SUNOCO AND EPSILON FORM POLYPROPYLENE JOINT VENTURE

PHILADELPHIA, June 26 - - Sunoco, Inc. (R&M) and Epsilon Products Company announced that the companies have formed a joint venture combining Epsilon’s polypropylene plant at Marcus Hook, PA with Sunoco Chemicals’ polymer-grade propylene splitters. The polypropylene plant is adjacent to Sunoco’s Marcus Hook refinery. The new venture will be owned by Sunoco and an affiliate of Washington Penn Plastic Co., Inc., BAR-L, currently an owner of Epsilon.

The venture will integrate Epsilon’s quality and commitment to customers offering a full line of polypropylene products with Sunoco’s strong petrochemical feedstock base. The agreement provides for future expansion of both propylene and polypropylene production to meet demand growth.

Robert J. Ockun, formerly of Montell Polyolefins, has been appointed president of the venture. Ockun said, "Having the backing of a major petrochemical producer such as Sunoco and the marketing expertise of Washington Penn Plastics Co., will enable us to continue producing low-cost, high-quality products while maintaining our quality culture and total dedication to customers."

John G. Drosdick, Sunoco’s chief executive officer said, "This joint venture provides Sunoco the opportunity to extend its chemicals business into the fast-growing polypropylene market. Integration of the business with Sunoco will provide the scale necessary to maintain a low-cost competitive position."

BAR-L, Inc. is a privately-owned affiliate of Washington Penn Plastics Co., Inc. and is part of Audia Group, based in Washington, PA. Audia Group is comprised of Sirius Chemicals, a worldwide trader of monomers, resins, and chemicals; Uniform Color Company, a producer of high quality custom color concentrates, located in Holland, MI; and Washington Penn Plastics Co., Inc., a distributor, thermoplastics compounder, producer of color concentrates and the largest compounder of custom polyolefins in North America.

Sunoco, Inc. (NYSE: SUN), headquartered in Philadelphia, is one of the largest independent petroleum refiner-marketers in the United States. Sunoco operates five domestic refineries with 730,000 barrels per day of crude oil processing capacity and markets gasoline throughapproximately 3,500 retail outlets in 17 states from Maine to Virginia and West to Indiana.

Sunoco sells lubricants and petrochemicals worldwide, operates domestic pipelines and terminals and manufactures metallurgical-grade coke for use in the steel industry.