Marathon Oil (MRO)

•                  Increased Proved Reserve Base

•                  Added net proved reserves of approximately 221 million barrels of oil equivalent (mmboe)

•                  Strengthened Marathon Ashland Petroleum LLC (MAP) Assets

•                  Completed Catlettsburg, Kentucky, refinery repositioning project

•                  Increased crude oil capacity at Garyville, Louisiana, refinery

•                  Achieved record refinery crude and feedstock throughputs for fourth quarter and full-year

•                  Continued strong Speedway SuperAmerica same store merchandise sales gains

•                  Progressed Detroit refinery expansion – project on schedule for completion late 2005

•                  Advanced Integrated Gas Strategy

•                  Sanctioned Equatorial Guinea liquefied natural gas (LNG) project – Train I construction on schedule for first deliveries of LNG in late 2007

•                  Signed LNG supply agreement for Elba Island LNG regas terminal capacity rights

•                  Successfully completed operation of gas-to-liquids (GTL) demonstration plant

“Marathon’s strong fourth quarter and full-year 2004 earnings demonstrate the ongoing progress we are making in focusing and executing on key business strategies that are fueling profitable growth,” said Clarence P. Cazalot, Jr., Marathon president and CEO.  “2004 was marked by strong commodity prices, tight supplies of finished product due in part to constraints of the U.S. refining system, severe weather in the Gulf of Mexico, and an overall narrowing of the oil supply/demand balance in the face of growing worldwide demand for energy.  While we were challenged by these market factors, each of the company’s three business segments improved profitability over 2003.  In particular, MAP achieved its second best year since being formed in 1998, once again demonstrating the value of Marathon’s fully integrated strategy.”

Continued Strong Exploration Success

Marathon continued its successful exploration program with six discoveries during 2004 in Norway, Angola, the Gulf of Mexico and Equatorial Guinea.  These discoveries reflect the company’s balanced exploration strategy which places greater emphasis on near-term production and lower risk opportunities, while retaining an appropriate exposure to longer-term options.

In the fourth quarter, the company announced the Gardenia natural gas and condensate discovery on the Alba Block (Sub Area B) offshore Equatorial Guinea, approximately 11 miles southwest of the Alba field.  The well encountered 150 feet of net gas/condensate pay in the Upper Isongo section, which is also productive in the Alba field.  A 60 foot net pay interval was tested at a stabilized rate of 18.6 million cubic feet of gas and 1,300 barrels of condensate per day.  The company is evaluating development scenarios for Gardenia, one of which includes production through the Alba field infrastructure and the future LNG facility under construction on Bioko Island.  Marathon holds a 63 percent interest in Sub Area B and serves as operator.

Also in Equatorial Guinea, Marathon announced an offshore discovery on the Alba Block (Sub Area A).  The successful Deep Luba well, drilled from an Alba production platform, reinforces the additional resource potential of the Alba field in which Marathon holds a 63 percent interest.

In Norway, the company announced its Hamsun discovery located on production license (PL) 150 located approximately six miles south of the Alvheim area on the Norwegian Continental Shelf.  Hamsun well results are being analyzed and possible development scenarios are being examined including a possible tie-back to

2

the Alvheim development.  Marathon holds a 65 percent interest in Hamsun and serves as operator.  In addition, Marathon acquired four new Norwegian exploration licenses (three operated) in the December 2004 APA License Round.

Offshore Angola, Marathon participated in two deepwater discoveries on Blocks 31 and 32.  The Venus-1 discovery represented the company’s fourth successful well on Block 31.  This discovery, along with the three previously announced discoveries on Block 31, form the basis for a planned development of the Northeast Development Area.  In addition, Marathon participated in a well on the Palas prospect in the southern portion of Block 31.  The Palas-1 well has reached total depth and results will be announced upon government approval.  Also, in the central portion of Block 31, operations are ongoing on the Ceres prospect.  Marathon holds a 10 percent interest in Block 31.

On Angola Block 32, Marathon participated in the Canela-1 discovery, the second discovery on this block.  In addition, a well on the Cola prospect has reached total depth and encountered hydrocarbons, but additional work will be required to determine commerciality.  Lastly, a well on the Gengibre prospect has reached total depth and results will be announced following government approval.  Marathon holds a 30 percent interest in Block 32.

In the Gulf of Mexico, Marathon and its partners in the Neptune Unit announced the results of the Neptune-7 appraisal well which, along with data from other Neptune wells, is being used to assess development options for the field.  Front End Engineering and Design (FEED) for a Neptune development is anticipated to result in project sanction around mid-year 2005.  Marathon holds a 30 percent interest in the Neptune Unit.