Williams Remains Committed to Risk Management Business

Energy Marketing and Risk Management Viable Way to Reduce Customer Price Risk, Create Value for Investors

TULSA, Okla. -- Williams (NYSE:WMB) said it remains convinced of the viability of energy marketing and risk management and is committed to its business in that area.

Williams made the statement in light of another energy company's announcement to limit its energy marketing and trading position.

"Williams firmly believes it is possible for the company to operate a robust energy marketing and risk management business and maintain a strong investment-grade rating, and on Tuesday I announced a number of steps that would allow just that," said Steve Malcolm, Williams' president, chairman and CEO. "Among those steps is the formation of an internal team comprised of some of the brightest minds in the industry, dedicated to resolving for Williams lingering uncertainty surrounding the creditworthiness of energy marketing and risk management."

While the market is focusing on trading, Williams' focus is risk management and trading around its assets, Malcolm said. Areas of difference in Williams' energy marketing and risk management philosophy include:

* Williams employs conservative models in its risk assessment, preferring to lock in long-term structured transactions over one, 10, even 20 years, rather than trying to live on day-to-day margins.

* Williams' business is not driven by volume. "Just look at the rankings," Malcolm said. "We have a different business model that is dependent on long-term arrangements rather than daily trading volume."

* Williams reports revenues on a net basis, not gross. "We do this because it gives us more accurate, meaningful numbers," Malcolm said. "As of today, we are the only major company that reports this way. Others may join us soon."

* The limited amount of trading Williams does is a direct result of interaction with customers, based on the need to meet requirements of long-term contracts.

"The market, the media and the world need to know that it is entirely possible to run an honest, profitable energy marketing and risk management business, using a dose of prudence and legitimate accounting procedures," Malcolm said. "Williams is that example."

About Williams (NYSE: WMB)

Williams moves, manages and markets a variety of energy products, including natural gas, liquid hydrocarbons, petroleum and electricity. Our operations span the energy value chain from wellhead to burner tip. Based in Tulsa, Okla., Williams and its 12,000 worldwide employees contributed $45 million in 2001 to support the environment, health and human services, the arts, and education in its communities. Williams information is available at www.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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