Greehey Steps Down as Valero Energy's Chairman to Focus on Valero L.P., Valero GP Holdings and Philanthropic Endeavors; Klesse E

  
    
  
  
    
      Valero Energy Corporation (NYSE:VLO) announced today that Bill Greehey, 
      70, has stepped down as Chairman and resigned from the company’s 
      board of directors. Greehey, who will continue to serve as Chairman of 
      both Valero L.P. (NYSE:VLI) and Valero GP Holdings, LLC (NYSE:VEH), will 
      turn his full attention to these companies now that they are independent 
      of Valero Energy, and will concentrate on his many philanthropic 
      endeavors.
    
    
      The board of directors of Valero Energy has elected the company’s 
      CEO Bill Klesse, 60, as the new Chairman, effective immediately. When 
      Greehey stepped down as CEO at the end of 2005, Klesse was appointed to 
      that position, elected to the board and named Vice Chairman.
    
    
      “When I retired as CEO, I said that I would 
      remain as Chairman to ensure a smooth transition and to oversee the 
      initial public offering of Valero GP Holding’s 
      interest in Valero L.P.,” Greehey said. “Now 
      that the L.P. is independent of Valero Energy, both companies are in a 
      good position to continue growing, so it is inevitable that there will 
      be conflicts of interest between the companies going forward. Since 
      Valero is now the largest refiner in North America and the L.P. is just 
      getting its start as an independent company, I have decided to turn my 
      full attention to helping the L.P. build on its success in the coming 
      years. And, of course, I will be able to spend more time on a number of 
      philanthropic endeavors that are important to me.
    
    
      “I want to thank all of the employees for the 
      support they gave me during my years as CEO. Because of our strong 
      culture, we survived and prospered together and we built a great company,” 
      Greehey said.
    
    
      Klesse thanked Greehey for his leadership, “On 
      behalf of all of Valero’s employees, I want 
      to thank Bill for making the company the tremendous success it is today. 
      It is a great company because we have an outstanding board, a strong 
      management team and the best employees in the industry. And, I am 
      looking forward to continuing to work with them to build upon the great 
      foundation that Bill established.”
    
    
      With almost 38 years of industry experience, Klesse has held leadership 
      positions in many different areas, including commercial operations and 
      refining, corporate development and new ventures, planning and public 
      affairs, logistics and strategy, marketing and oil and gas unit 
      planning. He joined Valero as Executive Vice President of Refining and 
      Commercial Operations when the company acquired Ultramar Diamond 
      Shamrock Corp. (UDS) in 2001, and he was promoted to Executive Vice 
      President and COO in 2003.
    
    
      Klesse started his career with Diamond Shamrock in 1969 as a junior 
      process engineer at the company’s McKee 
      refinery. He received a Bachelor of Science degree in chemical 
      engineering from the University of Dayton and a Master of Business 
      Administration with an emphasis in finance from West Texas A&M 
      University.
    
    
      About Valero Energy Corporation
    
    
      Valero Energy Corporation is a Fortune 500 company based in San Antonio, 
      with approximately 22,000 employees and annual revenues of more than $90 
      billion. The company owns and operates 18 refineries throughout the 
      United States, Canada and the Caribbean with a combined throughput 
      capacity of approximately 3.3 million barrels per day, making it the 
      largest refiner in North America. Valero is also one of the nation's 
      largest retail operators with more than 5,500 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.