HOUSTON, Aug. 8 /PRNewswire-FirstCall/ -- El Paso Corporation (NYSE: EP) announced today that it has agreed to sell certain South Louisiana midstream entities to Crosstex Energy, L.P. (Nasdaq: XTEX) for $500 million. The sale includes interests in the Eunice, Pelican, Riverside, Sabine Pass, and Blue Water processing and fractionation facilities. The transaction is subject to regulatory approval, other closing conditions, and post-closing adjustments. El Paso expects to report a pre-tax gain of approximately $400 million on this sale, which is expected to close in the fourth quarter of 2005. The company is in the process of selling its interest in a processing plant in South Texas, which will conclude its midstream asset sales.

This transaction supports the company's plan to reduce debt, net of cash, to approximately $15 billion by year-end 2005. Since its March 17, 2005 long- range plan update, the company has announced or closed approximately $1.2 billion of its targeted $1.2 billion to $1.6 billion of asset sales.

El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America's largest natural gas pipeline system and one of North America's largest independent natural gas producers. For more information, visit http://www.elpaso.com .

Cautionary Statement Regarding Forward-Looking Statements

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, the ability to implement and achieve our objectives in the long-range plan; our ability to close our announced asset sales on a timely basis; the uncertainties associated with governmental regulation; 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. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.

SOURCE El Paso Corporation
08/08/2005

CONTACT:
Investor and Public Relations, Bruce L. Connery, Vice President, 1-713-420-5855, or fax, 1-713-420-4417
or
Media Relations, Chris Jones, Manager, 1-713-420-4136, or fax, 1-713-420-4417
Both of El Paso Corporation

8258 08/08/2005 16:40 EDT http://www.prnewswire.com