HOUSTON, TEXAS, February 24, 2000—El Paso Energy International, a business unit of El Paso Energy Corporation (NYSE:EPG), announced today that it has formed a 50/50 joint venture with a subsidiary of Hawaiian Electric Industries (HEI) to own and operate five electric power generating facilities owned by East Asia Power Resources Corporation (EAPRC), a public Philippine company. The combined generating capacity of the five facilities totals approximately 390 megawatts.

Throughout 1999, El Paso has been increasing its ownership position in EAPRC and currently controls 92 percent of the company. Over the past year, EAPRC's generating facilities, some of which are barge-mounted, have been repositioned, refurbished, and recontracted.

"The joint company is now poised to expand its generating capacity through new construction and acquisitions and to undertake related energy projects and businesses in the Philippines," said John D. Hushon, president of El Paso Energy International. "We look forward to working with HEI Power Group to enhance our position as a key player in the Philippine power market."

HEI will invest approximately $87 million plus up to an additional $6 million in contingent payments to acquire a 50-percent stake in the joint company, which controls one of the two largest independent power producers in the Philippines.

With over $16 billion in assets, El Paso Energy Corporation provides comprehensive energy solutions through its strategic business units: Tennessee Gas Pipeline Company, El Paso Natural Gas Company, Southern Natural Gas Company, El Paso Merchant Energy Company, El Paso Energy International Company, El Paso Field Services Company, and El Paso Production Company. 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.

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.