HOUSTON, July 12, 2004 --- ConocoPhillips [NYSE:COP] and Sound Energy Solutions (SES), a wholly owned subsidiary of Mitsubishi Corporation, today announced that they have signed a non-binding Memorandum of Understanding to work jointly on the continuing development of the proposed SES liquefied natural gas import terminal.

SES is proposed to be located in the Port of Long Beach, Calif. The terminal would have a send-out capacity of 700 million cubic feet of gas per day (MMCFD) with a peak capacity of 1,000 MMCFD. The facility could become operational in 2008 upon receiving permit approval from the Federal Energy Regulatory Commission and California state agencies.

For more information about the project, go to www.soundenergysolutions.com.

Mitsubishi Corporation is Japan's largest general trading company (sogo shosha) with over 200 bases of operations in approximately 80 countries worldwide with customers around the world in virtually every industry, including energy, metals, machinery, chemicals, food and general merchandise. For more information, go to www.mitsubishicorp.com.

ConocoPhillips is an integrated petroleum company with interests around the world. For more information, go to www.conocophillips.com.

CONTACTS: Linsi Crain, Clayton Reasor