HOUSTON, Dec 19, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- El Paso Marketing, L.P. (EPM), a subsidiary of El Paso Corporation (NYSE: EP), announced today that it has reached an agreement to sell the majority of its remaining wholesale power trading portfolio to Morgan Stanley Capital Group Inc. for a total of $442 million. The sale includes all power positions other than its Cordova tolling arrangement and certain positions in the PJM power pool.

"This sale will significantly advance our goal of exiting the domestic power trading business," said Doug Foshee, president and chief executive officer of El Paso Corporation. "In addition, this transaction will eliminate market risk for most of our power positions and further simplify our business, which will allow El Paso Marketing to move closer to its goal of focusing on physical marketing and trading services that support our production business."

As part of the sale announced today, EPM will enter into new transactions with Morgan Stanley that will completely offset certain long-dated power positions in the remaining PJM power portfolio. The transaction eliminates the company's exposure to power price movement for the assets being sold and, upon gaining all required approvals and third-party consents, will result in EPM receiving approximately $442 million from Morgan Stanley, including return of collateral. At that point, excluding the Cordova tolling position, EPM's credit exposure will have been reduced from the current 24 counterparties to two, both of whom are investment grade. In addition, EPM's power deal count will be reduced from the current 921 deals to 104. The company will continue to manage the remaining PJM power portfolio with its sole exposure being to locational basis price volatility associated with delivery obligations in the PJM market.

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 obtain timely approvals and third-party consents to the transfer of the power positions; potential impacts on the return of collateral if such approvals and consents are not obtained on all power positions; 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

investor and public relations, Bruce L. Connery, Vice President, 1-713-420-5855, or media relations, Bill Baerg, Manager, 1-713-420-2906, both of El Paso Corporation

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