Unocal Begins Redemption of Securities

Unocal Corporation said that Unocal Capital Trust has given notice to the Bank of New York (as trustee) to redeem the remaining outstanding 6-1/4% Trust Convertible Preferred Securities.

The 5.2 million shares expected to be redeemed have an aggregate liquidation value of about $261 million. These securities will be redeemed on Jan. 19, 2005, with a redemption premium of 1.25 percent. Including the premium and accrued and unpaid distributions, the total cost of the redemption program is $266 million, assuming no conversion of any of the preferred securities into common stock prior to the redemption.

The redemption of the trust convertible preferred securities is one aspect of a two-part $465 million cash expenditure program that Unocal announced earlier this month. The other aspect is the repurchase of Unocal's common stock.

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