/ PRA Fund Descriptions / December 2002

You may invest Oxy's contributions to your PRA among the four investment Funds described below. Trustee and investment management fees under each Fund are netted out of that Fund’s earnings.

Fund Name
Risk/Return Characteristics / Type of Fund / Fund Manager
Stable Value Fund
Conservative / Individually Managed for PRA
Ticker Symbol: None / ·  INVESCO
Louisville, KY
Balanced Strategy I – Conservative / Each fund invests among a predetermined mixture of Russell’s actively managed funds (see descriptions below).
Ticker Symbol: None / ·  Frank Russell Trust Company Tacoma, WA
Balanced Strategy II – Moderate
Balanced Strategy III – Aggressive

PRA Fund Performance Comparisons

Annualized past Fund performance information and the annualized market value of $100 invested each month in each of the PRA’s investment Funds over the past 1, 3 and 5-year periods ending December 31 are contained in a separate publication entitled PSA/PRA Fund Performance—A Comparison of Your Investment Options in the PSA and PRA. This publication is distributed to all PRA participants annually. You may view this publication at oxylink.oxy.com (select Enterprise Menu > Forms, Publications & Info > Retirement & Savings > PSA/PRA Fund Comparison Chart), or you may request a printed copy by sending an e-mail request to or by calling OxyLink at 800-699-6903 (or 918-610-1990 from outside the U.S. or Canada) during normal business hours (Monday – Friday, 8:30 A.M. – 5:00 P.M. Central Time).

You may also access current and historical PRA Fund rates of return by accessing your plan balances at oxylink.oxy.com (enter your User ID and password, then select Employee Self-Service > Access PSA/PRA Information > Historic or Current Rates of Return).

Making Your Personal Investment Choices

It is up to you to decide how to invest Oxy's contributions to your PRA. All investments involve the risk of loss as well as the potential of gain. Please remember that historic performance does not necessarily indicate the future performance of any PRA investment Fund. Performance depends on a number of variables, including the performance of other companies and markets in which investments are made and the actual time frame of your investment.

Oxy does not guarantee the performance of any PRA Fund nor does it assume any obligation to make up for any losses that you may experience. You may want to consult an independent investment advisor regarding the PRA investment options that are best suited to help you achieve your personal investment goals.

Shown below are individual descriptions of each PRA investment option.

Stable Value Fund

This conservative risk Fund is designed to provide stable, predictable returns. Your contributions are invested in stable value investment contracts (SVCs) which guarantee an interest rate and the repayment of principal. It is important to note that the SVCs are not guaranteed by the federal government or by Oxy. The guarantee is based solely on the ability of the contract providers to fulfill their obligations under these contracts. As a participant in this Fund, you will earn a “blended” interest rate that reflects the combined earnings for all SVCs held under the Fund.

INVESCO of Louisville, Kentucky individually manages this Fund on behalf of the PRA. An individual prospectus is not published for this Fund.

Balanced Strategy I – Conservative

This Fund is an income-oriented investment option that seeks to provide the potential for a modest, long-term rate of return at a moderate level of risk by emphasizing preservation of principal. This premixed, diversified Fund invests in the following asset classes:

Short-term Bonds 30%

Bonds 30%

Large Cap Stocks 30%

Small Cap Stocks 5%

International Stocks 5%

The Fund, which is currently managed by Frank Russell Trust Company of Tacoma, Washington, a division of Frank Russell Company, is invested in Russell’s actively managed funds, which are highly diversified and employ multiple managers with different investment styles. A prospectus is not published for this Fund.

Balanced Strategy II – Moderate

This Fund is a growth and income-oriented investment option that seeks to provide the potential of moderate, long-term returns with an accompanying moderate to high level of risk by balancing return potential with preservation of principal. This premixed, diversified Fund invests in the following asset classes:

Short-Term Bonds 10%

Bonds 30%

Large Cap Stocks 40%

Small Cap Stocks 10%

International Stocks 10%

The Fund, which is currently managed by Frank Russell Trust Company of Tacoma, Washington, a division of Frank Russell Company, is invested in Russell’s actively managed funds, which are highly diversified and employ multiple managers with different investment styles. A prospectus is not published for this Fund.

Balanced Strategy III – Aggressive

This Fund is a growth-oriented investment option that seeks to provide the potential of significant long-term returns with an accompanying high level of risk by optimizing return potential. This premixed, diversified Fund invests in the following asset classes:

Bonds 30%

Large Cap Stocks 40%

Small Cap Stocks 15%

International Stocks 15%

The Fund, which is currently managed by Frank Russell Trust Company of Tacoma, Washington, a division of Frank Russell Company, is invested in Russell’s actively managed funds, which are highly diversified and employ multiple managers with different investment styles. A prospectus is not published for this Fund.

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