El Paso Corporation Announces Pricing and Increase of Pending Cash Tender Offer

HOUSTON, March 9 /PRNewswire-FirstCall/ -- El Paso Corporation ("El Paso" or the "Company") announced today that it has determined the consideration to be paid in connection with its pending cash tender offer to purchase any and all of the four series of notes listed in the table below (the "Any and All Offer"). The Any and All Offer is subject to the terms and conditions set forth in El Paso's Offer to Purchase dated February 23, 2007 (the "Offer to Purchase").

Holders who validly tendered (and did not validly withdraw) notes in the Any and All Offer at or prior to 5:00 p.m., New York City time, on March 8, 2007 will receive the Full Tender Offer Consideration listed in the table below, which amount includes an Early Tender Premium of $20.00 per $1,000 principal amount of notes tendered, and will also receive any accrued and unpaid interest from the last interest payment date for the notes to, but not including, the initial settlement date, which El Paso expects will occur today, March 9, 2007.

Principal Principal Full Tender Title of CUSIP Amount Amount Offer Security Number Outstanding Tendered(1) Consideration(2) 7.625% Senior Notes due August 16, 2007 28336LAH2 $272,102,000 $229,020,000 $1,009.01 6.750% Notes due October 1, 2007 835415AF7 $75,172,000 $49,215,000 $1,006.62 6.950% Medium Term Notes due December 15, 2007 28368EAC0 $300,000,000 $203,752,000 $1,011.01 7.625% Senior Notes due September 1, 2008 28336LAR0 $215,000,000 $145,102,000 $1,033.78 190441BF1 (1) As of 5:00 p.m., New York City time, on March 8, 2007. (2) Per $1,000 principal amount of notes. Includes an Early Tender Premium of $20.00 per $1,000 principal amount of notes.

Holders who validly tender notes in the Any and All Offer after 5:00 p.m., New York City time, on March 8, 2007 and at or prior to 12:00 midnight, New York City time, on March 22, 2007 will receive the Full Tender Offer Consideration listed in the table above minus the Early Tender Premium of $20.00 per $1,000 principal amount of notes tendered, which is referred to in the Offer to Purchase as the "Late Tender Offer Consideration," and will also receive any accrued and unpaid interest from the last interest payment date for the notes to, but not including, the final settlement date, which El Paso expects will occur on March 23, 2007.

The consideration to be paid in connection with the Any and All Offer was determined by Citigroup Global Markets Inc., Goldman, Sachs & Co. and Merrill Lynch, Pierce, Fenner & Smith, Incorporated, the lead dealer managers for the tender offer, as of 2:00 p.m., New York City time, on March 8, 2007, as set forth in the Offer to Purchase.

El Paso also announced that it had increased the aggregate principal amount of certain series of notes that it is offering to purchase in its pending cash tender offer to purchase up to the applicable principal purchase amount of the 17 series of notes listed in the table below (the "Maximum Tender Offer"). The following table shows the principal amount of each series of notes that El Paso is offering to purchase in the Maximum Tender Offer and the amount of notes tendered as of 5:00 p.m., New York City time, on Thursday, March 8, 2007. The Maximum Tender Offer is subject to the terms and conditions set forth in the Offer to Purchase.

Initial Revised Principal Principal Principal Principal Title of CUSIP Amount Purchase Purchase Amount Security Number Outstanding Amount Amount Tendered(1) 6.625% Notes due Feb. 1, 2008 835415AG5 $100,000,000 $5,000,000 $47,878,000 $47,878,000 6.500% Senior Notes due June 1, 2008 28336LAP4 $200,000,000 $10,000,000 $61,842,000 $61,842,000 U53248AE7 190441AV7 6.375% Senior Notes due Feb. 1, 2009 28336LAT6 $200,000,000 $60,000,000 $88,266,000 $88,266,000 190441AX3 6.750% Senior Notes due May 15, 2009 283905AA5 $495,000,000 $165,000,000 $165,000,000 $81,124,000 7.750% Senior Notes due June 15, 2010 28336LAV1 $400,000,000 $120,000,000 $251,048,000 $251,048,000 190441BC8 10.750% Senior Notes due Oct. 1, 2010 28336LAX7 $56,573,000 $56,573,000 $56,573,000 $23,634,000 190441AK1 7.000% Senior Notes due May 15, 2011 28336LAB5 $470,000,000 $100,000,000 $272,924,000 $272,924,000 7.625% Notes due July 15, 2011 835415AJ9 $595,000,000 $150,000,000 $235,815,000 $235,815,000 9.625% Senior Notes due May 15, 2012 28336LAZ2 $150,000,000 $40,000,000 $93,796,000 $93,796,000 190441AP0 7.875% Notes due June 15, 2012 28336LAE9 $465,000,000 $111,153,000 $216,156,000 $216,156,000 28336LAD1 7.375% Medium Term Notes due Dec. 15, 2012 28368EAB2 $300,000,000 $45,000,000 $147,112,000 $147,112,000 7.000% Notes due Feb. 1, 2018 835415AH3 $100,000,000 $10,000,000 $17,751,000 $17,751,000 6.950% Senior Notes due June 1, 2028 28336LBD0 $200,000,000 $20,000,000 $25,480,000 $25,480,000 190441AW5 8.050% Medium Term Notes due Oct. 15, 2030 28368EAA4 $300,000,000 $30,000,000 $30,000,000 $12,308,000 7.800% Medium Term Notes due Aug. 1, 2031 28368EAD8 $700,000,000 $70,000,000 $118,716,000 $118,716,000 7.750% Medium Term Notes due Jan. 15, 2032 28368EAE6 $1,249,275,000 $125,000,000 $213,898,000 $213,898,000 7.420% Senior Notes due Feb. 15, 2037 28336LBH1 $200,000,000 $20,000,000 $39,521,000 $39,521,000 190441AT2 (1) As of 5:00 p.m., New York City time, on March 8, 2007.

