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Exhibit 99.1
 PRESS RELEASE
 
 SMITH INTERNATIONAL, INC.
 
 For Release
  Contact:
    
    Margaret K. DormanChief Financial Officer(281) 443-3370
 SMITH INTERNATIONAL, INC. REPORTS FIRST
QUARTER EARNINGS OF 80 CENTS PER SHARE




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Non-GAAP Financial Measures. Supplementary Data  Schedule III




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SMITH INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
 Three Months EndedMarch 31,
    
    
    December 31,2007
    
    
    2006
    
    
    2006Revenues
    
    $
    2,107,724
    
    
    $
    1,682,121
    
    
    $
    1,998,991Costs and expenses:Costs of revenues
    
    
    1,431,759
    
    
    
    1,155,518
    
    
    
    1,344,549Selling expenses
    
    
    272,333
    
    
    
    221,194
    
    
    
    266,807General and administrative expenses
    
    
    72,504
    
    
    
    68,291
    
    
    
    77,857Total costs and expenses
    
    
    1,776,596
    
    
    
    1,445,003
    
    
    
    1,689,213Operating income
    
    
    331,128
    
    
    
    237,118
    
    
    
    309,778Interest expense
    
    
    18,534
    
    
    
    12,836
    
    
    
    18,159Interest income
    
    
    (764
    )
    
    
    (597
    )
    
    
    (859
    )Income before income taxes and
minority interests
    
    
    313,358
    
    
    
    224,879
    
    
    
    292,478Income tax provision
    
    
    93,099
    
    
    
    72,662
    
    
    
    94,502Minority interests
    
    
    60,101
    
    
    
    45,001
    
    
    
    54,944Net income
    
    $
    160,158
    
    
    $
    107,216
    
    
    $
    143,032Earnings per share:Basic
    
    $
    0.80
    
    
    $
    0.53
    
    
    $
    0.72Diluted
    
    $
    0.80
    
    
    $
    0.53
    
    
    $
    0.71Weighted average shares outstanding:Basic
    
    
    199,980
    
    
    
    200,995
    
    
    
    199,564Diluted
    
    
    201,426
    
    
    
    202,527
    
    
    
    201,381




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SMITH INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 March 31,
    
    
    December 31,2007
    
    
    2006Current Assets:Cash and cash equivalents
    
    $
    93,059
    
    
    $
    80,379Receivables, net
    
    
    1,662,938
    
    
    
    1,592,230Inventories, net
    
    
    1,530,843
    
    
    
    1,457,371Other current assets
    
    
    141,279
    
    
    
    141,047Total current assets
    
    
    3,428,119
    
    
    
    3,271,027Property, Plant and Equipment, net
    
    
    925,954
    
    
    
    887,044Goodwill and Other Assets
    
    
    1,193,738
    
    
    
    1,177,404Total Assets
    
    $
    5,547,811
    
    
    $
    5,335,475Current Liabilities:Short-term borrowings
    
    $
    317,933
    
    
    $
    287,704Accounts payable
    
    
    624,362
    
    
    
    654,215Other current liabilities
    
    
    364,912
    
    
    
    437,549Total current liabilities
    
    
    1,307,207
    
    
    
    1,379,468Long-Term Debt
    
    
    826,617
    
    
    
    800,928Other Long-Term Liabilities
    
    
    291,514
    
    
    
    246,028Minority Interests
    
    
    981,308
    
    
    
    922,114Stockholders Equity
    
    
    2,141,165
    
    
    
    1,986,937Total Liabilities and Stockholders Equity
    
    $
    5,547,811
    
    
    $
    5,335,475




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SMITH INTERNATIONAL, INC.
SUPPLEMENTARY DATA  SCHEDULE I
 Three Months EndedMarch 31,
    
    
    December 31,2007
    
    
    2006
    
    
    2006REVENUE DATAConsolidated:United States
    
    $
    961,504
    
    
    $
    743,311
    
    
    $
    921,326Canada
    
    
    237,139
    
    
    
    268,887
    
    
    
    222,284North America
    
    
    1,198,643
    
    
    
    1,012,198
    
    
    
    1,143,610Latin America
    
    
    148,338
    
    
    
    124,497
    
    
    
    144,804Europe/Africa
    
    
    478,678
    
    
    
    344,371
    
    
    
    457,876Middle East/Asia
    
    
    282,065
    
    
    
    201,055
    
    
    
    252,701Non-North America
    
    
    909,081
    
    
    
    669,923
    
    
    
    855,381Total
    
    $
    2,107,724
    
    
    $
    1,682,121
    
    
    $
    1,998,991Oilfield(a):North America
    
    $
    681,580
    
    
    $
    560,555
    
    
    $
    652,043Latin America
    
    
    143,397
    
    
    
