Marathon Continues to Mull Company Separation

On July 31, 2008, Marathon's Board of Directors is evaluating the potential separation of the Company into two strong, independent, publicly traded companies, each focused on its own set of business opportunities. Today, Marathon announced that its Board of Directors has decided to continue to evaluate the separation in order to fully assess the impact of recent changes in the global economic environment and financial markets.

"Our review thus far indicates that a separation of the businesses may enhance shareholder value, however, the recent extreme volatility in the capital and commodity markets requires further evaluation before a decision can be reached. Concluding this evaluation remains a high priority with timing of a decision largely dependent on external market factors," said Clarence P. Cazalot, Jr., Marathon president and CEO.

"Our primary focus through this challenging economic environment is delivering value to our shareholders through disciplined investment in profitable growth and a solid, competitive dividend. Marathon is in a strong financial and operational position and we will maintain flexibility in our spending plans to adjust to market conditions," added Cazalot.