Grant Prideco Acquires Diamond Products International

Grant Prideco has entered into a definitive agreement with NQL Drilling Tools, Inc. to acquire Diamond Products International, Inc. DPI is a designer and manufacturer of specialized polycrystalline diamond compact ("PDC") drill bits and coring equipment. DPI is the market leader in bi-center bits with approximately 50% market share. The company is headquartered in Houston, Texas, and employs approximately 90 people worldwide. This business 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 purchase price will be approximately $17 million before transaction costs and adjustments related to working capital. Revenue for 2003 was approximately $19 million. The closing is subject to customary terms and conditions, which are expected to be completed during the next 14 days.