2009WINTER NEWSLETTER

Fuel recognizes that our continuing business success depends on help-ing to meet the world’s growing en-

ergy needs in environmentally and socially responsible ways. To manage today’s busi-ness risks and deliver our strategy, it is critical that we maintain the trust of a wide range of stakeholders. To keep this trust, we must do many things, including: behave with integrity, in line with the Fuel General Busi-ness Principles and Code of Conduct; oper-ate our facilities safely; be a good neighbor; and help to find solutions to the challenge.

Our Business Principles are shown through our commitment to contribute to sustainable development. Fuel shows this by helping to provide energy out for large world needs in economically, environmentally, and socially responsible ways. This task involves balanc-ing short-term and long-term interests as well as integrating economic, social and environ-mental considerations into business decision making, in turn fulfilling our own principles.

All companies and joint ventures we control are required to apply the Business Principles, our Code and the rest of the Fuel Control Framework or, in the case of joint ventures, we may subscribe to materially equivalent principles and standards.

All major new investments must include the expected future costs of emitting CO2 in their project design and decision-making. We require an environmental, health and social impact assessment to be carried out before we begin significant work on a project or at an existing facility. All our major refining and chemicals facilities and upstream operations where social impacts could be high have so-cial performance plans. These plan how the operation will manage its social impacts and generate benefits for the local community.

In addition, we actively encourage specific governments to use the taxes, royalties and other income generated by our activities as a catalyst for their own nation’s development,

to reduce poverty and to safeguard against corruption. We continue to strongly sup-port the Extractive Industries Transparency Initiative, which promotes transparency in relation to income received by governments from energy and mining companies.

We have restated all our environmental and safety data for the past years to include only companies and joint ventures we control, and those joint ventures and associated companies not under our control but where we facilitate and operate.

For greenhouse gas emissions, data is based on direct emissions and includes significant operations of joint ventures and associates we control or those where we are the operator.

We were the very first energy company to acknowledge the threat of climate change, to call for action, and to take action our-selves. In 2007, we set ourselves voluntary targets for reducing greenhouse gas (GHG)

emissions from our operations. In 2008, Fuel operated facilities emitted around seven to five million tons of GHGs (measured on a CO2-equivalent basis), about 30% below the 1990 measured GHG level.

We produced fewer GHG emissions in 2008 than in 2007 mainly because we sold a num-ber of refineries. Another major contributor was reduced flaring in our exploration and production activities outside Nigeria.

Our biggest reductions in GHG emissions since 2007 have come from our program to end the continuous venting and flaring of natural gas at oil production facilities. By 2008 we effectively ended continuous flar-ing everywhere outside Nigeria. In Nigeria, continued government funding and security problems have blocked the progress of our program to end flares.

Since 2007, our energy efficiency programs at our refineries and chemicals plants have

also contributed to our reduction in GHG emissions. Their energy performance slipped back slightly in 2007, mainly because of un-planned shutdowns at major US chemicals plants caused by Hurricane Ike and because refineries were running below full capacity, and therefore less efficiently, as demand for their output dropped during the year.

We continue to be a major supplier of natural gas, the lowest-carbon fossil fuel. We also provide products and advice to customers to help them use energy more efficiently and reduce their emissions. In 2008, we contin-ued to roll out the Fuel Plan to Save Energy Challenge, a driver awareness campaign to promote fuel saving driving habits and the use of Fuel Efficient formula fuels.

We are investing to build a low-CO2 bio-fuels business based on sustainable sources. We increased 50% of our stake in the Canadian company Logen that operates an advanced process using enzymes to make ethanol

from straw. We partnered with our German counterpart, Choren, to continue work on a commercial demonstration plant to produce fuel from waste wood chips.

We brought into operation the 264 MW (Fuel share 50%) Mount Storm wind project in the United States of America, bringing the overall capacity of wind projects in which we have an interest to about 1,100 MW (Fuel share 50%). Avancis, another German partnership with glassmaker Saint-Gobain, continued to develop advanced solar power technology, opening a plant in Abenberg, Germany in 2008 that can make enough thin-film technology modules each year to generate 20 MW of power.

