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(Grant Prideco Logo)
    
    NEWS RELEASE
 FOR IMMEDIATE RELEASE
 Investor Relations Contacts:
 GRANT PRIDECO REPORTS EPS OF $1.01 PER SHARE
ON A 20% REVENUE INCREASE
   Operating Income Margins Increase
 ®
 1




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Other Items
    SEGMENT RESULTS
 Drilling Products and Services
  ReedHycalog
 ®
 Tubular Technology and Services
  2




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Corporate and Other
  OUTLOOK
   Conference Call
    3




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GRANT PRIDECO, INC.
STATEMENTS OF OPERATIONS
(In thousands, except per share data)
 Three Months Ended March 31,2007
    
    
    2006(Unaudited)Revenues
    
    $
    496,463
    
    
    $
    414,425Operating Expenses:Cost of sales
    
    
    254,078
    
    
    
    228,529Sales and marketing
    
    
    5,587
    
    
    
    35,980General and administrative
    
    
    33,754
    
    
    
    27,840Research and engineering
    
    
    10,023
    
    
    
    7,696343,442
    
    
    
    300,045Operating Income
    
    
    153,021
    
    
    
    114,380Interest Expense
    
    
    (5,069
    )
    
    
    (3,831
    )Other Expense, Net
    
    
    (552
    )
    
    
    (260
    )Equity Income in Unconsolidated Affiliate
    
    
    44,613
    
    
    
    27,349Income Before Income Taxes and Minority Interests
    
    
    192,013
    
    
    
    137,638Income Tax Provision
    
    
    (57,957
    )
    
    
    (43,064
    )Income Before Minority Interests
    
    
    134,056
    
    
    
    94,574Minority Interests
    
    
    (2,507
    )
    
    
    (2,144
    )Net Income
    
    $
    131,549
    
    
    $
    92,430Basic Net Income Per Share
    
    $
    1.03
    
    
    $
    0.70Basic Weighted Average Shares Outstanding
    
    
    128,085
    
    
    
    131,388Diluted Net Income Per Share
    
    $
    1.01
    
    
    $
    0.69Diluted Weighted Average Shares Outstanding
    
    
    129,930
    
    
    
    133,929Cash Flow Data:Depreciation and amortization
    
    $
    14,689
    
    
    $
    12,099Cash provided by operating activities
    
    
    58,765
    
    
    
    63,536Cash used in investing activities
    
    
    (30,615
    )
    
    
    (9,733
    )Cash used in financing activities
    
    
    (11,539
    )
    
    
    (22,732
    )Capital expenditures (a)
    
    
    27,763
    
    
    
    9,967
 March 31,
    
    
    December 31,2007
    
    
    2006(Unaudited)Balance Sheet Data:Total assets
    
    $
    2,156,449
    
    
    $
    2,022,067Total debt
    
    
    269,547
    
    
    
    245,852Total liabilities
    
    
    695,312
    
    
    
    659,184Stockholders equity
    
    
    1,461,137
    
    
    
    1,362,883Backlog at Period End (Unaudited)
    
    $
    1,237,223
    
    
    $
    ,181,952
 
 (a)
    
    Capital expenditures for property, plant and equipment excludes acquisition of businesses. 4




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GRANT PRIDECO, INC.
SUPPLEMENTAL QUARTERLY FINANCIAL INFORMATION
 Three Months Ended March 31,2007
    
    
    2006(Unaudited)Revenues:Drilling Products and Services
    
    $
    275,948
    
    
    $
    194,259ReedHycalog
    
    
    151,905
    
    
    
    116,791Tubular Technology and Services
    
    
    67,172
    
    
    
    103,273Corporate and Other
    
    
    1,438
    
    
    
    102$
    496,463
    
    
    $
    414,425Operating Income (Loss):Drilling Products and Services
    
    $
    112,652
    
    
    $
    65,012ReedHycalog
    
    
    45,801
    
    
    
    35,558Tubular Technology and Services
    
    
    13,067
    
    
    
    31,243Corporate and Other
    
    
    (18,499
    )
    
    
    (17,433
    )$
    153,021
    
    
    $
    114,380Depreciation and Amortization:Drilling Products and Services
    
    $
    3,633
    
    
    $
    3,300ReedHycalog
    
    
    6,629
    
    
    
    4,089Tubular Technology and Services
    
    
    2,568
    
    
    
    3,098Corporate and Other
    
    
    1,859
    
    
    
    1,612$
    14,689
    
    
    $
    12,099Capital Expenditures for Property,
Plant and Equipment:Drilling Products and Services
    
    $
    8,871
    
    
    $
    4,495ReedHycalog
    
    
    10,686
    
    
    
    2,194Tubular Technology and Services
    
    
    158
    
    
    
    1,938Corporate and Other
    
    
    8,048
    
    
    
    1,340$
    27,763
    
    
    $
    9,967
  5