EXHIBIT 99.1

[WILLIAMS LOGO]


02/04/2002


     WILLIAMS ADDRESSING POTENTIAL WCG OBLIGATION; MORE ASSET SALES PLANNED

TULSA-- Noting that the three major ratings agencies have maintained its credit
ratings, Williams (NYSE:WMB) said today it is taking significant steps to
address market concerns that have focused on potential obligations related to
its former telecommunications subsidiary.

After meetings last week with Williams management, all three of the major
ratings agencies - Moody's Investors Service, Fitch Ratings and Standard &
Poor's - retained Williams' current credit status. While S&P added negative
comments pending further review, it later said it would retract a portion of its
opinion regarding the impact of Williams' stock price decline on bank borrowing.

"We are prepared to substantially expand our planned asset sale program and, if
required, issue equity," said Steve Malcolm, president and chief executive
officer, regarding Williams' commitment to address market concerns about the
company's potential obligations related to Williams Communications (NYSE:WCG).
"This is in addition to the major steps to enhance our balance sheet that we
have already taken and will be pursuing.

"These actions will ensure that Williams retains adequate liquidity and
appropriate debt and equity levels to support an investment-grade credit rating
-- no matter the amount of our ultimate WCG exposure," he said, noting that the
maximum exposure would not exceed the previously disclosed pre-tax $2.2 billion.
"We also commit that the steps we are taking will offset any reduction in
stockholders' equity created by losses resulting from recognizing these
obligations."

Williams said last week that it is determining whether there will be a need to
recognize a charge related to its guarantee of WCG obligations. To the extent
that one is required, it will be recorded in the company's 2001 results as a
loss from discontinued operations. Malcolm said quantifying the level of any
potential WCG obligation is the only issue that remains to be resolved before
Williams will report 2001 earnings.

Malcolm said Williams is planning to sell its large Midwest petroleum products
pipeline and on-system terminals. A potential buyer would be Williams Energy
Partners, L.P. (NYSE:WEG).

This sale would be in addition to, and more than double the cash proceeds from,
the previously disclosed intention to sell non-core assets, Malcolm said.




"Although we've heard concern expressed about the timing of any potential asset
sales, since Jan. 1 we have signed agreements on $56 million in sales, and we
believe we could complete the sale of our products pipeline before the end of
the second quarter of this year," Malcolm said.

Williams already has taken these actions to fulfill the balance-sheet
strengthening measures it announced in December:

*  Raised $1.1 billion through the over-subscribed issuance of securities called
   FELINE PACS.

*  Reduced 2002 capital-spending budget by $1 billion.

*  Made progress toward the goal of selling $250 million to $750 million in
   non-core assets in 2002.

*  Committed to at least $50 million in other expense reductions.

*  Began negotiations to remove the ratings triggers from existing debt.

About Williams (NYSE: WMB)

Williams, through its subsidiaries, connects businesses to energy, delivering
innovative, reliable products and services. Williams information is available at
www.williams.com.


CONTACT INFORMATION:
                                                                         
Jim Gipson (media relations)         Rick Rodekohr (investor relations)        Richard George (investor relations)
(918) 573-2111                       (918) 573-2087                            (918) 573-3679
jim.gipson@williams.com              rick.rodekohr@williams.com                richard.george@williams.com