WYOMING 8,000 BPD SYNTROLEUM GTL PROJECT LAUNCHED

In February Syntroleum Corporation signed a deal with an Enron subsidiary to develop an 8,000 barrel per day gas-to-liquids specialty product plant in Sweetwater County, Wyoming.

Enron Capital & Trade Resources Corporation (ECT), Syntroleum and SLH Corporation have contributed a total of $3 million to fund detailed engineering, land purchase and other development costs. Subject to certain conditions, ECT has committed an additional $14.5 million for a minority interest in the plant.

The plant will utilize the Syntroleum Process to convert natural gas into specialty products, including synthetic lubricants, drilling fluids and liquid normal paraffins. The plant should also generate in excess of 50 megawatts of electricity for sale to others. Bateman Engineering has been elected as the engineering contractor on the project. Construction is scheduled to begin in late 1998 and the plant is expected to be operational in 2001.

Separately, Syntroleum announced the signing of a non-exclusive volume license agreement under which ECT or other Enron affiliates acquired the right to license the Syntroleum Process outside of North America for the production of liquid fuels. Other companies that have licensed the Syntroleum Process include Texaco, ARCO, Marathon, YPF and Kerr-McGee.

In March Syntroleum announced its intention to merge with SLH Corporation, which owns approximately 31 percent of Syntroleum. The transaction is expected to close by the end of the second quarter 1998.

In the merger, all outstanding shares of Syntroleum common stock will be exchanged for shares of SLH common stock. All outstanding shares of SLH stock will remain outstanding. The name of SLH will be changed to Syntroleum, and SLH management and six of the eight SLH directors will be replaced with Syntroleum management and directors.

A principal purpose of the merger is to provide Syntroleum with access to the approximately $50 million of SLH's cash and other assets to fund Syntroleum's capital commitments to the Wyoming gas-to-liquids project. The capital will also be used to continue research and development of process improvements and for general working capital.