Blackstone Confirms Distribution of Premcor Shares

New York, April 29, 2005: Blackstone Capital Partners III today confirmed that it is effecting a distribution to its investors of all of the 19.1 million shares of Premcor common stock held by Blackstone and its affiliates.

Stephen A. Schwarzman, Chairman and Chief Executive Officer of The Blackstone Group L.P., said: “Blackstone fully supports the proposed merger between Premcor and Valero and we commend the management of Premcor for the excellent job that it has done in creating value for all shareholders since the Company’s initial public offering three years ago. We are making this distribution so that our limited partners will be able to make their own election as to the breakdown of consideration between Valero shares and cash that they want to receive in the merger, and whether and when they choose to monetize their investment.”

David Foley, Senior Managing Director of The Blackstone Group, added: “Blackstone has been an active investor in the energy sector, having invested in Kosmos Energy, Foundation Coal and Texas Genco during 2004, and we continue to look for outstanding management teams to back in new investments in the sector.”