ANCHORAGE, ALASKA, February 25, 1998 – Alyeska Pipeline Service company announced today that Houston Contracting Company/NANA Joint Venture has been selected as the maintenance and equipment contractor for the Trans Alaska Pipeline System. These tasks were previously divided between three contractors along the pipeline corridor: Houston Contracting Company/NANA Joint Venture, Alaska Petroleum Contractors, and Price/Ahtna Joint Venture. This contract does not affect Alyeska's existing contract with Ahtna Construction and Primary Products in the Ahtna lands area.

The change to a single contractor will occur by April 1. Alyeska will work with Houston Contracting Company/NANA Joint Venture over the next month to create a suitable and smooth transition plan.

The new three-year contract is estimated at $35 to 40 million annually. The scope of work has not diminished, however it is anticipated that the conversion from the existing three to a single contractor will result in staff and performance efficiencies and significant savings to Alyeska. The contracting strategy will also better align the company with its 1997 restructuring.