Valero GP Holdings Elects New Director to Board

Valero GP Holdings, LLC (NYSE:VEH) announced today the
election of accountant William B. "Bill" Burnett to its board of
directors.
   "We're very pleased that Bill Burnett is joining the board," said
Valero GP Holdings Chairman Bill Greehey. "He has a vast background in
public accounting and has been very active in the community for a long
time. He's a great addition to the board."
   Burnett, 56, is chief financial officer and a board member of
Lucifer Lighting Co., a San Antonio-based manufacturer of low-voltage
architectural lighting products. He retired from Arthur Andersen as a
partner in 2001 after 29 years of service, including division head
responsibilities in the San Antonio office.
   He remains active as a certified public accountant, and he has
served on numerous civic boards and commissions, including the boards
of directors at the North San Antonio Chamber of Commerce, the St.
Mary's University Forum on Entrepreneurship and the Boy Scouts of
America Alamo Council.
   Burnett becomes the third board member of Valero GP Holdings,
joining Greehey and former Valero Energy Corporation Executive Vice
President and General Counsel Stan McLelland, who joined the Valero G.
Holdings on July 19 when its initial public offering of shares closed.
Valero GP Holdings is a holding company that owns the general partner
of Valero L.P.
   McLelland, 60, also sits on the board of Valero L.P. After leaving
Valero Energy, McLelland served as ambassador to Jamaica from January
1998 to March 2001. He previously was a lawyer with the Baker Botts
law firm in Houston, and had his own law firm in Austin. He is active
in civic and charitable organizations, including the Council of
American Ambassadors, the Texas Bar Foundation and the KLRN Board of
Directors.

   About Valero GP Holdings:

   Valero GP Holdings, LLC owns the general partner of and a 21.4
percent limited partner interest in Valero L.P. A publicly traded
limited partnership based in San Antonio, Valero L.P. operates
independent terminals and petroleum liquids pipeline systems in the
United States and also operates terminals in the Netherlands Antilles,
Canada, Mexico, the Netherlands and the United Kingdom. The
partnership's assets include 9,243 miles of pipeline, 88 terminal
facilities and 60 crude oil storage tanks with an aggregate storage
capacity of approximately 77 million barrels. For more information on
Valero L.P., please visit www.valerolp.com. For more information on
Valero GP Holdings, LLC, please visit www.valerogpholdings.com.