Smith International Announces New Share Repurchase Program

Smith International says that its Board of Directors has authorized a new share repurchase program whereby the Company may repurchase up to 20 million shares of its outstanding common stock. This new authorization replaces the share repurchase program announced in July 2001, which was recently completed. The repurchases will be made from time to time in the open market or in privately negotiated transactions, subject to regulatory issues, market considerations and other factors. The Company currently has 200 million common shares outstanding, excluding shares held in treasury.

Doug Rock, Chairman and CEO, commented, "This new authorization reflects our positive cash flow outlook and our ongoing commitment to maximize shareholder value. During the past year we've repurchased over $150 million of Smith International stock under the old program, returning a significant amount of our earnings to our shareholders. Considering the improving business environment, we believe the stock of Smith International continues to represent an attractive investment opportunity."