Parker Drilling to Offer Senior Floating Rate Notes

Parker Drilling Company (NYSE: PKD) intends, subject to market and other conditions, to raise a total of approximately $150 million gross proceeds through a private offering of senior floating rate notes with an expected six-year maturity. The Company anticipates that the notes will be unsecured and guaranteed by substantially all of its domestic subsidiaries. The offering of the notes will be made within the United States only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States only to non-U.S. persons in reliance on Regulation S under the Securities Act.

The Company intends to use the net proceeds of the offering of the notes to repay all outstanding borrowings under the term loan portion of its existing credit facility (currently $70 million) and, together with cash on hand, to fund the August 6, 2004 cash tender offer for up to $80 million aggregate principal amount of the Company's 10 1/8% senior notes due 2009.

The securities to be offered have not been registered under the Securities Act, or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.