RESULT OF THE NEGOTIATION
WITH PETROECUADOR

YPF Ecuador, Inc. (former Maxus Ecuador, Inc.) and YPF S.A. (NYSE: YPF) from Argentina would like to communicate the successful completion of the negotiations which culminated with the signature on December 27, 1996 of the new Production Sharing Contract in Block 16 with the Government of the Republic of Ecuador through Petroecuador.

In August of 1996 the Ecuadorian Government expressed its desire to renegotiate the existing Service Contract into a Production Sharing Contract.

As a request from the Minister of Energy and Mining Mr. Alfredo Adúm, between August and December 1996 the parties worked intensely to reach and agreement for a Production Sharing Contract which fulfills the objectives of protecting the interest of the Ecuadorian Government and its people as well as the interest of the Parties of Block 16.

YPF Ecuador, Inc. and YPF S.A. celebrate the successful achievement of the negotiations, and at the same time would like to manifest their willingness to continue working and investing in Ecuador within the established legal framework.

Buenos Aires, January 29th, 1997.