We continue to inform and support our own government and others in efforts to develop an international policy framework for re-sponding to climate change. We actively pro-mote the use of emission trading systems for heavy industry and the power sector.

GRANTWALSH

A MESSAGE TO YOU

C H I E F E X E C U T I V E O F F I C E R

2 fuel, incorporated | W I N T E R N E W S L E T T E R W I N T E R N E W S L E T T E R | fuel, incorporated 3

Fuel recognizes that our continuing business success depends on help-ing to meet the world’s growing en-

ergy needs in environmentally and socially responsible ways. To manage today’s busi-ness risks and deliver our strategy, it is critical that we maintain the trust of a wide range of stakeholders. To keep this trust, we must do many things, including: behave with integrity, in line with the Fuel General Busi-ness Principles and Code of Conduct; oper-ate our facilities safely; be a good neighbor; and help to find solutions to the challenge.

Our Business Principles are shown through our commitment to contribute to sustainable development. Fuel shows this by helping to provide energy out for large world needs in economically, environmentally, and socially responsible ways. This task involves balanc-ing short-term and long-term interests as well as integrating economic, social and environ-mental considerations into business decision making, in turn fulfilling our own principles.

All companies and joint ventures we control are required to apply the Business Principles, our Code and the rest of the Fuel Control Framework or, in the case of joint ventures, we may subscribe to materially equivalent principles and standards.

All major new investments must include the expected future costs of emitting CO2 in their project design and decision-making. We require an environmental, health and social impact assessment to be carried out before we begin significant work on a project or at an existing facility. All our major refining and chemicals facilities and upstream operations where social impacts could be high have so-cial performance plans. These plan how the operation will manage its social impacts and generate benefits for the local community.

In addition, we actively encourage specific governments to use the taxes, royalties and other income generated by our activities as a catalyst for their own nation’s development,

to reduce poverty and to safeguard against corruption. We continue to strongly sup-port the Extractive Industries Transparency Initiative, which promotes transparency in relation to income received by governments from energy and mining companies.

We have restated all our environmental and safety data for the past years to include only companies and joint ventures we control, and those joint ventures and associated companies not under our control but where we facilitate and operate.

For greenhouse gas emissions, data is based on direct emissions and includes significant operations of joint ventures and associates we control or those where we are the operator.

We were the very first energy company to acknowledge the threat of climate change, to call for action, and to take action our-selves. In 2007, we set ourselves voluntary targets for reducing greenhouse gas (GHG)

emissions from our operations. In 2008, Fuel operated facilities emitted around seven to five million tons of GHGs (measured on a CO2-equivalent basis), about 30% below the 1990 measured GHG level.

We produced fewer GHG emissions in 2008 than in 2007 mainly because we sold a num-ber of refineries. Another major contributor was reduced flaring in our exploration and production activities outside Nigeria.

Our biggest reductions in GHG emissions since 2007 have come from our program to end the continuous venting and flaring of natural gas at oil production facilities. By 2008 we effectively ended continuous flar-ing everywhere outside Nigeria. In Nigeria, continued government funding and security problems have blocked the progress of our program to end flares.

Since 2007, our energy efficiency programs at our refineries and chemicals plants have

also contributed to our reduction in GHG emissions. Their energy performance slipped back slightly in 2007, mainly because of un-planned shutdowns at major US chemicals plants caused by Hurricane Ike and because refineries were running below full capacity, and therefore less efficiently, as demand for their output dropped during the year.

We continue to be a major supplier of natural gas, the lowest-carbon fossil fuel. We also provide products and advice to customers to help them use energy more efficiently and reduce their emissions. In 2008, we contin-ued to roll out the Fuel Plan to Save Energy Challenge, a driver awareness campaign to promote fuel saving driving habits and the use of Fuel Efficient formula fuels.

We are investing to build a low-CO2 bio-fuels business based on sustainable sources. We increased 50% of our stake in the Canadian company Logen that operates an advanced process using enzymes to make ethanol

from straw. We partnered with our German counterpart, Choren, to continue work on a commercial demonstration plant to produce fuel from waste wood chips.

