Quality Tubing to Raise Prices

Varco International announced that its Quality Tubing subsidiary will increase prices an average of 9.1% effective July 1, 2004. Quality Tubing is one of the world's largest producers of coiled tubing used in the oilfield service industry for various downhole activities. Quality's coiled tubing products can be over 30,000 feet in length without a single tube girth weld, whereas traditional downhole tubular products are joined by connectors at 30 or 40 foot intervals.

David Daniel, President of Quality Tubing, commented, "World steel market prices and other inflationary pressures have dictated that we evaluate the costs of our manufacturing and service operations. In order to keep providing the same high quality products and services, it is necessary to raise the price of all of our tubing products." The new prices will take effect for orders placed on or after July 1, 2004. Orders placed prior to July 1st, with standard manufacturing lead times, will maintain the current prices; even if the tubing ships after July 1st.

Quality Tubing is a subsidiary of Varco International Inc., a leading provider of services, products, and highly-engineered equipment to the world's oil and gas industry. With operations in over 350 locations in over 40 countries across six continents, the Company provides oilfield tubular inspections and internal tubular coating services; drill cuttings separation, waste management and disposal services; rig instrumentation and communication services; in-service pipeline inspection services; and sucker rod inspection and reclamation services. Additionally, the Company manufactures and supplies innovative drilling systems and technology; coiled tubing and pressure control equipment; high-pressure fiberglass and composite tubing; and in-line inspection equipment for the makers of oilfield tubing.