Smith International Announces Two-for-One Stock Split

Smith International, Inc. (NYSE: SII) announced that its Board of Directors has declared a two-for-one stock split, to be effected in the form of a stock dividend. Stockholders of record on August 5, 2005 will be entitled to one additional share of common stock for each share held on that date, with fractional shares paid in cash. The Company's transfer agent, EquiServe Trust N.A., will distribute the stock dividend on or about August 24, 2005. As of July 20, 2005, the Company had 100,766,822 shares outstanding, exclusive of shares held in treasury.

Chairman and CEO Doug Rock commented, "Smith's Board of Directors' decision to split our stock is a strong indication of the confidence we have in the growth opportunities for our business. We believe the stock split, our second in the past three years, will improve the liquidity of our stock and make our shares available to a larger and more varied group of investors."

Smith also announced that its Board of Directors has approved the regular quarterly dividend which, due to the stock split, has been adjusted to provide an equivalent dividend yield. Stockholders of record on September 15, 2005 will be entitled to a cash dividend of $0.06 per share, payable on October 14, 2005.