    121,856
    
    
    
    141,821Europe/Africa
    
    
    462,668
    
    
    
    336,192
    
    
    
    446,273Middle East/Asia
    
    
    274,039
    
    
    
    193,005
    
    
    
    245,955Non-North America
    
    
    880,104
    
    
    
    651,053
    
    
    
    834,049Total
    
    $
    1,561,684
    
    
    $
    1,211,608
    
    
    $
    1,486,092BUSINESS UNIT/SEGMENT DATARevenues:M-I SWACO
    
    $
    1,035,084
    
    
    $
    802,550
    
    
    $
    979,520Smith
Technologies(b)
    
    
    244,091
    
    
    
    200,412
    
    
    
    241,122Smith Services(b)
    
    
    282,509
    
    
    
    208,646
    
    
    
    265,450Oilfield
    
    
    1,561,684
    
    
    
    1,211,608
    
    
    
    1,486,092Distribution
    
    
    546,040
    
    
    
    470,513
    
    
    
    512,899Total
    
    $
    2,107,724
    
    
    $
    1,682,121
    
    
    $
    1,998,991Operating Income:Oilfield
    
    $
    311,013
    
    
    $
    219,795
    
    
    $
    289,842Distribution
    
    
    29,235
    
    
    
    26,026
    
    
    
    28,239General corporate
    
    
    (9,120
    )
    
    
    (8,703
    )
    
    
    (8,303
    )Total
    
    $
    331,128
    
    
    $
    237,118
    
    
    $
    309,778
 NOTE (a): Excludes revenues from the Wilson Distribution operations.
 NOTE
(b): Due to the formation of the Smith Borehole
Enlargement (SBE) group during the first quarter of 2007,
certain prior period revenues were reclassified to conform with the
current presentation.




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SMITH INTERNATIONAL, INC.
SUPPLEMENTARY DATA  SCHEDULE II
 Three Months EndedMarch 31,
    
    
    December 31,2007
    
    
    2006
    
    
    2006OTHER DATAOperating Income(c):Smith ownership interest
    
    $
    257,502
    
    
    $
    181,193
    
    
    $
    241,869Minority partner ownership interest
    
    
    73,626
    
    
    
    55,925
    
    
    
    67,909Total
    
    $
    331,128
    
    
    $
    237,118
    
    
    $
    309,778Depreciation and Amortization(c):Smith ownership interest
    
    $
    33,635
    
    
    $
    25,992
    
    
    $
    32,885Minority partner ownership interest
    
    
    10,745
    
    
    
    7,271
    
    
    
    10,562Total
    
    $
    44,380
    
    
    $
    33,263
    
    
    $
    43,447Gross
Capital Spending(c):Smith ownership interest
    
    $
    61,092
    
    
    $
    40,866
    
    
    $
    78,978Minority partner ownership interest
    
    
    15,741
    
    
    
    15,912
    
    
    
    30,668Total
    
    $
    76,833
    
    
    $
    56,778
    
    
    $
    109,646Net
Capital
Spending(c)(d):Smith ownership interest
    
    $
    48,303
    
    
    $
    34,093
    
    
    $
    69,540Minority partner ownership interest
    
    
    13,857
    
    
    
    15,060
    
    
    
    30,012Total
    
    $
    62,160
    
    
    $
    49,153
    
    
    $
    99,552
 NOTE
(c): The Company derives a significant portion of its revenues and earnings from M-I SWACO and other joint venture operations. Consolidated
operating income, depreciation and amortization and capital spending amounts have been separated between the Companys portion and the minority
partners portion in order to aid in analyzing the Companys financial results.
 NOTE
(d): Net capital spending reflects the impact of proceeds from lost-in-hole and fixed asset equipment sales.




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SMITH INTERNATIONAL, INC.
SUPPLEMENTARY DATA  SCHEDULE III
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
 Three Months EndedMarch 31,
    
    
    December 31,2007
    
    
    2006
    
    
    2006Consolidated Net Income:GAAP consolidated net income
    
    $
    160,158
    
    
    $
    107,216
    
    
    $
    143,032R&D tax credit and other tax adjustments
    
    
    (7,467
    )
    
    
    
    
    
    
    Non-GAAP consolidated net income
    
    $
    152,691
    
    
    $
    107,216
    
    
    $
    143,032Diluted Earnings per Share:GAAP diluted earnings per share
    
    $
    0.80
    
    
    $
    0.53
    
    
    $
    0.71R&D tax credit and other tax adjustments
    
    
    (0.04
    )
    
    
    
    
    
    
    Non-GAAP diluted earnings per share
    
    $
    0.76
    
    
    $
    0.53
    
    
    $
    0.71