Pioneer Announces Redemption of Notes

Pioneer Natural Resources announced that it will redeem for cash all of its outstanding 9-5/8% Senior Notes due 2010 (the "9-5/8 Notes") and 7.50% Senior Notes due 2012 (the "7.50 Notes" and together with the 9-5/8 Notes, the "Notes"). The redemption date of the Notes will be October 3, 2005. The redemption price for the 9-5/8 Notes will be 100% of the principal amount thereof, plus (i) accrued and unpaid interest, if any, to, but not including, the date of redemption and (ii) a make-whole premium. The make whole premium will be calculated by Credit Suisse First Boston on the third business day preceding the redemption date and will equal the excess of:
    (1) the sum of the present values, calculated as of the date of
        redemption using a reference treasury yield plus 50 basis
        points, of:
        (a) each interest payment that, but for such redemption, would
            have been payable on the note being redeemed on each
            interest payment date occurring after the date of
            redemption (excluding any accrued interest for the period
            prior to the date of redemption); and
        (b) the principal amount that, but for such redemption, would
            have been payable at the final maturity of the note being
            redeemed over
    (2) the principal amount of the note being redeemed.

The redemption price for the 7.50 Notes will be 100% of the principal amount thereof, plus (i) accrued and unpaid interest, if any, to, but not including, the date of redemption and (ii) a make-whole premium. The make whole premium will be calculated by Credit Suisse First Boston on the third business day preceding the redemption date and will equal the excess of:

    (1) the sum of the present values, calculated as of the date of
        redemption using a reference treasury yield plus 50 basis
        points, of:
        (a) each interest payment that, but for such redemption, would
            have been payable on the note being redeemed on each
            interest payment date occurring after the date of
            redemption (excluding any accrued interest for the period
            prior to the date of redemption); and
        (b) the principal amount that, but for such redemption, would
            have been payable at the final maturity of the note being
            redeemed over
    (2) the principal amount of the note being redeemed.

The 9-5/8 Notes were originally issued on April 11, 2000 and, as of August 30, 2005, there is approximately $12.6 million of aggregate principal amount outstanding. The 7.50 Notes were originally issued on April 30, 2002 and as of August 30, 2005, there is approximately $16.2 million of aggregate principal amount outstanding.

On and after the redemption date, the Notes will no longer be deemed outstanding, interest will cease to accrue thereon, and all rights of the holder of the Notes will cease, except for the right to receive the redemption price, without interest thereon.

The notice of redemption will be mailed to registered holders of the Notes on or about September 1, 2005. Notes are to be surrendered to The Bank of New York, as trustee and paying agent, in exchange for payment of the redemption price. Questions relating to, and requests for additional copies of, the notice of redemption should be directed to The Bank of New York at 600 N. Pearl Street, Suite 420, Dallas, Texas 75201, Attn: John Stohlmann, 214-880-8238.

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