Key Energy Receives Extension from the NYSE

Key Energy Services, Inc. (NYSE: KEG) reports that the New York Stock Exchange has granted the Company an extension to file its Form 10-K for the year ended December 31, 2003 up to March 31, 2005, subject to reassessment on an ongoing basis. The Company had requested that the NYSE provide such an extension and the Company's management met with representatives of the NYSE on December 17, 2004. In the event the Company is unable file its December 31, 2003 Form 10-K by that date, the NYSE has indicated that it will initiate suspension procedures. The Company is not yet able to predict whether its restatement process and audit will be completed in time for it to file its Form 10-K for the year ended December 31, 2003 by March 31, 2005. In addition, there can be no assurances that the NYSE will not accelerate the trading suspension prior to the end of the three-month extension period based on the NYSE's continued reassessment of the Company.