Repsol YPF has completed an agreement signed July 13^th last with the Lipigas Group by which it acquires a 45% stake in the Group.  The deal was closed on November 2^nd in Santiago de Chile, for US$171 million, and is Repsol YPF�s largest operation in the LPG retail business in the Southern Cone.

The Lipigas Group has a 41% share in the Chilean LPG market, selling 400,000 Mt. per year.  It is made up of four distribution companies (Lipigas, Enagas, Codigas and Agrogas), with 13 bottling plants throughout the country.  Net income after tax in 1999 was US$34 million, with a turnover of US$219 million.

By becoming a shareholder in Lipigas, Repsol YPF takes a large step forward in the Chilean fuel distribution market.  The company will be jointly managed with the best current management resources, and with the incorporation of Repsol YPF management personnel.

This deal will allow Repsol YPF to enter the LPG market in Chile by integrating  production and marketing activities in Argentina and Chile respectively, making it possible to supply LPG demand in Chile with exports from Argentina, and guaranteeing production logistics for the Pacific markets for both the company itself and third parties.

Repsol YPF also has LPG operations in other Latin American countries.  In Argentina, it has a 38% market share, with sales of 385,000 tons per year, in Peru a 32% market share, with sales of 120,000 tons per year, and in Ecuador a 49% market share, with sales of 290,000 tons per year.