Grant Prideco Acquires Novatek Diamond Manufacturing

Grant Prideco has acquired the polycrystalline diamond compact ("PDC") manufacturing business of Novatek International, Inc., located in Provo, Utah, for a total purchase price of approximately $21 million, including cash and debt. This acquisition will be included in the Company's ReedHycalog(TM) drill bit segment. ReedHycalog is a global leader in drill bit technology, manufacturing, sales and service and a provider of technological solutions to the worldwide petroleum drilling markets.

The Company's Chairman, President and CEO, Michael McShane, commented, "We are pleased with the acquisition of this business, which has been a valuable contributor to the growth of ReedHycalog. The two companies have worked together on PDC technologies for over a decade. This acquisition provides us with manufacturing capabilities to ensure a high quality supply of PDC cutters and provides for better control over cutter technologies. As a result of increasing our in-house PDC manufacturing capabilities, we expect to realize EBITDA improvement of approximately $5 - 6 million per year based on current PDC demand levels."