Boots & Coots Reports Record Revenues

Boots & Coots International Well Control, Inc., announced net income attributable to common stockholders of $5.8 million, or $0.08 per diluted share for the quarter ended December 31, 2007, compared to $4.5 million, or $0.07 per diluted share for the same quarter of 2006. Revenues for the quarter were $36.1 million compared to $33.7 million for the 2006 fourth quarter. EBITDA (earnings before interest, income taxes, depreciation and amortization; see the reconciliation and rationale for this non-GAAP financial measure below) was $9.9 million, or 27.4% of revenues for the quarter compared to $8.9 million, or 26.5% of revenues for the fourth quarter of 2006.

For the year ended December 31, 2007, Boots & Coots reported net income attributable to common stockholders of $7.9 million, or $0.11 per diluted share, compared to $11.8 million, or $0.21 per diluted share for 2006. Revenues for 2007 were $105.3 million compared to $97.0 million for the prior year. EBITDA was $18.7 million for the year ended December 31, 2007 compared to $24.8 million for 2006. During 2007 Boots & Coots incurred start-up expenses of $2.4 million for global expansion of the Company's snubbing/workover and prevention services and entrance into the pressure control rental business, compared to no start-up expenses in 2006.

"Fourth quarter results have moved the company over the $100 million revenue milestone," stated Jerry Winchester, president and chief executive officer. "The strong quarter is a direct result of the investment initiatives we made during 2007, including our redeployment of underutilized assets."

"Looking ahead to the first quarter of this year, we are benefiting from greater than expected activity in both the Well Intervention and Response segments. As a result, we expect to report earnings per share of $0.06 to $0.07 for the first quarter of 2008," added Mr. Winchester. "Our strategic initiatives to expand our product and service lines and build a presence in key markets have been successful, and we believe we will continue to see benefits from these throughout the year."

For the quarter ended December 31, 2007, the Well Intervention segment generated revenues of $31.3 million and EBITDA of $7.9 million, compared to revenues of $22.5 million and EBITDA of $4.2 million for the fourth quarter of 2006. Included in revenues was a $3.0 million contract settlement with the Qatar national oil company, resulting in EBITDA of $2.8 million. The remaining increase in revenues is due to growth initiatives in the Company's international operations as well as domestic improvements due to the acquisition of StassCo in the Rocky Mountains and the start up of the Company's Mid- Continent operations and pressure control rental business. This was partially offset by lower activity in the Gulf of Mexico and Venezuela. EBITDA margins were favorably impacted by a $1.8 million gain resulting from an insurance settlement for assets lost in West Africa and offset by start-up expenses mentioned below.

For the year ended December 31, 2007, Well Intervention generated revenues of $92.0 million and EBITDA of $13.7 million, compared to revenues of $76.7 million and EBITDA of $16.5 million for the prior year. The inclusion of 12 months of snubbing/workover results in 2007 compared to ten months in 2006 accounted for $5.3 million of the increase in revenues. The Company also realized a 23.9% increase in prevention services year over year. During the year, revenues and margins were negatively affected by the lower activity in the Gulf of Mexico and Venezuela coupled with the semi-fixed personnel costs associated with the snubbing/workover business. EBITDA margins also declined due to start-up costs of $2.4 million for global expansion of the Company's snubbing/workover and prevention services and entrance into the pressure control rental business.

For the quarter ended December 31, 2007, the Response segment generated revenues of $4.9 million and EBITDA of $1.9 million, compared to revenues of $11.2 million and EBITDA of $4.8 million for the fourth quarter of 2006. For the year ended December 31, 2007, the Response segment generated revenues of $13.3 million and EBITDA of $5.1 million, compared to revenues of $20.4 million and EBITDA of $8.3 million for the prior year. Lower international activity contributed to the reduced revenues and EBITDA.

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