PHILLIPS PETROLEUM COMPANY
Customer Service is the Driving Force Behind Their Business

Several years ago, Phillips Petroleum Company, headquartered in Bartlesville, Oklahoma, mapped out its plan for long-term success for the benefit of its 17,000 employees. Its plan was based on two key strategies: significantly improve operations and grow the company's core business.

Phillips Petroleum Company focused its efforts in petroleum exploration, production, refining, marketing and transportation; natural gas gathering, processing and marketing; and chemicals production and distribution. It also invested heavily in new state-of-the art retail facilities and refineries. The results: the company has experienced record growth and record financial results during the last few years with net income of more than $1 billion annually.

"The retail side of our business has changed dramatically," said Wayne E. Anderson, vice president of Marketing Operations for Phillips 66 Company. "The small, corner gas station with a mechanic has become obsolete. We now have invested heavily in the 'convenience' or 'C-store' concept. We drove our business to where the customer wanted to go."

Today, Phillips 66 has about 300 retail outlets and plans to grow to about 470 by the year 2006. The C-stores are partnering with quick-serve restaurants like TCBY, Subway, A&W, and Taco Bell.

"We continue to build state-of-the art retail facilities with more fueling positions and larger types of C-stores. It is a place where the customer can buy gasoline and order and pay for lunch at the pump. When he or she goes in the store, the food is ready to be picked up."

Mr. Anderson said Phillips 66 began a relationship with The Lewer Agency in 1984. "Then, a representative at General American introduced us to the agency. Over the years we have had a solid relationship with them. The Lewer Agency has provided us excellent benefit programs for our independent marketers. The fact that we have recently instituted a further expansion in the retail operation, I believe, speaks well of the relationship."

R.L. "Rick" Ryan, staff director of Insurance and R.L. "Bob" Ball, manager of Insurance Plans for Phillips agree with Mr. Anderson. "I believe the Lewer Agency's strength is similar to Phillips' strength," said Rick. "We believe in providing excellent customer service and in building long-term relationships."

Since 1984, Phillips has endorsed The Lewer Agency to provide life and health insurance to the small employers who handle Phillips products.

"Recently we asked the Lewer Agency to bid on a portion of our medical and dental claims processing," said Mr. Ball. "Lewer gave us a competitive proposal and worked with us to open a claims office in Bartlesville. That is service."

"Lewer now also administers our corporate benefits for more than 4,000 employees for medical and 9,000 for dental insurance along with providing flexible benefits administration."

"The Lewer Agency is in a niche business and does the things they do quite well. We don't know of anybody else in the market place that provides this type of turnkey service," said Mr. Ball.

For more than forty years, the Lewer Agency has worked with clients like Phillips through the changes of each new decade. Lewer prides itself on its ability to pro-actively meet continuing changes in the market place with the latest products and services that meet our clients changing needs.