Parker to Redeem $25 Million of Convertible Notes

Parker Drilling Company has given Notice of Redemption to redeem $25 million of its 5.5% Convertible Subordinated Notes due 2004 on May 6, 2004 at 100.786% of face value.

Insurance proceeds of $27 million for settlement of a claim resulting from an incident on jackup rig 14, which occurred in September 2003, will be used to redeem the Notes. A portion of the proceeds has already been used to purchase the Notes in the open market. Since Jan. 1, 2004, Parker has retired a total of $20.9 million of debt comprised of $15.8 million of the Notes and $5.1 million of a secured promissory note with Boeing Capital Corporation.