell and
    of dollars         Chemicals &  Chemicals(A)  CITGO     Proportionate
                       Derivatives  Lyondell    Refining(A)  Share of
                        Lyondell     has 41%    Lyondell has   Equity
                        owns 100%   ownership     58.75%     Investments
                                                 ownership
    2002 Capital
    Budget               $ 130       $   94       $ 104       $ 230
    2001 Estimated
    Capital
    Expenditures         $ 200        $ 100       $ 108       $ 304

    (A)  Amounts shown for joint ventures are on 100% basis.

According to Lyondell President and CEO Dan F. Smith, "The decrease in the overall capital budget is consistent with the current business environment, without compromising safe, efficient, environmentally responsible operations."

Spending for Intermediate Chemicals and Derivatives (IC&D) will decrease due primarily to completion of a major expansion of a toluene diisocyanates (TDI) facility in Pont de Claix, France, and to lower spending requirements related to Lyondell's 50 percent share of capital for the PO-11 joint venture with Bayer in Rotterdam, The Netherlands. Spending in 2002 on PO-11 is expected to be approximately $75 million.

Equistar's capital spending in 2002 primarily will target projects to improve plant efficiencies and to ensure regulatory and environmental compliance.

LCR's 2002 capital expenditures essentially will be flat compared to 2001 because increased regulatory spending related to Tier II gasoline requirements will offset reduced maintenance spending in 2002.

Lyondell Chemical Company, (www.lyondell.com ), headquartered in Houston, Texas, is the world's largest producer of propylene oxide (PO); the world's number three supplier of TDI (toluene diisocyanate); a leading producer of propylene glycol; a leading producer of other PO derivatives such as BDO (butanediol) and PGE (propylene glycol ether); and a producer of styrene monomer and MTBE as co-products of PO production. Through its 41% interest in Equistar Chemicals, LP, Lyondell also is one of the largest producers of ethylene, propylene and polyethylene in North America and a leading producer of polypropylene, ethylene oxide, ethylene glycol, high value-added specialty polymers and polymeric powder. Through its 58.75% interest in LYONDELL-CITGO Refining LP, Lyondell is one of the largest refiners in the United States, processing extra heavy Venezuelan crude oil to produce gasoline, low sulfur diesel and jet fuel. Lyondell is the third largest methanol producer in the U.S., through its 75% interest in Lyondell Methanol Company, L.P.

The statements in this release relating to matters that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Actual results could differ materially, based on factors including, but not limited to, future global economic conditions, technological developments, availability of capital markets, industry production capacity and operating rates, the supply/demand balance for Lyondell's and its joint ventures' products, competitive products and pricing pressures, further increases in raw material and/or energy costs, changes in governmental regulations and other risk factors. For more detailed information about the factors that could cause actual results to differ materially, please refer to Lyondell's Annual Report on Form 10-K for the year ended December 31, 2000, filed with the Securities and Exchange Commission in March 2001, and Lyondell's Quarterly Report on Form 10-Q for the quarter ended September 30, 2001, filed in November 2001.

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SOURCE Lyondell Chemical Company
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CONTACT: media, Anne M. Knisely, +1-713-309-2643, or investors, Patrick Quarles, +1-713-309-7141, both of Lyondell Chemical Company
CAPTION: LYOLOGO LYONDELL LOGO Lyondell Logo. (PRNewsFoto)[PM] HOUSTON, TX USA 09/21/2000