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Shell Oil Selects IBM to Pilot Wireless Gas Station

New e-Business-Based Management Systems Linked to Enterprise Data Will Enable Remote Monitoring to Improve Operations in a Service Station Network

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HOUSTON, - 27 Sep 2001: Shell Oil Company has selected IBM as lead integrator for its ``e-Station'' prototype, to be conducted in the U.S. Shell's e-station will leverage IBM expertise and wireless technology to link company-operated retail locations with corporate systems, helping Shell to monitor and improve its retail operations, and to reduce operating costs.

Significantly, the announcement is the third in a series of agreements between Shell Oil or its parent company Royal Dutch/Shell, and IBM this year. It continues IBM's push to help companies integrate wireless technology into their existing e-business infrastructure and extend their products and business processes to non-traditional computing devices. In January, Shell deployed seismic research applications onto an IBM Linux supercluster based on the IBM eServer x330, and in July, Shell named IBM single-source provider for its five regional MegaCentre data processing facilities.

Today's announcement expands this relationship from supply chain and enterprise into the retail network arena for the first time. IBM Global Services wireless teams will develop an end-to-end infrastructure and support for Internet-based systems. These systems will enable Shell to better manage the operating costs of its retail operations. The infrastructure will also support advanced customer applications at a future date.

Shell Oil Products LLC President Gus Noojin, said: ``This is a good example of how Shell can leverage technology developed for residential and industrial sectors to improve our retail network operations, and to grow the business here in the US. We look forward to a successful prototype.''

Eric Leon, general manager, IBM Global Chemical and Petroleum Industry, said: ``Just as Shell management works to remove constraints on the flow of petroleum from the ground to the gas pump, IBM strives to free the flow of information, liberating Shell assets and empowering management to take strategic actions on a grass-roots local retail level. This is a powerful management opportunity for Shell to both reduce costs and increase business.''

The selection of IBM Global Services will provide Shell with greater strategic control over operations and expenses, with significant potential savings for Shell in overall site operating costs if a successful pilot program is rolled out in the United States.

The initial pilot will be conducted among a set of representative retail stations. The pilot will determine how future technology will be rolled out in several major regions within Shell's global retail business. IBM will deploy technology from Silicon Energy, Echelon, CP Technology Company, and R&D Technology Solutionz, among others. This technology will be fundamentally grounded in an open and extensible architecture assuring scalability and compatibility.

About Shell Oil Company

Shell Oil Products Company LLC is a wholly owned subsidiary of Shell Oil Company. The company holds the equity interest of Equilon Enterprises LLC, Motiva Enterprises LLC, and the Deer Park Refining Limited Partnership. These interests collectively are engaged in the refining, marketing, and transportation of crude oil and petroleum products in the United States.

Shell Oil Company, based in Houston, Texas, is an affiliate of the Royal Dutch/Shell Group of Companies.

The Royal Dutch/Shell Group of companies, ``the Group'', is a diverse group of energy companies with operations in more than 130 countries. The Group's businesses include oil and gas exploration and production; power generation; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects including wind and solar power. The Group's parent companies are Royal Dutch Petroleum Company which has a 60% interest in the Group and The ``Shell'' Transport and Trading Company plc which has a 40% interest in the Group. Shares in the parent companies are traded on stock exchanges in Europe and the USA.

About IBM

IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. IBM works with companies of all sizes around the world to deploy the full range of IBM technologies. The fastest way to get more information about IBM is through the IBM home page at http://www.ibm.com.

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IBM is a registered trademark of International Business Machines Corporation in the United States and other countries. The IBM eServer brand consists of the established IBM e-business logo with the following descriptive term ``server'' following it. All other company, product or service names mentioned may be trademarks or service marks of others.

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