Grant Prideco Signs TReX License Agreement with Smith Internationa

Grant Prideco's ReedHycalog division has entered into a technology licensing arrangement with Smith International, Inc. Under the agreement, Smith acquired a license to use ReedHycalog's patented TReX technology for the shallow leaching of PDC cutters in exchange for certain monetary consideration and future royalty payments. As part of this business arrangement, ReedHycalog has an option to acquire a license to certain Smith technologies in the future for an undisclosed fee payable to Smith.

The TReX technology was first introduced to the drill bit market by ReedHycalog in 2002 and has resulted in a step-change in drill bit performance and commercial value.

Michael McShane, President and Chief Executive Officer of Grant Prideco, commented, "After numerous months of negotiation, we are pleased to consummate this business relationship with Smith, which we believe allows ReedHycalog to further capitalize on the commercial and technical vale of its TReX technologies."