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FOR IMMEDIATE RELEASE
    
    Investor Contact: David Tucker
    
    281-406-2370August 1, 2007 (Revised 8-9-07)
 Parker Drilling Second Quarter 2007 Net Income Increases 23 Percent
  
    
    Net Income increased 23 percent over the second quarter 2006;
    
    Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 13
percent over the second quarter 2006;
    
    Deep drilling barge rigs experienced record dayrates and high utilization;
    
    International land rig utilization continued to increase;
    
    New convertible debt offering will reduce cash interest expense.




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PARKER DRILLING COMPANY AND SUBSIDIARIES
 June 30, 2007
    
    
    December 31, 2006(Dollars in Thousands)ASSETSCURRENT ASSETSCash and Cash Equivalents
    
    $
    63,148
    
    
    $
    92,203Marketable Securities
    
    
    39,200
    
    
    
    62,920Accounts and Notes Receivable, Net
    
    
    137,642
    
    
    
    112,359Rig Materials and Supplies
    
    
    21,075
    
    
    
    15,000Deferred Costs
    
    
    9,343
    
    
    
    6,662Deferred income taxes
    
    
    14,774
    
    
    
    17,307Other Current Assets
    
    
    31,100
    
    
    
    11,123TOTAL CURRENT ASSETS
    
    
    316,282
    
    
    
    317,574PROPERTY, PLANT AND EQUIPMENT, NET
    
    
    525,872
    
    
    
    435,473OTHER ASSETSGoodwill
    
    
    100,315
    
    
    
    100,315Deferred Taxes
    
    
    25,249
    
    
    
    13,405Other Assets
    
    
    31,419
    
    
    
    34,534TOTAL OTHER ASSETS
    
    
    156,983
    
    
    
    148,254TOTAL ASSETS
    
    $
    999,137
    
    
    $
    901,301LIABILITIES AND STOCKHOLDERS EQUITYCURRENT LIABILITIESCurrent Portion of Long-Term Debt
    
    $
    
    
    
    $
    Accounts Payable and Accrued Liabilities
    
    
    101,704
    
    
    
    101,903TOTAL CURRENT LIABILITIES
    
    
    101,704
    
    
    
    101,903LONG-TERM DEBT
    
    
    329,044
    
    
    
    329,368LONG-TERM DEFERRED TAXES
    
    
    23,008
    
    
    
    OTHER LIABILITIES
    
    
    73,964
    
    
    
    10,931STOCKHOLDERS EQUITY
    
    
    471,417
    
    
    
    459,099TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    999,137
    
    
    $
    901,301Current Ratio
    
    
    3.11
    
    
    
    3.12Total Long-Term Debt as a Percent of Capitalization
    
    
    41
    %
    
    
    42
    %Book Value Per Common Share
    
    $
    4.18
    
    
    $
    4.17




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PARKER DRILLING COMPANY AND SUBSIDIARIES
 Three Months Ended June 30,
    
    
    Six Months Ended June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006(Dollars in Thousands)
    
    
    (Dollars in Thousands)DRILLING AND RENTAL REVENUESU.S. Drilling
    
    $
    57,651
    
    
    $
    42,697
    
    
    $
    119,275
    
    
    $
    82,950International Drilling
    
    
    61,196
    
    
    
    72,972
    
    
    
    120,870
    
    
    
    152,802Rental Tools
    
    
    31,430
    
    
    
    30,319
    
    
    
    61,405
    
    
    
    57,570TOTAL DRILLING AND RENTAL REVENUES
    
    
    150,277
    
    
    
    145,988
    
    
    
    301,550
    
    
    
    293,322DRILLING AND RENTAL OPERATING EXPENSESU.S. Drilling
    
    
    24,616
    
    
    
    19,814
    
    
    
    51,377
    
    
    
    37,284International Drilling
    
    
    50,617
    
    
    
    57,854
    
    
    
    96,400
    
    
    
    119,226Rental Tools
    
    
    12,521
    
    
    
    10,969
    
    
    
    23,684
    
    
    
    21,439Depreciation and Amortization
    
    
    19,642
    
    
    
    17,715
    
    
    
    37,701
    
    
    
    34,672TOTAL DRILLING AND RENTAL OPERATING EXPENSES
    
    
    107,396
    
    
    
