Williams' 3Q '01 SEC Request Resolved

Unrelated to Energy Activities or Mark-to-Market Accounting

TULSA, Okla. -- The president of Williams (NYSE: WMB) said that news stories stating the company is "facing inquiries" by the Securities & Exchange Commission regarding its financial reporting from the third quarter of 2001 are apparently related to an issue that was resolved in February.

Steve Malcolm, in response to investor questions over a Tuesday Wall Street Journal story quoting unnamed sources, said the company received a confidential request for additional information on Feb. 1 from the SEC's division of corporate finance in Washington related to the company's third-quarter 2001 Form 10Q. The information requested dealt exclusively with items related to Williams' former telecommunications business.

"We provided the information, were notified by telephone on Feb. 22 that the SEC in Washington had no further questions and we were not asked to amend any of our filings," Malcolm said. "While the SEC is certainly capable of re-examining any of our filings at any time, we believe this matter has been resolved."

About Williams (NYSE: WMB)

Williams, through its subsidiaries, connects businesses to energy, delivering innovative, reliable products and services. Williams information is available at williams.com.

Portions of this document may constitute "forward-looking statements" as defined by federal law. Although the company believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the "safe harbor" protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the company's annual reports filed with the Securities and Exchange Commission.

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