HOUSTON, TEXAS, December 19, 2002-El Paso Corporation (NYSE:EP) today provided an update on its liquidity, asset sales program, and business plans. The collateral requirements associated with the recent ratings actions on El Paso's debt have been consistent with expectations, and the company's liquidity remains strong. As of December 18, 2002, El Paso had $3.4 billion of available liquidity.

El Paso continues to make excellent progress on asset sales, having closed more than $3.6 billion in sales transactions thus far in 2002. The company expects to close approximately $1.4 billion of additional non-core asset sales by the end of the first quarter 2003, with another approximate $1 billion of asset sales expected to close during the remainder of 2003. All of these sales are part of El Paso's strategy to sell non-core assets to reduce debt and enhance liquidity.

The company's core businesses-pipeline, production, midstream, and non-merchant power-continue to perform well. In addition, the strengthening natural gas price environment and growing need for new infrastructure provide a solid base for these businesses in 2003 and beyond, and highlight El Paso's position as North America's leading provider of natural gas services. The company is implementing its plan to exit the trading business and will adopt the new accounting rules for that business in the fourth quarter. Additionally, El Paso is reviewing its other businesses as it rationalizes its non-core holdings. The analysis of the financial impact of these changes on trading and other businesses in the fourth quarter 2002 and full-year 2003 is ongoing. In February 2003, El Paso will provide an update on its capital investment program, asset sale progress, financing plan, and 2003 earnings and cash flow outlook.

El Paso Corporation is North America's leading provider of natural gas services. The company has core businesses 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 to communities around the world. For more information, visit www.elpaso.com.

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; political and currency risks associated with international operations of the company and its affiliates; inability to realize anticipated synergies and cost savings associated with mergers and acquisitions on a timely basis; difficulty in integration of the operations of previously acquired companies, competition, 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 must be made to those filings for additional important factors that may affect actual results.