LYO Lyondell Chemical

Lyondell Announces Capital Budget for 2004 HOUSTON, Jan. 9 /PRNewswire-FirstCall/ -- Lyondell Chemical Company today announced the 2004 capital expenditure budget for Lyondell and its ventures, Equistar Chemicals, LP and LYONDELL-CITGO Refining LP (LCR). Components of the 2004 capital budget and the estimated 2003 capital expenditures are shown below. Millions Intermediate Equistar LYONDELL-CITGO Lyondell and of dollars Chemicals & Chemicals (C) Refining (C) Proportionate Derivatives Share of Equity Investments 2004 Capital Budget $ 69 (A) $ 148 $ 90 $ 226 (D) 2003 Estimated Capital Expenditures $ 339 (B) $ 108 $ 48 $ 443 (D) Lyondell's Current Ownership Position 100% 70.5% 58.75% (A) Includes $10 million of cash contributions to PO joint venture for capital expenditures. (B) Includes $57 million of cash contributions to PO joint ventures for capital expenditures and $20 million of capitalized interest related to PO-11. Also includes $218 million for the purchase of the previously leased BDO-2 facility. (C) Amounts shown for joint ventures are on 100 percent basis. (D) At current ownership levels. During 2004, capital spending in Intermediate Chemicals & Derivatives (IC&D) will focus on maintenance and regulatory spending. Spending in these categories is planned to be relatively unchanged versus 2003. Equistar's 2004 spending is expected to increase as a result of environmental spending. This will be focused on investment at Equistar's Gulf Coast plants related to tightened emission control requirements for the eight- county Houston/Galveston region. Equistar's estimated 2003 capital expenditures include $18 million relating to the expiration of a railcar operating lease. Equistar expects to refinance the majority of these cars under a new lease arrangement in early 2004. Lyondell's 2004 contribution to support LCR's capital spending is currently expected to be approximately $53 million, reflecting increased spending related to environmental regulatory compliance. ABOUT LYONDELL Lyondell Chemical Company, (http://www.lyondell.com/ ), headquartered in Houston, Texas, is a leading producer of: propylene oxide (PO); PO derivatives, including toluene diisocyanate (TDI), propylene glycol (PG), butanediol (BDO) and propylene glycol ether (PGE); and styrene monomer and MTBE as co-products of PO production. Through its 70.5% 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 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. FORWARD LOOKING STATEMENTS 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: the cyclical nature of the chemical and refining industries; availability, cost and volatility of raw materials and utilities; governmental regulatory actions and political unrest; global economic conditions; industry production capacity and operating rates; the supply/demand balance for Lyondell's and its joint ventures' products; competitive products and pricing pressures; access to capital markets; technological developments 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, 2002 and Lyondell's Quarterly Report on Form 10-Q for the quarter ended September 30, 2003 which was filed in November 2003. DATASOURCE: Lyondell Chemical Company CONTACT: media, Susan Moore, +1-713-309-4645, or investors, Doug Pike, +1-713-309-7141, both of Lyondell Chemical Company Web site: http://www.lyondell.com/

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