Grant Prideco Calls 9 5/8% Senior Notes for Redemption

Grant Prideco, Inc. (NYSE: GRP) has called for early redemption of all outstanding 9 5/8% Senior Notes due 2007 at an aggregate principal amount of approximately $200 million. The Notes will be redeemed in accordance with the indenture for face value plus accrued and unpaid interest, plus a make whole premium. The make whole premium is calculated by discounting future interest and principal of the notes at a rate equal to the applicable Treasury yield plus 50 basis points. Grant Prideco closed a 5-year, $350 million senior secured credit facility on May 17, 2005. The Company plans to use this revolving credit facility plus cash on hand to fund the redemption.

With the closing of this redemption, the company anticipates that it will lower its annual net interest expense by approximately $12 million at current interest rates ($0.06 per diluted share). The company expects to record non- recurring pre-tax charges related to the redemption premium and fees, the write-off of deferred debt issuance and credit facility costs and certain other related costs of approximately $40 million in the second quarter of 2005.

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