HOUSTON, Dec. 9 /PRNewswire-FirstCall/ -- El Paso Merchant Energy, a business unit of El Paso Corporation (NYSE: EP), today announced it has entered into an agreement to sell its 40-percent interest in the Samalayuca II power project to an affiliate of GE Structured Finance, another partner in the project. The 700-megawatt power plant is located near Ciudad Juarez, Mexico. It is comprised of three natural gas-fired combined-cycle units and provides electricity to the Comision Federal de Electricidad for distribution to the state of Chihuahua, Mexico.

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The transaction is subject to customary approvals and is expected to close by year-end. This sale is part of El Paso's initiative to sell non-core assets, pay down debt, and further strengthen the company's balance sheet. This transaction increases El Paso's announced or completed asset sales to over $3.7 billion in 2002.

El Paso Corporation is the leading provider of natural gas services and the largest pipeline company in North America. The company has leading positions in natural gas production, gathering and processing, and transmission, as well as liquefied natural gas transport and receiving, petroleum logistics, power generation, and merchant energy services. El Paso Corporation, rich in assets and fully integrated across the natural gas value chain, is committed to developing new supplies and technologies to deliver energy. For more information, visit http://www.elpaso.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, including, without limitation, changes in commodity prices for oil, natural gas, and power; general economic and weather conditions in geographic regions or markets served by El Paso Corporation and its affiliates, or where operations of the company and its affiliates are located; the uncertainties associated with governmental regulation; the uncertainties associated with regulatory proceedings, appeals from regulatory proceedings, and any related litigation; political and currency risks associated with international operations of the company and its affiliates; competition; the successful implementation of the Balance Sheet Enhancement Program and the Strategic Repositioning Plan; and other factors described in the company's (and its affiliates') Securities and Exchange Commission filings. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference should be made to those filings for additional important factors that may affect actual results. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the Company, whether as a result of new information, future events, or otherwise.

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SOURCE El Paso Corporation

-0- 12/09/2002

/CONTACT: Communications and Government Affairs - Norma F. Dunn, Senior Vice President, Office: +1-713-420-3750, Fax: +1-713-420-3632, or Investor Relations - Bruce L. Connery, Vice President, Office: +1-713-420-5855, Fax: +1-713-420-4417, both with El Paso Corporation/

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