DENVER, April 25, 2000-VeloCom Inc., an international broadband communications company, today announced that El Paso Energy Communications Company, a wholly owned subsidiary of El Paso Energy Corporation (NYSE: EPG) of Houston, has made a $50 million investment in return for a minority interest in VeloCom. This investment will give El Paso Energy Communications a presence in the international telecommunications market as well as a seat on VeloCom's Board. VeloCom will use the proceeds to continue the development of its broadband networks in Argentina and Brazil. Closing was completed on April 20, 2000.

VeloCom gains a strategic partner with El Paso Energy Communications' investment. Their operational expertise in infrastructure development and El Paso Energy Corporation's ongoing commitment to South America will enhance the ability of VeloCom's subsidiaries in Argentina and Brazil to deploy networks with full broadband capability.

VeloCom was formed in 1998 with the goal of becoming the leading provider of fixed telephony and data services to major markets in Latin America. Economic growth and the evolution of wireless technology paved the way for VeloCom to provide data transmission, Internet access, and voice services to this region. VeloCom and its Vesper partners, Bell Canada International and Qualcomm Inc., have designed and developed a fixed wireless telephony system in Brazil and will use their exclusive duopoly license to compete against the incumbent local telephone operators.

"This investment demonstrates the convergence between the telecom and energy industries," said Michael Quinn, chief corporate development officer for VeloCom. "And it is being executed for the first time in Latin America by VeloCom."

"We believe that our investment in VeloCom offers an excellent opportunity to expand our services in Brazil and Argentina as well as other Latin American countries where we already have a significant presence in the energy arena," said William A. Wise, president and CEO of El Paso Energy Corporation. "This reflects our commitment to developing our U.S. assets for telecommunications and exemplifies our strategy of working with strategic partners."

"This is a terrific fit for us," said David Leonard, president and CEO of VeloCom. "We can integrate our broadband wireless access with their infrastructure development capability and ultimately transmit digitally formatted data and video, from point to multi-point."

About El Paso Energy Communications
El Paso Energy Communications is developing a state-of-the-art telecommunications network along key segments of El Paso Energy's U.S. coast-to-coast natural gas pipeline system as well as analyzing opportunities in international investment in areas with existing energy infrastructure. El Paso Energy Corporation provides comprehensive energy solutions through its strategic business units, which hold over $16 billion dollars in assets. The company owns North America's largest natural gas pipeline system, both in terms of throughput and miles of pipeline, and has operations in natural gas transmission, merchant energy services, power generation, international project development, gas gathering and processing, and gas and oil production. On January 18, 2000 El Paso Energy announced that it has agreed to merge with The Coastal Corporation in a deal valued at $16 billion, including approximately $6 billion of assumed debt and preferred equity. Visit El Paso Energy's web site at www.epenergy.com

About VeloCom Inc.
Denver-based VeloCom is emerging as a leading provider of competitive voice, data and Internet services in key markets in Latin America. Privately held, VeloCom was formed in June 1998 under the name WLL International Inc. Fred Vierra, chairman; David Leonard, CEO and president; and Nick Kauser, acting chief technical officer, lead VeloCom. Visit VeloCom's Web site at www.velocom.com

Contacts:

Jim Kendrick
Metzger Associates
(303) 786-7000
jim@metzger.com

Anne Doris
VeloCom Inc.
(303) 874-1144
doris@velocom.com