Valero Energy Corporation to Sell Krotz Springs Refinery

San Antonio, TX - (WORLD STOCK WIRE) - May 8, 2008 -- Valero Energy Corporation (NYSE: VLO) announced today that it has agreed to sell its 85,000 barrel-per-day refinery in Krotz Springs, Louisiana to Alon USA Energy Inc. (NYSE: ALJ), for $333 million plus an earn-out provision currently valued in excess of $100 million. Both companies' boards of directors have approved the transaction, and the sale is expected to close in July 2008, subject to regulatory approvals. The transaction will also include working capital at the refinery, which will be valued at market prices at closing.

"The Krotz Springs refinery is a good fit for Alon, and this transaction is a good deal for Valero's stockholders," said Bill Klesse, Valero's Chairman and Chief Executive Officer. "This transaction is consistent with our strategy to concentrate on our core refineries where we see higher returns for the long run. Alon is a high-quality company that will benefit the great group of dedicated employees at this refinery as well as the community of Krotz Springs."

Valero had announced earlier this year that it would explore strategic alternatives for the Krotz Springs refinery. It is also exploring options for its refineries in Aruba, Memphis, Tennessee and Ardmore, Oklahoma. J.P. Morgan Securities Inc. acted as exclusive financial adviser to Valero on this transaction.

About Valero Energy Corporation

Valero Energy Corporation is a Fortune 500 company based in San Antonio, with approximately 22,000 employees and 2007 annual revenues of $95 billion. The company owns and operates 17 refineries throughout the United States, Canada and the Caribbean with a combined throughput capacity of approximately 3.1 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 website at www.valero.com.



Bill Greehey, CEO
Valero Energy Corp
One Valero Way
San Antonio, TX 78249
USA

Phone: (210) 345-2000


Source: Valero Energy Corp
Note: The following press release was submitted by: Valero Energy Corp, and World Stock Wire, Inc. is not liable for the contents of this press release.