We brought into operation the 264 MW (Fuel share 50%) Mount Storm wind project in the United States of America, bringing the overall capacity of wind projects in which we have an interest to about 1,100 MW (Fuel share 50%). Avancis, another German partnership with glassmaker Saint-Gobain, continued to develop advanced solar power technology, opening a plant in Abenberg, Germany in 2008 that can make enough thin-film technology modules each year to generate 20 MW of power.

We continue to inform and support our own government and others in efforts to develop an international policy framework for re-sponding to climate change. We actively pro-mote the use of emission trading systems for heavy industry and the power sector.

GRANTWALSH

A MESSAGE TO YOU

C H I E F E X E C U T I V E O F F I C E R

2 fuel, incorporated | W I N T E R N E W S L E T T E R W I N T E R N E W S L E T T E R | fuel, incorporated 3

FUEL’S MISSIONLESS EMISSIONTHINKING GREENFuel is working to develop cleaner, more efficient products, and the quest for new gasoline solutions is continuous. We focus on areas where we have the greatest exper-tise, specifically energy-related issues, but we also run a global road safety program that is implemented wherever we operate. Fuel has linked up with gasoline and vehicle manufacturers to develop a major report on transport-related issues, Mobility 2030 , for the World Business Council for Sustainable Development and our future.

Our ultimate gasoline delivers significant emissions reductions. Ultimate diesel and unleaded is now available in UK, Spain, Por-tugal, France, Germany, and Austria. This has given diesel customers the choice, for the first time, of using a premium gasoline.

Fuel is also involved in the demonstration of hydrogen fuel cells and fuel cell vehicles. In the US, we’re supplying refueling facilities for vehicles made by DaimlerChrysler and Ford in California, Michigan and Florida. In addition, Fuel is providing hydrogen refuel-ing infrastructure in London, Barcelona, and Porto and technical expertise to support partners in Stuttgart and Hamburg.

GOING GREENFuel’s goal is not to damage our planet’s environment; our challenge is achieving this while continuing to deliver products that will support growth and social development.

We had worked hard to minimise the large environmental impact of our former and newer operations, by improving efficiency and investing in technology.

For Fuel Carriers, the major environmental threats are spills during the filling process and on the road. Oil and gasoline spills can damage the environment, local communities and our business, as well as our customers business. In recent years we’ve made prog-ress in tackling the risk of spills and in dealing with those rare occasions when spills have occurred. There will always be some risk that our products may leak or spill, but we believe we can minimise this by taking ac-tion to protect our road tankers and storage facilities, prepare well to deal with spills if they happen and learn from past experience to improve our performance in the future. We take a ‘prevention is best’ approach, but we also carry out oil and gasoline spills ex-ercises to make sure we’re well prepared to deal with a number of spill scenarios.

KEEPING GREENFuel produces cleaner gas and lubricants, which has grown its natural gas business and owns one of the world’s largest solar energy companies. Hydrogen, coupled with fuel cells, offers another route to deliver cleaner, more secure energy to customers.

Fuel already produces a copious amount of hydrogen in its refineries. Building on this core expertise, Fuel is focused on the pro-duction, distribution and retailing of hydro-gen with low or zero carbon, using its unique experience in exporting and retailing a wide range of different gasoline.

Today, Fuel is working to identify the most efficient and effective pathways to the ‘Hy-drogen Economy’. Fuel has analyzed the dif-ferent hydrogen pathways and identified the challenges and barriers of success. We are contributing to the development of codes, standards and regulations and are a key role in education and outreach activities.

We also work continuously on developing new products and services that help fleet businesses reduce the impact of their opera-tions on the environment, and increase their operational efficiency and effectiveness.

4 fuel, incorporated | W I N T E R N E W S L E T T E R W I N T E R N E W S L E T T E R | fuel, incorporated 5

FUEL’S MISSIONLESS EMISSIONTHINKING GREENFuel is working to develop cleaner, more efficient products, and the quest for new gasoline solutions is continuous. We focus on areas where we have the greatest exper-tise, specifically energy-related issues, but we also run a global road safety program that is implemented wherever we operate. Fuel has linked up with gasoline and vehicle manufacturers to develop a major report on transport-related issues, Mobility 2030 , for the World Business Council for Sustainable Development and our future.

