24/05/2003

“As the uncertainty surrounding climate change and corresponding greenhouse gas emissions continues to be a significant concern for investors and corporations, we believe that the report on economic risks and benefits will help shareholders better assess such financial risk.”

This was the comment from ISS, one of the largest shareholder advisory services in the USA, in support of two resolutions against the company at this week's shareholder meeting, on Wednesday.

FULL PRESS RELEASE FROM CAMPAIGNEXXONMOBIL

ISS RECOMMENDATION, IRRC REPORT SEEN AS MAJOR BOOSTS FOR GLOBAL WARMING RESOLUTIONS AT EXXONMOBIL

Two Key Advisory Firms Define Resolutions
As Financial Risk Disclosure Issue Two Weeks Before May 28th Votes

AUSTIN, TEXAS///May 15, 2003///The two most powerful institutional shareholder evaluation services in America ­ Institutional Shareholder Services (ISS) and the Investor Responsibility Research Center ­ have released key analyses that are seen as adding to the pressure on ExxonMobil (NYSE: XOM) shareholders to support global-warming resolutions at the company's May 28, 2003 annual meeting in Irving, Texas.

In recommending a “yes” vote on two of the climate-related resolutions now facing ExxonMobil, ISS noted that “As the uncertainty surrounding climate change and corresponding greenhouse gas emissions continues to be a significant concern for investors and corporations, we believe that the report on economic risks and benefits will help shareholders better assess such financial risk.”

As such, ISS is recommending again that shareholders support the renewable energy resolution (#15 on the proxy card) and the new climate change resolution (#14 on the proxy card). Out of 12 shareholder resolutions pending in 2003 at ExxonMobil, only the two climate-related resolutions and a separate sexual orientation resolution earned the support of ISS.

ExxonMobil shareholder resolution supporters also have been encouraged by a new proxy analysis by IRRC. Although the Center does not issue recommendations on shareholder voting issues, how it interprets and frames the underlying issues in such votes is very important. IRRC sees the resolutions as a disclosure issue, noting that: "Shareholders that believe management should be disclosing more information on how the company will mitigate the risks of climate change and broaden its energy development horizons will be inclined to vote for the resolution."

Campaign ExxonMobil National Coordinator Peter Altman said: “Investors are increasingly recognizing that ExxonMobil faces real risks associated with climate change and renewable energy, but the company hasn¹t explained how it will manage those risks. This is purely a financial reporting issue for the company and its investors.”

Mindy Lubber, Executive Director of CERES, a coalition of investors, environmental organizations and public interest groups, said: “Every major sector of the economy is exposed to the risks of climate change, but the oil sector, with its carbon-intensive product and unusually long capital horizons, is particularly vulnerable. Exxon's failure to acknowledge this reality and take on this challenge is manifestly devastating for the environment, damaging for the long-term value of the company, and represents a failure by the board to exercise proper governance of the company.”

In 2002, frustrated by ExxonMobil¹s lack of disclosure on the risks and new business opportunities associated with climate change, shareholders representing over $55 billion in ExxonMobil stock (20.3 percent of those voting) supported a resolution seeking greater disclosure of the company's plans for renewable energy.

Even before the ISS and IRRC actions were taken, pressure was building on ExxonMobil shareholders to support the three key climate-related proxy resolutions. Earlier this week, Campaign ExxonMobil and CERES released on May 13, 2003 a 29-page report from London-based Claros Consulting entitled ”Sleeping Tiger, Hidden Liabilities: Amidst Growing Risk and Industry Movement, ExxonMobil Stays Still.” The report concluded that ExxonMobil is now alone among the four “supermajor” oil companies in refusing to take meaningful action to mitigate the growing risks posed by global warming.

The Claros study also points out that a host of global warming events and trends converging over the last year have “significantly increased” the climate-related risks to the wealth of ExxonMobil shareholders.

In addition, Campaign ExxonMobil is running an ad in Pensions and Investments to raise awareness about the vote and has a major proxy solicitation out with a cover letter from Connecticut Treasurer Denise Nappier.

The relevant resolutions that will be voted on by ExxonMobil shareholders on May 28, 2003 are as follows:

· FOR the resolution calling for a report on the risks presented by climate change and how ExxonMobil will mitigate those risks (Item 14 on the Proxy Card);

· FOR the resolution calling for a report on how the company will respond to the regulatory, competitive, and public pressure to develop renewable energy (Item 15 on the Proxy Card);

· FOR the resolution calling for the Board to create greater balance on the board by separating the roles of Chairman and Chief Executive Officer (Item 9 on the Proxy Card; filed by corporate governance activist Robert A.G. Monks)

Campaign ExxonMobil is a shareholder campaign to convince ExxonMobil to take a responsible position on climate change. Campaign ExxonMobil was founded by faith and environmental groups and works with institutional investors, corporate governance activists and financial analysts to highlight the financial risks to shareholders of ExxonMobil's current position.

For more information, visit Campaign ExxonMobil.

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