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Integra brochure
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March 20, 2008

Integra Group and Smith International, Inc. announce joint venture arrangement


Moscow (March 20, 2008) - Integra Group (LSE:INTE) and Smith International, Inc. (NYSE: SII) announced today that they have agreed to form a 50/50 joint venture to supply a wide range of technologically-advanced downhole oilfield service and engineering solutions in Russia and the other countries of the Commonwealth of Independent States (CIS).  The joint venture will offer drilling and completion services to customers throughout the region utilizing downhole tools and technical capabilities provided by Smith Services and supported by the infrastructure, engineering expertise and personnel of Integra Group. Finalization of the joint venture is subject to confirmatory due diligence and relevant approvals, with Closing expected in the third quarter of 2008.

Integra Chief Executive Officer, Felix Lubashevsky, said:

“Through Smith Eurasia, which is part of Integra, we have nearly fifteen years of valuable cooperation with Smith International  – one of the global leaders in the oilfield services market. We are excited that this relationship is now being taken to a new level creating rewarding opportunities for both partners. We are convinced that industry-leading technology of Smith International coupled with Integra’s platform in Russia and the CIS will create an extremely competitive joint venture which will grow substantially in these markets.”

Bryan Dudman, President of the Smith Services business unit of Smith International, Inc., said: “Partnering with Integra gives us a strong presence in the Russia and CIS markets, a region where Smith currently generates about seven percent of its Oilfield segment revenues.  We are seeing a significant amount of investment being made by operators in this region and believe this venture will help us bring significant value to our customers and shareholders.  We are very excited and enthusiastic for the future.”

Notes to editors:

About Integra Group:

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).
About Smith International:

Smith International, Inc. is a leading supplier of premium products and services to the oil and gas exploration and production industry. The Company employs approximately 20,000 full-time personnel and operates through four principal business units – M-I SWACO, Smith Technologies, Smith Services and Wilson.
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