MORGAN STANLEY EQUITY RESEARCH

EXXON MOBIL CORPORATION (XOM.N): POSITIVE ANALYST MEETING; MAINTAIN OVERWEIGHT - 09 Mar 2006

ExxonMobil Analyst Meeting Positive:
ExxonMobil held its annual analyst meeting yesterday in New York City, reviewing its strategic, operational and financial outlook. The company remains committed to value creation, which leads to higher valuation in the equity market in our opinion.

Staying the Course; Positive Themes Remain:
The strategies, growth profiles, and returns highlighted last week in our detailed report ('Super-Major Supreme' 03-02-2006) were supported at the meeting.

E&P, R&M and Chemicals Well Positioned:
Production growth target of 3%/yr. during 2006-2008 appears attainable. Significant gains likely from Africa, Asia, and the Middle East, with US and Europe in decline. ExxonMobil has the largest and most sophisticated R&M system in the world and is well positioned for our positive outlook. Returns in Chemicals lead the peer group and with favorable cyclical dynamics, the outlook is positive.

ExxonMobil's Price Objective Is $78/share:
We attain our price target using our normalized EPS forecast of $4.20/share and a market P/E multiple, or our returns and valuation framework. The company's equity has rarely been this inexpensive, in our view, relative to its industry, on a variety of conventional measures, i.e., P/S, P/B, P/CF.

Maintain Attractive View on Integrated Oils/R&M: Integrated oils appear 15% undervalued on normalized returns on capital. Independent R&M represents the best value per unit of return in the global Energy sector, we believe.