Husky Energy supports U of C with five-year,
$8 million commitment

Husky Energy Inc. will contribute $8 million in financial and corporate support to the University of Calgary’s Chair in Bituminous Materials over the next five years by setting up an endowment fund of $3 million to support asphalt research and learning.

Further, the Company will renew work commitments in 2005 to the research team and provide other ongoing corporate support at a cost of $5 million over the next five years.

“Husky Energy is a strong supporter of post-secondary education and research in Canada. Our commitment celebrates the 100th anniversary of our province in 2005,” said Mr. John C.S. Lau, President and Chief Executive Officer of Husky. “On behalf of Husky, I am very pleased to continue our decade long support of the Chair in Bituminous Materials. Husky’s support for education and research for the better use of natural resources will help prepare Canadians for a brighter future.”

Husky Energy has been a supporter of the U of C for more than 30 years and the endowment is the largest contribution the company has made to the University. The Alberta government and the U of C have expressed their gratitude and positive support for Husky’s new endowment and its renewed commitment to the Chair in Bituminous Materials.

“ The relationship between Husky Energy and the U of C is an excellent example of collaboration in our post-secondary learning system,” said Alberta Minister of Learning Dr. Lyle Oberg. “Thanks to Husky Energy’s generous contribution and ongoing support, I am confident that this partnership will continue to produce innovative and leading-edge research.”

Dr. Harvey Weingarten, University of Calgary President and Vice Chancellor, stated, “The Husky Chair in Bituminous Materials will help the University of Calgary maintain its position as a world leader in energy research. Husky’s generous support does more than simply fuel world-class research – it means our students will have an opportunity to learn from the very best.”

The Chair, which is held by Dr. Ludo Zanzotto, is a focal point for research, product development and materials testing for the asphalt industry in Canada. Dr. Zanzotto has been working with professors, visiting scientists and engineers, graduate students and researchers. By the end of 2004, two doctorates and six masters’ degrees will have been awarded.

Husky Energy is an industry leader in asphalt production. The Company has a refinery in Lloydminster, Alberta which processes heavy crude oil into asphalt and other products. The Company had its fourth consecutive year of record asphalt sales in 2003, producing more than 750,000 cubic metres, which could pave 15,000 kilometres of two-lane highway. Husky’s support for the Chair has helped it obtain three new patents, and other patent applications are pending approval.

The growth in motor vehicle traffic combined with the rising costs of road maintenance and construction increase the importance of asphalt research. The Alberta government will spend more than $2 billion over the next three years on highway construction, rehabilitation and maintenance. The development of better materials will be critical to saving millions of dollars each year in repair or maintenance costs and extending the useful life of roads and highways across North America.