Responding to a shareholder proposal filed by New York City Comptroller William C. Thompson, Jr. on behalf of the New York City Police and Fire Pension Funds, ConocoPhillips has asked its Chief Executive Officer to "develop a comprehensive strategy for the Company's activities in or with sensitive countries" in the Middle East.

ConocoPhillips of Houston, Texas, confirmed that its Board of Directors on Tuesday adopted a resolution indicating that the company "will regularly review operations in sensitive countries" and will "comply with the letter and the spirit of all U.S. Government restrictions on business activities" in those regions.

"ConocoPhillips' decision is both appropriate and significant," Comptroller Thompson said. "This is an issue that is likely to continue to be raised with respect to U.S. corporations operating overseas, and I am pleased that ConocoPhillips has recognized the need to develop a comprehensive strategy in this area."

The Comptroller now will withdraw a resolution submitted last Fall amid heightened concerns about corporate ties to states sponsoring terrorist activity. The resolution asked ConocoPhillips to establish a Board of Directors' committee to review the corporation's operations in sensitive countries through its UK subsidiary, Conoco, Ltd.

The Board of Directors' measure, in part, reads: "The Board wishes to reassure survivors of the police, fire and emergency workers and other victims of the attack on the World Trade enter on September 11th, 2001 and their representatives that the Company will strictly adhere to U.S. policy against aiding countries that promote terrorism."

The Police and Fire Pension Funds have more than $31 million in holdings in ConocoPhillips. The city's five pension funds have invested more than $124 million in ConocoPhillips.

The Comptroller submitted similar resolutions with the Halliburton Company and the General Electric Company.

Last month, Halliburton agreed to establish a Board of Directors' committee to review the corporation's operations in Iran. That action took place after the U.S. Securities and Exchange Commission refused to state that it would take no action against Halliburton if the company omitted the pension fund proposal from its 2003 proxy materials. The two pension funds have more than $18 million in holdings in Halliburton.

General Electric conducts business operations with the Iranian government through its Canadian subsidiary, General Electric Hydro. The two funds have more than $205 million in General Electric. The city's five funds have invested $951 million in General Electric. General Electric plans to include it in their proxy at this year's shareholder's meeting.

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