BJ Services Wins Final Appeal on Patent Infringement Award

BJ Services Company reports that the United States Supreme Court has denied a request from Halliburton to hear its appeal of a $101 million judgment in favor of BJ. The original award was issued in April of 2002 by a Houston District Court following a unanimous jury verdict. In August of 2003, a three-judge panel of the Court of Appeals for the Federal Circuit unanimously affirmed the judgment. No further appeals are available to Halliburton.

The judgment has accrued interest during the appeals process and now totals over $106 million. BJ expects Halliburton to satisfy this judgment promptly. BJ anticipates recording an estimated gain in the range of $55 - $58 million, after taxes, for its quarter ending June 30, 2004, for this income.

BJ filed this lawsuit in March of 2000 seeking damages for Halliburton's infringement of BJ's Vistar(R) system, a patented method of fracturing oil and gas formations with a low polymer fracturing fluid. In addition to damages, the judgment included a permanent injunction prohibiting Halliburton from continuing to sell or offer for sale its competing system known as Phoenix.

BJ Services' Chairman and CEO, Bill Stewart commented, "Vistar is one of many patented and proprietary innovations in fracturing technology delivered by BJ which are providing superior results for our customers. We are pleased with the Supreme Court's decision."

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