Marathon Evaluating Separation of Businesses

HOUSTON, July 31 /PRNewswire-FirstCall/ -- The Board of Directors of
Marathon Oil Corporation (NYSE: MRO) announced today that as part of its
continuing focus to enhance shareholder value, they are evaluating the
potential separation of Marathon into two strong independent publicly traded
companies, each focused on its own set of business opportunities. One entity
would consist of the Company's Exploration and Production, Integrated Gas, and
Oil Sands Mining businesses; and the other entity would consist of the
Company's Refining, Marketing and Transportation business.
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While this evaluation has been underway internally for several months, the
Company has taken the additional step of engaging financial advisors Morgan
Stanley, and the law firms of Baker Botts LLP and McKee Nelson LLP as external
advisors. It is anticipated that the results of this effort will be reviewed
by the Board of Directors and a decision will be made during the fourth
quarter 2008. Should the decision be made to separate, the separation would
likely occur during the first quarter 2009.
As previously announced, Marathon will hold its quarterly earnings
conference call and webcast today, Thursday, July 31, at 2 p.m. EDT.
Interested parties can listen to the conference call/webcast by visiting
Marathon's website at www.Marathon.com and clicking on the "2008 Second
Quarter Financial Results Conference Call" link. Replays will be available on
the website through Aug. 14.
Marathon is an integrated international energy company engaged in
exploration and production; oil sands mining; integrated gas; and refining,
marketing and transportation operations. Marathon, which is based in Houston,
has principal operations in the United States, Angola, Canada, Equatorial
Guinea, Gabon, Indonesia, Ireland, Libya, Norway and the United Kingdom.
Marathon is the fourth largest United States-based integrated oil company and
the nation's fifth largest refiner.
This release contains forward-looking statements with respect to the
evaluation of separating Marathon Oil Corporation into two distinct
businesses. Some factors that could potentially affect these forward-looking
statements include board approval, future financial condition and operating
results, and economic, business, competitive and/or regulatory factors
affecting Marathon's businesses. In accordance with the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995, Marathon
Oil Corporation has included in its Annual Report on Form 10-K for the year
ended December 31, 2007, and subsequent Forms 10-Q and 8-K, cautionary
language identifying other important factors, though not necessarily all such
factors, that could cause future outcomes to differ materially from those set
forth in the forward-looking statements.
Media Relations Contacts: Lee Warren 713-296-4103
Paul Weeditz 713-296-3910

Investor Relations Contacts: Howard Thill 713-296-4140
Chris Phillips 713-296-3213
Michol Ecklund 713-296-3919

SOURCE Marathon Oil Corporation

Media Relations: Lee Warren, +1-713-296-4103, or Paul Weeditz,
+1-713-296-3910; Investor Relations: Howard Thill, +1-713-296-4140, Chris
Phillips, +1-713-296-3213, or Michol Ecklund, +1-713-296-3919, all of Marathon
Oil Corporation