    106,352
    
    
    
    209,162
    
    
    
    212,621DRILLING AND RENTAL OPERATING INCOME
    
    
    42,881
    
    
    
    39,636
    
    
    
    92,388
    
    
    
    80,701General and Administrative Expense
    
    
    (6,246
    )
    
    
    (7,575
    )
    
    
    (12,134
    )
    
    
    (15,269
    )Gain on Disposition of Assets, Net
    
    
    269
    
    
    
    2,125
    
    
    
    16,673
    
    
    
    2,573TOTAL OPERATING INCOME
    
    
    36,904
    
    
    
    34,186
    
    
    
    96,927
    
    
    
    68,005OTHER INCOME AND (EXPENSE)Interest Expense
    
    
    (5,985
    )
    
    
    (8,199
    )
    
    
    (12,315
    )
    
    
    (17,300
    )Change in Fair Value of Derivative Position
    
    
    (28
    )
    
    
    382
    
    
    
    (409
    )
    
    
    1,195Interest Income
    
    
    1,712
    
    
    
    2,039
    
    
    
    3,496
    
    
    
    3,445Other Income (Expense)  Net
    
    
    70
    
    
    
    47
    
    
    
    (923
    )
    
    
    (936
    )TOTAL OTHER INCOME AND (EXPENSE)
    
    
    (4,231
    )
    
    
    (5,731
    )
    
    
    (10,151
    )
    
    
    (13,596
    )INCOME BEFORE INCOME TAXES
    
    
    32,673
    
    
    
    28,455
    
    
    
    86,776
    
    
    
    54,409INCOME TAX EXPENSECurrent Tax Expense
    
    
    6,613
    
    
    
    (5,563
    )
    
    
    28,625
    
    
    
    Deferred Tax Expense
    
    
    9,200
    
    
    
    20,257
    
    
    
    11,297
    
    
    
    29,190TOTAL INCOME TAX EXPENSE
    
    
    15,813
    
    
    
    14,694
    
    
    
    39,922
    
    
    
    29,190NET INCOME
    
    $
    16,860
    
    
    $
    13,761
    
    
    $
    46,854
    
    
    $
    25,219EARNINGS PER SHARE  BASICNet Income
    
    $
    0.15
    
    
    $
    0.13
    
    
    $
    0.43
    
    
    $
    0.24EARNINGS PER SHARE  DILUTEDNet Income
    
    $
    0.15
    
    
    $
    0.13
    
    
    $
    0.43
    
    
    $
    0.24AVERAGE COMMON SHARES OUTSTANDINGBasic
    
    
    109,740,528
    
    
    
    107,082,784
    
    
    
    108,760,980
    
    
    
    105,783,424Diluted
    
    
    110,842,121
    
    
    
    108,363,036
    
    
    
    109,968,329
    
    
    
    107,283,318




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PARKER DRILLING COMPANY AND SUBSIDIARIES
 Three Months EndedJune 30,
    
    
    March 31,2007
    
    
    2006
    
    
    2006(Dollars in Thousands)DRILLING AND RENTAL REVENUESU.S. Offshore Drilling
    
    $
    54,316
    
    
    $
    42,697
    
    
    $
    55,152U.S. Land Drilling
    
    
    3,335
    
    
    
    
    
    
    
    6,472International Land Drilling
    
    
    52,268
    
    
    
    59,028
    
    
    
    51,875International Offshore Drilling
    
    
    8,928
    
    
    
    13,944
    
    
    
    7,799Rental Tools
    
    
    31,430
    
    
    
    30,319
    
    
    
    29,975Total Drilling and Rental Revenues
    
    
    150,277
    
    
    
    145,988
    
    
    
    151,273DRILLING AND RENTAL OPERATING EXPENSESU.S. Offshore Drilling
    
    
    21,551
    
    
    
    19,814
    
    
    
    22,136U.S. Land Drilling
    
    
    3,065
    
    
    
    
    
    
    
    4,625International Land Drilling
    
    
    45,019
    
    
    
    46,350
    
    
    
    40,694International Offshore Drilling
    
    
    5,598
    
    
    
    11,504
    
    
    
    5,089Rental Tools
    
    
    12,521
    
    
    
