Saudi Aramco Selects Dresser-Rand for Strategic Cooperation Agreement

Dresser-Rand announced that on March 17, 2009, its affiliate has entered into a long-term Corporate Procurement Agreement (CPA) with Saudi Aramco. The CPA promotes local content and demonstrates Dresser-Rand's commitment to this important client.

Vince Volpe, Dresser-Rand's President & CEO, commented that, "Part of our strategic plan clearly identified the need for a strong unified approach to our Middle East markets, including the opportunity to better serve our clients with more local presence. The agreement with Saudi Aramco, one of the world's largest oil producers, is a leap forward for us. We have worked closely with Saudi Aramco to better understand their requirements, and after extensive review, we are honored to have been selected as the first manufacturer to supply our full range of compressor and steam turbine products under the Corporate Procurement Agreement."

In support of the agreement, and consistent with the Company's plan for increased local presence, Dresser-Rand also announced that it will open and operate a new facility to serve as a center of excellence for manufacturing, repairs, service, technical expertise and training. The Company expects the new operation will be in the form of a joint venture with their long time business associates, Al-Rushaid Petroleum Investment Company of Saudi Arabia. The joint venture, Dresser-Rand Arabia, will serve Saudi Aramco, other clients in the Kingdom of Saudi Arabia, and other selected clients in the gulf region.

According to Mr. Esam Mousli, Vice President of Materials Supply for Saudi Aramco, "Our team has done a great deal of work to identify the companies that can best bring us value through their technology, quality, business processes and service capabilities. This value, coupled with Dresser-Rand's full commitment to maximizing local content in the new equipment manufacturing, after service repairs and support, and joint Research and Development, based here in Dhahran, has brought us to the decision to select them as one of our most valued suppliers under the Corporate Procurement Agreement initiative."

"Our Vision is to create a Center of Excellence in the Kingdom," said Volpe. "Dresser-Rand Arabia will serve as the hub of activity in the region, provide support for new project programs, provide after-sales service, offer training and repair support for the existing installed base of rotating equipment, create a competitive manufacturing environment for an array of Dresser-Rand products for in-Kingdom projects as well as for export, engage with the King Fahd University of Petroleum and Minerals in joint research and development programs, and create employment in the Kingdom at all levels from management to the shop floor. We, and our long time partners led by Sheikh Abdullah Al-Rushaid, are appreciative of the opportunity Saudi Aramco is providing us. This agreement will advance the clear agenda of the Kingdom to create added value employment locally, provide excellent service to Saudi Aramco and other companies in the region, and help Dresser-Rand grow our new unit and served aftermarket significantly in this key region of the world."