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Solid Strategy, Confident Execution Morgan Stanley Global Chemical Conference February 13, 2003 Dan Smith President an

Safe Harbor Language. Statements in this presentation relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are just predictions or expectations and are subject to risks and uncertainties. Actual results could differ materially, based on

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Solid Strategy, Confident Execution Morgan Stanley Global Chemical Conference February 13, 2003 Dan Smith President an

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    1. Solid Strategy, Confident Execution Morgan Stanley Global Chemical Conference February 13, 2003 Dan Smith President and CEO

    2. Safe Harbor Language

    3. Company Overview

    4. Lyondell Has Built a Balanced Portfolio

    5. The Recent Years Have Been a Period of Optimization Mid 1990’s Formation years LCR Contract and JV Equistar JV IC&D Acquisition 1999-2002 Position and Optimize Portfolio Adjustments Capacity Rationalization Project Reorientation Organization Effectiveness Best practices Organization design

    6. A Firm Foundation Has Been Established Portfolio Adjustments Capacity Rationalization Project Reorientation Organization Effectiveness $2.5B Revenue Divestitures - Specialties, polyols Acquisitions - Oxy transaction 2Blbs of Capacity Olefins, Polyethylene Reinitiate : IC&D projects Cancel/Delay : Equistar projects Infrastructure Enhanced Synergies - $300MM

    7. Processes and Systems Have Steadily Improved the Capital Utilization Within the Enterprise

    8. A Snapshot of Operating Metrics Highlights the Success

    9. A Brief Portfolio Review IC&D LCR Equistar

    10. Our Propylene Oxide and Derivatives Business (IC&D) Benefits from a Strong Position and a Stable Industry Structure

    11. PO Technology is Entering its Third Generation of Innovation

    12. LCR Important Cash Generator

    13. Equistar is a Leading Ethylene Producer #2 in North America #3 in world Leader in industry consolidation Competitive position based on feedstock flexibility

    14. Commodity Exposure Drives Cash Flow

    15. Significant Cash and Earnings Generation in Up-Cycle

    16. N. American Supply/Demand Imbalance is Differential to Global Situation

    17. Effective Ethylene Operating Rates Move Toward 95% Early in 2003 Chevron/Phillips (650 Mn) +#22 down as of Q1 2002 staying down thru 2003 Equistar(800 Mn) down as of Q1 2002 staying down Huntsman Pt Neches (500 Mn)down Q1 2002 staying down down thru 2003 Exxon Mobil(755 Mn) down Q4 2002 staying down through 2003-A problem for LCR !! ( therefore,I did not add this to the outages but took it out of “Unplanned”) Dow Seadrift (100% of 975) down in Q4 2003- shutdown--based on capability to find C=C Dow Texas City (100% of 1500) down in Q4 2003- shutdown--based on capability finding C=C Add 2% unassigned shutdown equal to 100 Mn lBs/Mo All these are collected in the blue marble shaded “Shutdown” area and have been extracted from “Turnarounds” and “Unplanned” Chevron/Phillips (650 Mn) +#22 down as of Q1 2002 staying down thru 2003 Equistar(800 Mn) down as of Q1 2002 staying down Huntsman Pt Neches (500 Mn)down Q1 2002 staying down down thru 2003 Exxon Mobil(755 Mn) down Q4 2002 staying down through 2003-A problem for LCR !! ( therefore,I did not add this to the outages but took it out of “Unplanned”) Dow Seadrift (100% of 975) down in Q4 2003- shutdown--based on capability to find C=C Dow Texas City (100% of 1500) down in Q4 2003- shutdown--based on capability finding C=C Add 2% unassigned shutdown equal to 100 Mn lBs/Mo All these are collected in the blue marble shaded “Shutdown” area and have been extracted from “Turnarounds” and “Unplanned”

    21. Asia is the Most Economic Destination for Middle East Ethylene Derivatives

    22. As Such, Asia is the Natural Market for Middle East Production

    23. Success in Asia Demands a Strategy That Addresses the Region’s Diverse Characteristics Distance between markets Wide ranging economic/political/social climates Many producer and varying motivations Hydrocarbon resources

    24. Our Core Beliefs Guide Our Approach to the Asian Market PO Chain: Current presence: US and European Export Nihon Oxirane JV C2= Chain: Not differential

    25. Our Financial Strategy is Unchanged Maintain Sufficient Liquidity Repay Debt

    26. We Have Maintained Significant Liquidity

    27. Cash Flow Has Supported the Interest and Dividend Requirements

    28. We Have Actively Managed Our Maturity Profile

    29. De-leveraging Will Benefit All Stakeholders Impact of Lyondell debt reduction at constant capitalization1: Debt Reduction $1B $2B Debt to capitalization 54% 36% Avoided interest expense $100MM/Yr $200MM/Yr Earnings improvement 40¢/share 80¢/share Share price improvement at constant capitalization $6/share $12/share

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