1. Highlights from Varel’s exhibition at the 2005 Offshore Technology 2 – 5 May 2005 Reliant Center, Houston

2. About the Conference 2005 Attendance: 51,320 industry professionals from 110 countries. This was the largest attendance at OTC since 1985. Varel was one of 2,087 exhibiting companies which occupied more than 410,000 net square feet of exhibit space.

3. During the show…

4. Varel’s 36” roller cone was a BIG attraction at this year’s OTC.

5. Varel’s bicenter bit was recognized as a 2005 Woelfel Best Mechanical Engineering Award finalist by the ASME International Petroleum Technology Institute. Varel received a merit award for our patent- pending drill-out feature on the bicenter bit.

6. Thank you to all of our customers, prospective customers and suppliers who visited our stand in Houston at the 2005 Offshore Technology Conference. We appreciate your interest in Varel and look forward to working with you in the future.