Integra brochure
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March 17, 2008

Integra Group forms oil and gas equipment service company


Moscow, 17 March 2008. Integra Group (LSE:INTE), a leading Russian independent provider of onshore oilfield services, announces today the creation of Integra-MashService, a newly incorporated subsidiary which will service and provide maintenance of oil and gas equipment. Integra-MashService was formed as the result of the expansion of service subdivisions of Uralmash-Burovoe Oborudovanie (Yekaterinburg), a key part of Integra’s equipment manufacturing segment.

Integra-MashService will provide major overhauls, modernization, safety expertise and technical diagnostics of drilling equipment. Currently, Integra already services drilling equipment in close proximity to the oil and gas producing provinces through its subsidiary Orenburgtekhservis.

Integra’s management maintains a very positive outlook for the oil and gas equipment service industry. Up to 70% of Russia’s drilling equipment is out of date while the increasing demand for drilling rigs due to the growth of drilling volumes still remains to a great extent unsatisfied. Oil and gas producers are thus looking to overhaul their existing aging rig fleets which require substantial repairs, modernization, spare parts and technical maintenance.
Commenting on the formation of Integra-MashService Vitaly Tkachev, Integra Group’s Executive Vice president for equipment manufacturing and President of Uralmash-VNIIBT said:

“Servicing of oil and gas equipment is a very promising business as depreciation levels of drilling equipment in Russia have created significant levels of deferred demand from our Customers. The creation of a specialized service enterprise will increase the overall profitability of our equipment manufacturing division and create a stable pipeline of orders. We will also be able to offer integrated manufacturing solutions to our customers, which would entail not only the production of drilling rigs, but their subsequent maintenance. In addition, Uralmash-Burovoe oborudovanie’s 60-year experience will provide us with a number of important competitive advantages over other players in the oil and gas equipment manufacturing market.”
Notes to editors:

Integra Group is a leading Russian independent provider of onshore oilfield services and is also a leading manufacturer in the Russian Federation of drilling rigs with heavy lifting capacity, cementing equipment and certain specialized equipment used in the exploration, development and production of oil and gas.

Integra Group operates in the drilling, workover, seismic and geophysics sectors and manufactures oilfield services equipment.  Integra has oilfield services operations in all major oil and gas producing regions in Russia and in many other CIS countries. The company’s customer base includes major Russian and international oil and gas companies operating in Russia and CIS.

Established in March 2004, Integra Group has, through 16 strategic acquisitions, become one of the leading companies in the oilfield services and equipment manufacturing sectors of the Russian market and employs approximately 20 000 people.

Since February 27, 2007 Integra Group has been traded on the London Stock Exchange (symbol: INTE).
Forward looking statements: These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.
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Contacts
Integra Group 

Andrei Machanskis Head of Investor Relations Tel. +7 495 933 0621

amachanskis@integra.ru

Alla Sapun
Press Secretary
Tel. +7 495 933 0621

asapun@integra.ru

Financial Dynamics 

Edward Westropp London Tel. +44 20 7269 7170

Edward.Westropp@fd.com

Leonid Solovyev

Moscow

Tel. +7 495 795 0623

Leonid.Solovyev@fd.com