Williams Announces Major Expansion of Kern River Pipeline

SALT LAKE CITY--(BUSINESS WIRE)--March 22, 2001--A unit of Williams (NYSE:
WMB - news) Thursday announced an expansion project on its Kern River
pipeline that will more than double the amount of natural gas transported on
the 926-mile pipeline system.

The 2003 Kern River Expansion Project will provide 900 million cubic feet
per day of additional transportation capacity from Wyoming to California by
May of 2003.

Last November, Williams held an open season to determine the level of
interest from shippers for additional transportation capacity from Rocky
Mountain basins to markets in Utah, Nevada, and California.

``We knew the demand was strong, however the response was even greater than
we anticipated. There is a tremendous demand for natural gas to fuel new
electric generation facilities in California and Nevada.

``This expansion provides shippers with an economically attractive
opportunity to secure additional firm year-round transportation,'' said Kirk
Morgan, director of business development for Kern River.

The more than $1 billion expansion project will loop approximately 700 miles
of the existing Kern River pipeline system. Williams plans to file an
application with the Federal Energy Regulatory Commission (FERC) in June.
All project issues -- including facility design, environmental studies,
rates and tariff provisions -- will be subject to review and approval by the
FERC.

Williams must also secure the necessary environmental and regulatory
approvals, and negotiate rights of way.

Last week, Williams filed a California Emergency Action application with the
FERC to install and operate emergency facilities on Kern River that would
increase capacity by approximately 19 percent over the current 700 million
cubic feet per day.

The $81 million emergency expansion project would add 135 million cubic feet
per day of firm transportation service into California by July 1, 2001, to
help meet the urgent need for additional energy this summer.

In November of 2000, Williams filed an application with the FERC for its
first expansion on Kern River, the 2002 California Expansion Project. The
application proposes the installation of compression to provide an
additional 124 million cubic feet per day of firm transportation service.

This $80 million project is targeted for completion by May 1, 2002 and
largely relies upon facilities previously installed as part of the pending
California Emergency Action expansion project.

``Shippers are seeking more access to natural gas from Rocky Mountain
basins, where producers are aggressively stepping up production. Kern River
is in the right place at the right time to help bring that production to
market,'' said Morgan.

Williams' gas pipeline unit is based in Houston and has offices in Salt Lake
City and Owensboro, Ky. Together, its five interstate natural gas pipelines
are among the nation's largest-volume transporters of natural gas,
delivering approximately 16 percent of the natural gas consumed in the
United States.

Williams' 27,300-mile pipeline network stretches from coast to coast with
access to every major supply basin in the country. The gas pipeline unit's
Kern River Gas Transmission delivers Rocky Mountain and Canadian natural gas
to markets in California, Nevada, and Utah. The system has a design capacity
of 700 million cubic feet per day.

About Williams

Williams, through its subsidiaries, connects businesses to energy and
communications. The company delivers innovative, reliable products and
services through its extensive networks of energy-distributing pipelines and
high-speed fiber-optic cables. Williams' information is available at
www.williams.com.

Portions of this document may constitute ``forward-looking statements'' as
defined by federal law. Although the company believesany such statements are
based on reasonable assumptions, there is no assurance that actual outcomes
will not be materially different. Any such statements are made in reliance
on the ``safe harbor'' protections provided under the Private Securities
Reform Act of 1995.

Additional information about issues that could lead to material changes in
performance is contained in the company's annual reports filed with the
Securities and Exchange Commission.