Holders who validly tendered (and did not validly withdraw) notes in the Maximum Tender Offer at or prior to 5:00 p.m., New York City time, on March 8, 2007 will receive the applicable Full Tender Offer Consideration identified in the Offer to Purchase, which amount includes an Early Tender Premium of $20.00 per $1,000 principal amount of notes tendered. Holders who validly tender notes in the Maximum Tender Offer after 5:00 p.m., New York City time, on March 8, 2007 and at or prior to 12:00 midnight, New York City time, on March 22, 2007 will receive the applicable Full Tender Offer Consideration identified in the Offer to Purchase minus the Early Tender Premium of $20.00 per $1,000 principal amount of notes tendered, which is referred to in the Offer to Purchase as the "Late Tender Offer Consideration." Holders whose notes are accepted for purchase in the Maximum Tender Offer will also receive any accrued and unpaid interest from the last interest payment date for the notes to, but not including, the final settlement date, which El Paso expects will occur on March 23, 2007.

El Paso may further increase the Principal Purchase Amount for any or all series of notes subject to the Maximum Tender Offer (in which case, the term "Principal Purchase Amount" shall mean such amount as so increased with respect to such series of notes) subject to and in accordance with applicable law, provided that the aggregate principal amount of the notes purchased in the Maximum Tender Offer shall not exceed $2.5 billion. If the aggregate principal amount of notes of any series validly tendered in the Maximum Tender Offer exceeds the applicable Principal Purchase Amount for such series, the Company will accept notes of such series for purchase on a pro rata basis.

The tender offers are conditioned on the satisfaction of certain conditions. If any of the conditions are not satisfied, El Paso is not obligated to accept for payment, purchase or pay for, and may delay the acceptance for payment of, any tendered notes, in each event, subject to applicable law, and may terminate the tender offers. Holders should consult the Offer to Purchase and related materials in their entirety for a full description of the terms and conditions of the tender offers.

El Paso has retained Citigroup Corporate and Investment Banking, Goldman, Sachs & Co. and Merrill Lynch, Pierce, Fenner & Smith Incorporated to serve as lead dealer managers for the tender offers and has retained Global Bondholder Services Corporation to serve as the depositary and information agent for the tender offers.

Requests for documents may be directed to Global Bondholder Services Corporation by telephone at (866) 952-2200 or (212) 430-3774 or in writing at 65 Broadway - Suite 723, New York, NY, 10006. Questions regarding the tender offers may be directed to either Citigroup Corporate and Investment Banking at (800) 558-3745 or (212) 723-6106, Goldman, Sachs & Co. at (877) 686-5059 or (212) 357-0775, or Merrill Lynch, Pierce, Fenner & Smith Incorporated at (888) 654-8637 or (212) 449-4914.

This press release is neither an offer to purchase nor a solicitation of an offer to sell the notes or any other securities. The tender offers are made only by and pursuant to the terms of the Offer to Purchase and the related Letter of Transmittal. None of El Paso, the dealer managers or the depositary and information agent makes any recommendations as to whether holders should tender their notes pursuant to the tender offers. Holders must make their own decisions as to whether to tender notes, and, if so, the principal amount of notes to tender.

El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner. El Paso owns North America's largest natural gas pipeline system and one of North America's largest independent natural gas producers. For more information, visit http://www.elpaso.com/ .

Cautionary Statement Regarding Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are based on assumptions that the Company believes to be reasonable. However, actual results almost always vary from assumed facts and the differences can be material, depending upon the circumstances. As a result, you should not place undue reliance on such forward-looking statements. The words "believe," "expect," "estimate," "anticipate" and similar expressions will generally identify forward-looking statements. All of the Company's forward-looking statements, whether written or oral, are expressly qualified by these cautionary statements and any other cautionary statements that may accompany such forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date of this release.

With this in mind, you should consider the risks discussed in the Offer to Purchase, under the caption "Risk Factors" in El Paso's Annual and Quarterly Reports on Forms 10-K and 10-Q and in the other documents the Company files with the SEC from time to time, which could cause actual results to differ materially from those expressed in any forward-looking statement made by the Company or on the Company's behalf.