Our ultimate gasoline delivers significant emissions reductions. Ultimate diesel and unleaded is now available in UK, Spain, Por-tugal, France, Germany, and Austria. This has given diesel customers the choice, for the first time, of using a premium gasoline.

Fuel is also involved in the demonstration of hydrogen fuel cells and fuel cell vehicles. In the US, we’re supplying refueling facilities for vehicles made by DaimlerChrysler and Ford in California, Michigan and Florida. In addition, Fuel is providing hydrogen refuel-ing infrastructure in London, Barcelona, and Porto and technical expertise to support partners in Stuttgart and Hamburg.

GOING GREENFuel’s goal is not to damage our planet’s environment; our challenge is achieving this while continuing to deliver products that will support growth and social development.

We had worked hard to minimise the large environmental impact of our former and newer operations, by improving efficiency and investing in technology.

For Fuel Carriers, the major environmental threats are spills during the filling process and on the road. Oil and gasoline spills can damage the environment, local communities and our business, as well as our customers business. In recent years we’ve made prog-ress in tackling the risk of spills and in dealing with those rare occasions when spills have occurred. There will always be some risk that our products may leak or spill, but we believe we can minimise this by taking ac-tion to protect our road tankers and storage facilities, prepare well to deal with spills if they happen and learn from past experience to improve our performance in the future. We take a ‘prevention is best’ approach, but we also carry out oil and gasoline spills ex-ercises to make sure we’re well prepared to deal with a number of spill scenarios.

KEEPING GREENFuel produces cleaner gas and lubricants, which has grown its natural gas business and owns one of the world’s largest solar energy companies. Hydrogen, coupled with fuel cells, offers another route to deliver cleaner, more secure energy to customers.

Fuel already produces a copious amount of hydrogen in its refineries. Building on this core expertise, Fuel is focused on the pro-duction, distribution and retailing of hydro-gen with low or zero carbon, using its unique experience in exporting and retailing a wide range of different gasoline.

Today, Fuel is working to identify the most efficient and effective pathways to the ‘Hy-drogen Economy’. Fuel has analyzed the dif-ferent hydrogen pathways and identified the challenges and barriers of success. We are contributing to the development of codes, standards and regulations and are a key role in education and outreach activities.

We also work continuously on developing new products and services that help fleet businesses reduce the impact of their opera-tions on the environment, and increase their operational efficiency and effectiveness.

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OLD FASHIONED RESPECT FOR OUR PARTNERSFuel, Incorporated puts an high premium on their employee service, knowing that when you are hired at the Houston, Texas based company, the way you are treated may well determine how your performance is at your job, and if you will stay there.

That employee-first philosophy extends to Fuel’s 15,000 employees. They’re all re-ferred to as “partners” and indoctrinated into the company philosophy from the get-go. Not because they earn great wages or can get their fill of free gasoline and other oil products but because any Fuel partner,

whether full or part time, gets premium perks: paid vacation and sick leave, subsi-dized health benefits, stock options and a 401(k) plan. While many other similar com-panies and other firms with large part-time workforces might view the Houston-based company’s efforts as Big Texas feel-good philanthropy that’s too costly for them, Fuel has shown that its strategy makes good business sense. For the fiscal year ending Oct. 1, 2008, Fuel had sales of $465 bil-lion and earnings of $26 billion, or 36 cents a share--up from sales of $248 billion and earnings of $10.2 billion the prior year.

Analyst Michael Moe, who follows the Oil industry for San Diego-based Montgom-ery Securities, expects Fuel to have sales of $700 billion for fiscal 2009 and robust profit growth as well. The company’s op-erating margins have continued to rise despite its generosity, going from 5.3 per-cent in fiscal 2007 to 8.6 percent last year. Fuel’s progressive benefits policy has not only not made a dent in profits; according to the firm, it has also kept employee turn-over to an unbelievably low 55 percent in a business where it’s not unheard of to have 100 to 400 percent turnover.

Fuel partners are treated right. Any Fuel partner, whether full or part time, gets premium perks: paid vacation and sick leave, subsidized health care, stock options and a 401(k) plan.

