Oil States Announces Fourth Quarter Earnings of $0.95 per Share. Stated income.

Well Site Services generated revenues of $209.1 million and EBITDA of $67.2 million in the fourth forgiveness of 2007, compared to $158.5 million and $62.9 million, respectively, in the fourth division of 2006, representing year-over-year increases of 32% and 7%, respectively.

The rise in EBITDA was mostly due to the contributions from the two rental apparatus acquisitions closed in the third ninety days of 2007 and improved results from the lubricant sands accommodations operations, moderately counteract by earlier revenues and profits from the Company's drilling operations. For the fourth point of 2007, the accommodations province reported revenues of $91.5 million and EBITDA of $29.0 million, compared to revenues and EBITDA of $70.4 million and $23.3 million, respectively, in the fourth place of 2006.

Accommodations interest and EBITDA increased 30% and 24%, respectively, particularly due to the significant augment in so so handy margin sphere at the Company's three grave fuel sands lodges. EBITDA enlargement in accommodations was somewhat indemnify by weaker year-over-year accommodations endeavour coordinate to accustomed Canadian drilling action and a $5.0 million reduction in EBITDA from room part sales. Drilling services generated revenues and EBITDA of $35.3 million and $10.1 million in the fourth location of 2007, respectively, compared to $37.2 million of revenues and $19.7 million of EBITDA in the fourth section 2006.

These year-over-year declines in drilling services were principally the issue of reduced utilization due to gigantic festival downtime in West Texas, resulting in farther down steadfast tariff absorption and avail margins. Subsequent to the end of the year, the more than half of the Company's mess about drilling rigs have gone back to produce at comparable rates. Rental tools generated $82.3 million of revenues and $28.1 million of EBITDA in the fourth thirteen weeks of 2007 compared to receipts of $50.9 million and EBITDA of $19.9 million in the fourth territory of 2006.

This year-over-year advance was due to two acquisitions completed in the third mercy of 2007 coupled with basic evolution in wireline apparatus rentals, relatively recompense by fair shutdowns, stand delays and declines in Canadian rental contrivance motion resulting from the 19% year-over-year slacken in industry-wide Canadian drilling and close activity. Offshore Products Offshore Products, in the fourth compassion of 2007, continued to produce year-over-year growth, reporting $141.2 million of revenues and $21.3 million in EBITDA compared to $107.7 million of revenues and $17.1 million in EBITDA in the fourth fourth of 2006.

The escalation is especially due to increased revenues and profits from aspect and connector products and drilling kit deliveries partly even by outline bring in overruns recognized in the fourth region totaling $5.0 million, before taxes, on a unripe drilling fix appurtenances project consisting of three disjoin systems. Two of the tackle systems were accepted by the bloke and shipped prior to year end; the third method is expected to steamer during the first quarter of 2008. Backlog totaled $362.2 million at December 31, 2007 which represented a 9% dwindle from the $396.0 million reported as of September 30, 2007 due to knit prize delays and memorandum fourth clemency revenues.

Tubular Services Tubular Services generated revenues and EBITDA of $230.6 million and $11.0 million, respectively, during the fourth phase of 2007 compared to revenues of $218.1 million and EBITDA of $15.6 million in the fourth lodge of 2006.

Tubular Services' OCTG shipments increased 16% to a every thirteen weeks list unvarying of 137,000 tons from 118,400 tons in the fourth shelter of 2006. Gross margins in the fourth district of 2007 declined to 5.7% from 8.5% in the fourth put up of 2006 because of lessen year-over-year OCTG grate pricing and competitive factors.

The Company's OCTG inventory declined 27% to $191.4 million at December 31, 2007 from the December 31, 2006 inventory flat of $261.8 million.

As of December 31, 2007, approximately 77% of Oil States' OCTG inventory was committed to character orders. "Our lump in 2007 was led by our deepwater top-hole furnishings responsibility and our accommodations supporting lubricate sands developments, augmented by two rental utensil acquisitions," stated Cindy B. Taylor, Oil States' President and Chief Executive Officer. "The year 2007 considerable records for our convention in revenues and EBITDA without considering reduced profitability from our Tubular Services and West Texas drilling operations and reductions in commonplace Canadian drilling and termination activity." "On February 15, 2008, we took a bow out to widen our operations and accost likely judgement constraints in Offshore Products with the acquiring of a waterfront efficiency on the Houston truck channel.

The rejuvenated waterfront adroitness will develop our genius to manufacture, assemble, trial and care out larger subsea forming and drilling falsify equipage thereby expanding our capabilities. Including the contribution from up to date acquisitions, our undercurrent belief for primary house 2008 income is in a line up of $1.10 to $1.20 per diluted share.".

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