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Valero Completes Sale of Krotz Springs Refinery

July 7, 2008

Valero Energy Corporation (NYSE: VLO) announced today that it has completed the sale of its Krotz Springs, Louisiana refinery to Alon USA Energy Inc. (NYSE: ALJ) to be effective for financial reporting purposes July 1.

Valero received $333 million plus $143 million as part of an initial payment toward working capital, which will be settled with a final adjustment payment within 90 days of closing. Valero also received an earn-out provision, which the company has hedged to lock-in a value of approximately $200 million.

Valero had announced earlier this year that it would explore strategic alternatives for the Krotz Springs refinery. JPMorgan served as financial advisor to Valero in this transaction.

About Valero Energy Corporation

Valero Energy Corporation is a Fortune 500 company based in San Antonio, with more than 22,000 employees and 2007 revenues of more than $95 billion. The company owns and operates 16 refineries throughout the United States, Canada and the Caribbean with a combined throughput capacity of approximately 3 million barrels per day, making it the largest refiner in North America. Valero is also one of the nation’s largest retail operators with approximately 5,800 retail and branded wholesale outlets in the United States, Canada and the Caribbean under various brand names including Valero, Diamond Shamrock, Shamrock, Ultramar, and Beacon. Please visit www.valero.com for more information.

Statements contained in this release that state the company’s or management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “believe,”"expect,”"should,”"estimates,” and other similar expressions identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual reports on Form 10-K and quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission and on Valero’s web site at www.valero.com.




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