HOUSTON, TEXAS, August 27, 2001—El Paso Corporation (NYSE:EPG) announced today that Peter B. Smith has joined El Paso Merchant Energy North America as senior managing director. In this role, Smith will be responsible for the development of insurance-related products to support El Paso Merchant Energy's growing global energy portfolio.

Smith comes to El Paso with over 20 years experience in the production and sale of insurance products. During his 10 years with HCC Insurance Holdings, Inc., Smith held several positions including holding company executive vice president and director, as well as chief executive officer of its largest subsidiary.

Prior to his affiliation with HCC Insurance Group, Smith was vice president with Frank B. Hall and Company in New York, where he focused on sales and production efforts, as well as client services in Latin America and the Far East.

"We are very pleased to have Peter join the El Paso management team. Peter's entrepreneurial experience in the insurance industry will be valuable to our continued expansion of the merchant business into the financial services arena," said Clark C. Smith, president of El Paso Merchant Energy North America.

El Paso Corporation is committed to meeting energy needs throughout North America and the world with operations that span the energy value chain from wellhead to electron. The company is focused on speeding the development of new energy sources to address critical energy shortages across the globe. Visit El Paso at 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. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that the anticipated future results will be achieved. Reference should be made to the company's (and its affiliates') Securities and Exchange Commission filings for additional important factors that may affect actual results.