Sunoco Signs Letter of Intent to Sell Its Plasticizer Business to BASF

Sunoco Chemicals' Press Releases

SUNOCO SIGNS LETTER OF INTENT TO SELL ITS
PLASTICIZER BUSINESS TO BASF

PHILADELPHIA, April 24, 2003 – Sunoco, Inc. (NYSE: SUN) today announced the signing of a letter of intent for Sunoco to sell its plasticizer operations to BASF.

The sale includes the Sunoco Pasadena, Texas, site, including the land, phthalic anhydride, and oxo manufacturing plants, plus the plasticizer esters, 2-ethylhexanol, and phthalic anhydride businesses. Although the Sunoco Neville Island site is not part of the transaction, it will produce plasticizers for BASF under a tolling agreement.

Sunoco’s investment in the business, including inventory, is approximately $100 million. This transaction is not expected to have a material impact on Sunoco’s 2003 earnings. The parties have agreed not to disclose financial details of the transaction. BASF will combine the Sunoco assets with its current plasticizer business in North America following required regulatory approval and closing.

"We are pleased to have reached this agreement with BASF," said Sunoco Chairman and Chief Executive Officer John G. Drosdick. "This transaction is an excellent fit for both companies. As the Sunoco plasticizer assets become part of BASF’s global business there will be greater opportunities for synergy and efficiency improvements. Sunoco Chemicals will continue to focus its efforts on its world-scale phenol and polypropylene businesses."

This transaction, subject to satisfaction of certain conditions including regulatory approval, is expected to close by the end of the third quarter.

Sunoco, Inc., headquartered in Philadelphia, PA, is a leading manufacturer and marketer of petroleum and petrochemical products. With 730,000 barrels per day of refining capacity, approximately 4,300 retail sites selling gasoline and convenience items, interests in almost 11,000 miles of crude oil and refined product pipelines and 34 product terminals, Sunoco is one of the largest independent refiner-marketers in the United States. Sunoco is a growing force in petrochemicals with over five billion pounds of annual production capacity, largely chemical intermediates used in the manufacture of fibers, plastics, film and resins. Utilizing a proprietary technology, Sunoco also manufactures two million tons annually of high quality blast furnace coke for use in the steel industry. For additional information, visit Sunoco’s Web site at www.Sunocoinc.com.

NOTE: Those statements made in this release that are not historical facts are forward-looking statements intended to be covered by the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Sunoco believes that the assumptions underlying these statements are reasonable, investors are cautioned that such forward-looking statements are inherently uncertain and necessarily involve risks that may affect Sunoco's business prospects and performance causing actual results to differ from those discussed in the foregoing release. Such risks and uncertainties include, by way of example and not of limitation: general business and economic conditions; competitive products and pricing; changes in refining, chemical and other product margins; variation in petroleum-based commodity prices and availability of crude oil supply or transportation; fluctuations in supply of feedstocks and demand for products manufactured; changes in operating conditions and costs; changes in the expected level of environmental capital, operating or remediation expenditures; potential equipment malfunction; potential labor relations problems; the legislative and regulatory environment; plant construction/repair delays; nonperformance by major customers or suppliers; and political and economic conditions, including the impact of potential terrorist acts and international hostilities. These and other applicable risks and uncertainties have been described more fully in Sunoco's 2002 Form 10-K filed on March 7, 2003 and in other periodic reports filed with the Securities and Exchange Commission. Sunoco undertakes no obligation to update any forward-looking statements in this release, whether as a result of new information or future events.