Freeport-McMoRan Copper & Gold Inc.Completes Acquisition of Phelps Dodge Corp. Creating World's Largest Publicly Traded Copper Company

PHOENIX, AZ - Freeport-McMoRan Copper & Gold Inc. announced that it has completed its acquisition of Phelps Dodge Corporation creating the world's largest publicly traded copper company.

In this $26 billion transaction, Phelps Dodge shareholders received $88 in cash ($18 billion in
total) and 0.67 of a share of FCX's common stock (137 million shares in total), equivalent to a value of $128.68 per Phelps Dodge share based on the closing price of FCX's common stock on March 16, 2007.

FCX currently has approximately 334 million shares outstanding.

James R. Moffett, Chairman of the Board of FCX, said: "The new FCX will benefit from a diverse portfolio of proven assets, an attractive growth profile and an exciting portfolio of exploration targets. We are highly enthusiastic about the asset base created by this leading copper producer."

Richard C. Adkerson, FCX's Chief Executive Officer, said: "We are pleased to combine the assets of two great companies in the largest transaction in the history of the metals and mining industry. These assets will deliver significant copper volumes to an attractive market place, providing substantial cash flows that will enable us to invest in growth projects and reduce debt rapidly. We look forward to the opportunities that this highly attractive transaction provides our shareholders."

The new FCX will be an international mining industry leader based in North America with large, long-lived, geographically diverse assets and significant proven and probable reserves of copper, gold and molybdenum. FCX has one of the most dynamic portfolios of operating, expansion and growth projects in the copper mining industry.