Executive Summary:

On January, 1998, the Senior Executives of DuPont are considering possible divesture of Conoco. Based on financial analysis and economics data analysis, I propose that divest 40% shares and keep the mainly control of Conoco.

We believe that divesting Conoco from DuPont will:

- permit DuPont to expand its life sciences business, while at the same time allowing Conoco to pursue its investment program in new and capital-intensive oil and gas projects;

- facilitate future partnerships, combinations and other arrangements between Conoco and other entities in the oil and gas business;

- allow each company to offer incentives to its employees that are more closely linked to its performance;

- permit each company to focus its managerial and financial resources on the growth of its business (2)

And we also believe that by controlling Conoco, DuPont will:

- benefit from the cost of control, promote competitive in other market which need to use crude oil as its raw material.

- gain from the increasing price in crude oil in future cause the resources is nonrenewal.

Thus, based on financial and economics perspectives, DuPont need to divest 40% of Conoco and keep control the rest of it.
Analysis

Ladies and gentlemen shareholders, Chairman, Director and Managers,

It is a great pleasure to greet you all once again on behalf of the managers of DuPont, and welcome you to our shareholders’ meeting.

Today, I have a big decision to announce about Conoco divestiture after management discussion and analysis. Conoco has been very successful but I plan to divest part of Conoco and keep 51%-60% of control of Conoco. This decision based on Macro and Micro economics and DuPont financial analysis in the last three to four years..

As the Chief Financial Officer of DuPont, please allow me to introduce our company briefly at first.