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))) Phillips 66 Testing New Technology
at Stores

))) BARTLESVILLE, OK (August 1, 2001)

Motorists filling their gas tanks no longer need to fill their pockets with cash or credit cards at select Phillips 66 Company stations. Today, the company announced it began testing a radio frequency identification (RFID) payment system, called PHILPASS™, in 20 of its Kicks 66 stores in the Kansas City metropolitan area. Similar to technology drivers use on U.S. toll roads, PHILPASS allows customers to make purchases at the pump and inside the store, quickly and conveniently, without swiping a credit card or paying an attendant.

The PHILPASS system uses radio frequency signals to enable two-way, wireless communication between a key ring tag and the gasoline pump or counter-top reader. At the pump, customers using PHILPASS can make gas purchases by holding the key tag in front of the Phillips 66 shield on the gasoline dispenser. When the shield lights up, the secure transaction has been approved and is charged to a credit card of choice.

Kansas City customers can experience the same convenience when paying for purchases inside Kicks 66 stores. "PHILPASS gives our customers faster, more convenient service at our stations," said Ray Schremmer, PHILPASS project manager. "This technology is enabling Phillips to expand our payment options, while making our system easier to use for our customers."

PHILPASS key tags are free for customers at participating company stores during the test. Motorists can request a key tag and link it to any of the following credit cards: Phillips 66, Phillips 66 MasterCard, American Express, Diners/Carte Blanche, Discover, MasterCard, or VISA.

Phillips has worked with Texas Instruments Radio Frequency Identification (TI-RFid™) Systems to develop this automated payment system. In addition, Marconi Commerce Systems, one of Phillips' fuel dispenser vendors, developed a counter-top RFID reader in the stores. Like the pump-mounted reader, the in-store reader works with the PHILPASS key tag and quickly and easily completes the purchase.

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Phillips 66 Company

Phillips 66 Company is a division of Phillips Petroleum Company (NYSE: P). Phillips is an integrated petroleum company with interests around the world. Founded in Bartlesville, Okla., in 1917, the company had annual revenues of $21.2 billion for 2000. Phillips markets gasoline in the United States through approximately 300 company-operated gasoline units and to more than 880 gasoline marketers who resell through 5,700 branded gasoline units. More information is located on the World Wide Web at www.phillips66.com.

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