    10,969
    
    
    
    11,163Drilling and Rental Operating Expenses
    
    
    87,754
    
    
    
    88,637
    
    
    
    83,707DRILLING AND RENTAL OPERATING INCOMEU.S. Offshore Drilling
    
    
    32,765
    
    
    
    22,883
    
    
    
    33,016U.S. Land Drilling
    
    
    270
    
    
    
    
    
    
    
    1,847International Land Drilling
    
    
    7,249
    
    
    
    12,678
    
    
    
    11,181International Offshore Drilling
    
    
    3,330
    
    
    
    2,440
    
    
    
    2,710Rental Tools
    
    
    18,909
    
    
    
    19,350
    
    
    
    18,812Depreciation and Amortization
    
    
    (19,642
    )
    
    
    (17,715
    )
    
    
    (18,059
    )Total Drilling and Rental Operating Income
    
    
    42,881
    
    
    
    39,636
    
    
    
    49,507General and Administrative Expense
    
    
    (6,246
    )
    
    
    (7,575
    )
    
    
    (5,888
    )Gain on Disposition of Assets, Net
    
    
    269
    
    
    
    2,125
    
    
    
    16,404TOTAL OPERATING INCOME
    
    $
    36,904
    
    
    $
    34,186
    
    
    $
    60,023
 Marketable Rig Count Summary
As of June 30, 2007
 TotalU.S. Land Rigs
    
    
    1U.S. Gulf of Mexico Barge RigsWorkover
    
    
    3Intermediate
    
    
    3Deep
    
    
    10Total U.S. Gulf of Mexico Barge Rigs
    
    
    16International Land RigsAsia Pacific
    
    
    9Africa  Middle East
    
    
    3Latin America
    
    
    7CIS
    
    
    8Total International Land Rigs
    
    
    27International Barge RigsMexico
    
    
    1Caspian Sea
    
    
    1Total International Barge Rigs
    
    
    2Total Marketable Rigs
    
    
    46




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Three Months EndingJune 30,
    
    
    March 31,
    
    
    December 31,
    
    
    September 30,
    
    
    June 30,
    
    
    March 31,
    
    
    December 31,
    
    
    September 30,
    
    
    June 30,2007
    
    
    2007
    
    
    2006
    
    
    2006
    
    
    2006
    
    
    2006
    
    
    2005
    
    
    2005
    
    
    2005Income from Continuing Operations
    
    $
    16,860
    
    
    $
    29,994
    
    
    $
    37,168
    
    
    $
    18,639
    
    
    $
    13,761
    
    
    $
    11,458
    
    
    $
    56,707
    
    
    $
    18,073
    
    
    $
    20,194Adjustments:Income Tax Expense (Benefit)
    
    
    15,813
    
    
    
    24,109
    
    
    
    (5,954
    )
    
    
    13,173
    
    
    
    14,694
    
    
    
    14,496
    
    
    
    (39,087
    )
    
    
    2,165
    
    
    
    3,486Total Other (Income) and Expense
    
    
    4,231
    
    
    
    5,920
    
    
    
    3,554
    
    
    
    8,741
    
    
    
    5,731
    
    
    
    7,865
    
    
    
    10,251
    
    
    
    9,627
    
    
    
    15,140Gain on Disposition of Assets, Net
    
    
    (269
    )
    
    
    (16,404
    )
    
    
    (672
    )
    
    
    (4,328
    )
    
    
    (2,125
    )
    
    
    (448
    )
    
    
    (3,185
    )
    
    
    (5,943
    )
    
    
    (15,898
    )Depreciation and Amortization
    
    
    19,642
    
    
    
    18,059
    
    
    
    17,605
    
    
    
    16,993
    
    
    
    17,715
    
    
    
    16,957
    
    
    
    16,619
    
    
    
    16,563
    
    
    
    17,146Provision for Reduction in Carrying Value
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,584
    
    
    
    2,300
    
    
    
    Adjusted EBITDA
    
    $
    56,277
    
    
    $
    61,678
    
    
    $
    51,701
    
    
    $
    53,218
    
    
    $
    49,776
    
    
    $
    50,328
    
    
    $
    43,889
    
    
    $
    42,785
    
    
    $
    40,068