Valero L.P. Completes Sale of Australia and New Zealand Subsidiaries

Valero L.P. (NYSE:VLI) today announced it has completed
its previously announced sale of Australia and New Zealand
subsidiaries to ANZ Terminals Pty. Ltd. for total proceeds of
approximately $65 million, plus net working capital. This transaction
included the sale of eight terminals, located in Australia and New
Zealand, with an aggregate storage capacity of 1.1 million barrels.

   Valero L.P. is a master limited partnership based in San Antonio,
with 9,186 miles of pipeline, 89 terminal facilities and four crude
oil storage facilities. One of the largest independent terminal and
petroleum liquids pipeline operators in the nation, the partnership
has operations in the United States, the Netherlands Antilles, Canada,
Mexico, the Netherlands and the United Kingdom. The partnership's
combined system has approximately 77.7 million barrels of storage
capacity, and includes crude oil and refined product pipelines,
refined product terminals, petroleum and a specialty liquids storage
and terminaling business, as well as crude oil storage tank
facilities. For more information, visit Valero L.P.'s web site at
www.valerolp.com.

   Cautionary Statement Regarding Forward-Looking Statements

   This press release includes forward-looking statements within the
meaning of the Securities Litigation Reform Act of 1995 regarding
future events and the future financial performance of Valero L.P. All
forward-looking statements are based on the partnership's beliefs as
well as assumptions made by and information currently available to the
partnership. These statements reflect the partnership's current views
with respect to future events and are subject to various risks,
uncertainties and assumptions. These risks, uncertainties and
assumptions are discussed in Valero L.P.'s 2005 annual report on Form
10-K and subsequent filings with the Securities and Exchange
Commission.