HOUSTON, TEXAS, February 28, 2001-El Paso Merchant Energy, a business unit of El Paso Corporation (NYSE:EPG), announced today that it was awarded contracts for a total of 270.7 million cubic feet of natural gas per day (MMcf/d) of capacity on the El Paso Natural Gas pipeline system. These contracts were obtained through bids submitted in a competitive open season process. The amount of capacity awarded to successful bidders was determined through proration in accordance with the open season guidelines.

"Going forward, Merchant Energy will continue to focus on contributing to the solutions for the energy problems in the western region," said Clark C. Smith, president of El Paso Merchant Energy North America. "For example, yesterday we made a firm commitment to provide power to the state of California in a five-year, fixed-price contract with the Department of Water Resources. The relationship that we have built with California over the past 50 years is very important to El Paso and we intend to continue to support the state with dependable energy solutions."

The company will begin using its newly awarded capacity on June 1, 2001, following the expiration of its existing contract on May 31, 2001.

El Paso Corporation, the largest and most broadly based natural gas company in the world, spans the energy value chain from wellhead to electron. With an enterprise value in excess of $50 billion, El Paso is a leader in every phase of the natural gas industry. The company owns and operates a significant portion of the North American natural gas delivery grid, operates the fastest growing, most sophisticated energy merchant group, and is the nation's third largest natural gas producer. El Paso, a leader in risk management techniques, is focused on maximizing shareholder value, transforming existing markets, and speeding the development of new markets. 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.