Elements Newsletter

Chevron Phillips Chemical Profit Sharing Plan Payout and Variable Annuity Benefit Enhancement — What a Great Year!

Chevron Phillips Chemical is pleased and proud to announce that it has awarded its employees with a 7% Profit Sharing payout, and a 10% Variable Annuity Benefit enhancement for 2006.

We believe that these benefits are a very important part of your overall compensation package and have provided Q&As on www.benefitium.com to help you better understand these benefits. These profit sharing enhancements are applicable to all participating Chevron Phillips Chemical employees (other than Chevron Phillips Puerto Rico Core employees); salaried Performance Pipe employees; and Performance Pipe employees paid on an hourly basis at Reno and Knoxville hired prior to January 1, 2004.

Profit Sharing contributions will vary from year to year depending upon Chevron Phillips Chemical’s performance and its ability to support additional contributions, based on that performance. There may be years in which there is no profit sharing match.

The following chart shows the basic Chevron Phillips Chemical employer match plus the 7% Profit Sharing contribution scenarios for the 2006 plan year.

If you are a participant in the 401(k) Plan, the Profit Sharing payout was posted to your 401(k) account the third week of March. The Variable Annuity Enhancement will be posted to your retirement account sometime during the second quarter. We’ll keep you posted on the exact date.

Interested in estimating your benefit now? You can receive an estimate of your Chevron Phillips Chemical retirement benefit by logging onto the Fidelity NetBenefits Web site at http://netbenefits.401k.com/. You will be able to log in to your account and receive estimates based on different retirement scenarios you input (such as retirement date, salary projection, etc.), review frequently asked questions and request forms.

And don’t forget! You can view your 401(k) balances, process transactions — such as loans and withdrawals — and make 401(k) investment election and deferral changes. You can contact Fidelity directly by calling the Chevron Phillips Chemical Pension and Savings Service Center at 1-866-771-5225.

Congratulations on another successful year, keep up the good work!

Resources for a Healthy Retirement

You’re not going to work forever. So even if retirement seems like a long way off, CPChem wants to help you get prepared. And, because earnings on your investments can dramatically compound over time, the sooner you start, the less you’ll have to save for a healthy retirement. One important benefit that can help you save is CPChem’s 401(k) Savings and Profit Sharing Plan.

The 401(k) Savings and Profit Sharing Plan

The 401(k) Savings and Profit Sharing Plan allows you to set aside up to 40% of your eligible income* on a pre-tax basis through payroll deductions. As an added savings incentive, CPChem contributes $.75 for every $1.00 you make in 401(k) pre-tax contributions, up to the first 6% of your eligible pay. That’s almost doubling your savings!

And the profit sharing feature of the plan allows you to share in Chevron Phillip’s success. Based on company performance, profit sharing contributions can range from no contribution to $1 for each $1 of eligible earnings you contributed to the 401(k) Plan during the year on a pre-tax basis, up to 8% of your eligible earnings.

You can make your Retirement and Savings Program elections or view your account by logging on to Fidelity’s NetBenefits Web site at www.401k.com or by calling the CPChem Pension & Savings Center at (866) 771-5225.

Fidelity’s Portfolio Review Tool is Available to All Plan Participants

Have you ever wondered how much money you need to save for retirement? Or wished you could get help when choosing your Savings Plan investment options? Fidelity’s Portfolio Review tool can help! By combining user-friendly interfaces with Fidelity’s goal-planning technology, Fidelity Portfolio Review tool can help you assess your current investment strategy and plan for a variety of personal savings needs.

Accessible through www.netbenefits.fidelity.com at virtually any time of the day or night, Fidelity’s interactive tool makes it possible to:

• create a saving strategy for reaching your financial goals — including saving for a comfortable retirement, college funding, a new home purchase, elder care or any large expenditure;
• explore “what if” adjustments to help you evaluate how savings and investing trade-off decisions among different goals may affect your likelihood of reaching them; and
• generate investment strategies for all account types — including model portfolios for your Savings Plan account and detailed asset allocation strategies for any of your personal investment accounts.

To get started, log on to www.netbenefits.fidelity.com, click on “Savings and Retirement”, “Portfolio Analysis,” then “Portfolio Review” in the callout box entitled “Why is this important.” And while you’re on NetBenefits, take a moment to look at some of the other tools that are available to help you plan for your retirement.

Preventive Care — Why is it Important?

You’ve heard it before — if you adopt a healthier lifestyle, you are less likely to develop the expensive, chronic diseases that may risk your life and raise your health costs sharply. Although there was never a truer statement — quite frankly, staying healthy and fit seems easier said than done. But it doesn’t have to be hard. Preventive care is the easiest and most effective way to keep yourself and your family healthy and happy. Here’s how!

Recommended Immunization Schedule for Children and Teens

The vaccinations recommended for a child’s first few years of life provide lifelong protection against deadly childhood diseases such as polio, measles, mumps, rubella, and other infections.

The following is a childhood and adolescent immunization schedule, which has been recommended by the American Academy of Pediatrics (AAP) and the American Academy of Family Physicians (AAFP).

Please note that this schedule may vary depending upon where you live, your child's health, the type of vaccine, and the vaccines available. It is strongly recommended that you ask your child’s doctor about the vaccines your child should receive.

Preventive Guidelines for Adults Age 18 and Older

Going to the doctor for preventive tests can seem like a pain, especially if you’re feeling well. But if you are proactive about your health, many of the most common diseases can be caught early and treated successfully.

The following is a recommended “preventive maintenance” schedule for adults. Please note that this schedule may vary depending on your health and lifestyle. It’s strongly recommended that you ask your doctor about the tests and vaccines you should receive to ensure your long-term health.

Quest Diagnostics to Become National Preferred Provider of Laboratory Services

In an effort to proactively manage health care costs, while continuing to offer excellent access to lab services, Aetna is making a change to the national lab network contract. They have negotiated more competitive lab costs while ensuring your access to services is maintained, as part of a new agreement with Quest Diagnostics. Quest is the nation’s leading provider of diagnostic testing, information and services.

Quest will be the preferred provider of lab services for all products, effective July 1, 2007. This change will also mean LabCorp will no longer be an in-network provider or paid as an in-network provider, effective July 1, 2007.

Agreement Provides Cost-Effective Services, Extensive Access

As Aetna’s preferred provider, Quest will offer an improved laboratory cost structure to its members and their physicians. Its network is well positioned to serve all members’ needs:

• Size. Quest offers an extensive nationwide network of testing sites, with more than 2,000 patient service centers, approximately 150 rapid response laboratories, 30-plus regional laboratories and esoteric (specialized) testing laboratories on both coasts.
• Physician Use. The majority of our participating primary care physicians already have selected Quest to provide laboratory testing services for their Aetna patients.
• Convenient Sites. Aetna has carefully analyzed sites where its members use LabCorp facilities today; 97.5 percent of these sites have at least two Quest or local participating facilities within 5 miles of the LabCorp site. This means the change can be made with very little disruption.
• Network Growth. Aetna and Quest have identified markets that would benefit from additional sites. They will contract with additional local laboratories in these markets as needed.

Important Dates