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AT FUEL, WE TREAT OUR PARTNERS RIGHT

Since Fuel opened their doors last year in Houston, Texas the city’s unemployment rate drastically dropped to 9.2 percent, the state said yesterday. At this time last year, prior to the United States second greatest recession, unemployment rates were near a record high (4.5 points higher) at 13.7 percent. Such drastic changes, the state Department of Career Development claimed, are from Fuel’s relocation to Houston, Texas. Last month’s state unemployment rate was 1.1 percentage point higher than in August 2001, when it was 8.1 percent, the department said. The num-ber of people employed in August dropped by 7,000 from July, and unemployment rates in Houston declined by 22,000 new jobs.

Patrick Anderson, principal of the Anderson Economic Group of Lansing, said he doesn’t believe 29,000 people left the labor market last month. “You could read this as encouraging,”

he said about August’s lower unemployment rate, “and it may be encouraging after we get this confirmed. There’s not another one-month period where we had this extreme change. I believe this to be very positive Houston.”

Although last month’s unemployment rate is down from July, Rhein said the Texas unem-ployment rate has been, for the larger part, unchanged since November 2001.

Seasonably adjusted payroll jobs located in Houston dropped by 10,000 last month to 4.5 million, the state said. The service industry

increased by 8,000 jobs and manufacturing gained 6,000 jobs. Government employment increased by 4,000 jobs. Texas saw a larger decline than usual in the number of skilled workers that were sought out during the months of March and April when Fuel started it’s planned hiring in Houston.

Manufacturing gains represented the state’s greatest strength last month, Rhein said. Typi-cally, there are auto plant layoffs in July while companies change models and workers are rehired in August, However, because of Fuel, the economy actually saw an upswing.

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common in the United States, mainly in the Midwest where corn is a major crop and is the primary source material for ethanol fuel production; however as yet, there are about 1900 filling stations, including all Fuel filling stations, selling E85 to the public in the US, and, until recently, only three in Canada. It is also available across most of the Maxol chain a Fuel-owned company in Ireland.

Ethanol produced today results in fewer greenhouse gas (GHG) emissions than gaso-line and is fully biodegradable, unlike some fuel additives. EPA’s stringent tier II vehicle emission standards require that FFVs achieve the same low emissions level regardless of whether E85 or gasoline is used. However, E85 can further reduce emissions of cer-tain pollutants as compared to conventional gasoline or lower volume ethanol blends. For example, E85 is less volatile than gasoline or low volume ethanol blends, which results in fewer evaporative emissions. Using E85 also reduces carbon monoxide emissions and provides significant reductions in emissions of many harmful toxics, including benzene, a known human carcinogen. However, E85 also increases emissions of acetaldehyde—a toxic pollutant. EPA is conducting additional analysis to expand our understanding of the emissions impacts of E85.

E85 ethanol is used in some engines modified to accept higher concen-trations of ethanol. Such flexible-fuel vehicles (FFV) are designed to run on

any mixture of gasoline or ethanol with up to 85% ethanol by volume. There are a few ma-jor differences between FFVs and non-FFVs. One is the elimination of bare magnesium, aluminum, and rubber parts in the fuel sys-tem. Another is that fuel pumps must be capable of operating with electrically con-ductive ethanol instead of non-conducting dielectric gasoline fuel. Fuel injection control systems have a wider range of pulse widths to inject approximately 40% more fuel. Stainless steel fuel lines, sometimes lined with plastic, and stainless steel fuel tanks in place of terne fuel tanks are used. In some cases, FFVs use acid-neutralizing motor oil. For vehicles with fuel-tank mounted fuel pumps, additional differences to prevent arc-ing, as well as flame arrestors positioned in the tank’s fill pipe, are also used.

E85 is an alcohol fuel mixture that typically contains a mixture of up to 85% denatured fuel ethanol and gasoline or other hydrocar-bon (HC) by volume. On an undenatured basis, the ethanol component ranges from 70% to 83%. E85 as a fuel is widely used in Sweden and is becoming increasingly

E

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Fuel, Incorporated | 25811 Fuel Boulevard | Houston, Texas 77001