Corporate Responsibility Health, Environment & Safety At Marathon, the responsible stewardship of the environment and the delivery of a leading health and safety performance are core values. We adhere to the highest Health, Environment and Safety (HES) practices and integrate HES performance standards into the business and engineering plans of all our projects and ventures around the world. Marathon employees and contractors participate in a wide variety of proactive training and educational programs, with a strong focus on preventing accidents, reducing emissions and releases, and ensuring adequate emergency preparedness. In 2003, Marathon’s upstream operations surpassed our safety goals, logging a combined employee and contractor Recordable Incident Rate of 1.49 versus a goal of 1.6 per 200,000 worker hours and a combined employee and contractor Lost Time Incident Rate of 0.31 versus a goal of 0.40 per 200,000 worker hours. Additionally, Marathon’s upstream operations surpassed our environmental goal with a spill rate of 3.87 barrels of liquid hydrocarbons versus a goal of 9.00 barrels per million barrels produced. These achievements were made during a time of considerable activity in Equatorial Guinea, where we recorded 8 million worker hours from the more than 2,500 workers participating in the construction of our expansion projects. For 2004, we are setting even more stringent goals. MAP recorded its best-ever year in safety and environmental performance during 2003 after winning the National Petrochemical & Refiners Association’s (NPRA) “Responsible Care Company of the Year” award in 2002 and 2001. In addition, in 2003 six of MAP’s seven refineries earned NPRA safety awards for outstanding performance in areas such as injury reduction and hours worked without a lost-time injury. Valuing Diversity Marathon is commited to fostering an environment in which all employees are respected and valued. Implementing diversity throughout Marathon is a key component of our strategy for continued business success in the increasingly diverse global marketplace. Marathon’s cultural awareness programs educate and increase sensitivity to the various communities in our workforce. Our Diversity Councils provide a voice for employees to share ideas, thoughts and concerns. During 2003, the councils representing the U.S. business units and Houston were consolidated into one North American Council to reflect the centralization of U.S. production. In 2004, Marathon is establishing a council in the Europe business unit. Following the successful implementation of diversity-skills-based training for all managers and supervisors, a new training program for non-managers and non-supervisors will be introduced to increase individual effectiveness and enhance communication skills. In addition, our mentoring program will be expanded to all business units during 2004 to help employees with career development, knowledge transfer, coaching and support. Our Supplier Diversity initiative provides minority-owned; women-owned; and small, disadvantaged businesses with an opportunity to compete on an equal basis for supply and service opportunities within Marathon and our subsidiaries. In 2003, discretionary expenditures with diverse suppliers totaled more than $127 million, an increase of more than 60 percent over 2002. Giving Back to the Community Marathon offers sustainable benefits to the areas where we operate by being responsive to the needs and interests of our employees, neighbors and community stakeholders. The Marathon Oil Company Foundation provides support for the educational, health and human services, civic, environmental and social needs of our local communities. In 2003, the Foundation targeted its efforts, more than doubling its contributions to health and human service agencies and civic, community and environmental organizations. In addition, the Foundation continued its commitment to the support of higher education, demonstrated by its contribution of $300,000 to the Colorado School of Mines to establish the Marathon Center for Excellence in Reservoir Studies in the Department of Petroleum Engineering. The center is designed to bring together students, faculty, industry and private consulting organizations to provide high-end technical solutions to reservoir challenges. In 2003, Marathon established the Global Volunteer Awards to honor the exemplary volunteer efforts of employees by annually awarding $1,000 grants to the non-profit organizations where winning volunteers share their time, talent and energy. During its first year, the program recognized 22 exemplary volunteers at Marathon locations around the world.