Varco Acquires MIL Group

Varco International Inc. has acquired, through a subsidiary, the capital stock of Morinoak International Limited ("MIL"). MIL is a leading supplier of derricks, substructures and other structural drilling rig components to the oil and gas drilling industry. It also provides a broad range of construction services to the international drilling contractors including rig upgrades, project management, engineering support, inspection and refurbishment services to drilling contractors, including modifying existing drilling rigs to accommodate Varco rig equipment.

MIL is headquartered in Great Yarmouth, England, and operates rig fabrication facilities in Great Yarmouth and Aberdeen, Scotland. With approximately 170 employees, MIL expects to generate sales of about $17 million in its fiscal year, which ends Sept. 30, 2001. Terms of the transaction were not disclosed.

"For the first time, Varco will have the capability to offer integrated rig packages to our customers. MIL brings the capability to combine drilling rig structures with Varco's leading-edge drilling equipment," remarked George Boyadjieff, chairman and CEO of Varco. "Varco's customers will benefit from improved functionality and coordination among rig systems and structures. MIL marks a major strategic step for our Company, and increases our product offering to the land drilling market in particular."