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Exhibit 99.1
 NEWS RELEASE
 
  Contact:
    
    Margaret K. Dorman
Chief Financial Officer
(281) 443-3370
 SMITH INTERNATIONAL, INC. REPORTS
QUARTERLY EARNINGS OF 83 CENTS PER SHARE




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SMITH INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
 Three Months EndedSeptember 30,
    
    
    June 30,2007
    
    
    2006
    
    
    2007Revenues
    
    $
    2,245,059
    
    
    $
    1,914,184
    
    
    $
    2,114,373Costs and expenses:Costs of revenues
    
    
    1,516,153
    
    
    
    1,295,971
    
    
    
    1,417,827Selling expenses
    
    
    300,084
    
    
    
    253,569
    
    
    
    287,162General and administrative expenses
    
    
    78,485
    
    
    
    76,919
    
    
    
    76,935Total costs and expenses
    
    
    1,894,722
    
    
    
    1,626,459
    
    
    
    1,781,924Operating income
    
    
    350,337
    
    
    
    287,725
    
    
    
    332,449Interest expense
    
    
    17,103
    
    
    
    17,287
    
    
    
    17,605Interest income
    
    
    (1,152
    )
    
    
    (830
    )
    
    
    (895
    )Income before income taxes and
minority interests
    
    
    334,386
    
    
    
    271,268
    
    
    
    315,739Income tax provision
    
    
    106,579
    
    
    
    88,600
    
    
    
    100,891Minority interests
    
    
    60,974
    
    
    
    49,743
    
    
    
    61,795Net income
    
    $
    166,833
    
    
    $
    132,925
    
    
    $
    153,053Earnings per share:Basic
    
    $
    0.83
    
    
    $
    0.66
    
    
    $
    0.76Diluted
    
    $
    0.83
    
    
    $
    0.66
    
    
    $
    0.76Weighted average shares outstanding:Basic
    
    
    200,070
    
    
    
    200,009
    
    
    
    200,499Diluted
    
    
    202,078
    
    
    
    201,811
    
    
    
    202,097




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SMITH INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
 Nine Months EndedSeptember 30,2007
    
    
    2006Revenues
    
    $
    6,467,156
    
    
    $
    5,334,568Costs and expenses:Costs of revenues
    
    
    4,365,739
    
    
    
    3,644,739Selling expenses
    
    
    859,579
    
    
    
    703,018General and administrative expenses
    
    
    227,924
    
    
    
    216,508Total costs and expenses
    
    
    5,453,242
    
    
    
    4,564,265Operating income
    
    
    1,013,914
    
    
    
    770,303Interest expense
    
    
    53,242
    
    
    
    44,808Interest income
    
    
    (2,811
    )
    
    
    (2,123
    )Income before income taxes and
minority interests
    
    
    963,483
    
    
    
    727,618Income tax provision
    
    
    300,569
    
    
    
    232,172Minority interests
    
    
    182,870
    
    
    
    136,472Net income
    
    $
    480,044
    
    
    $
    358,974Earnings per share:Basic
    
    $
    2.40
    
    
    $
    1.79Diluted
    
    $
    2.38
    
    
    $
    1.78Weighted average shares outstanding:Basic
    
    
    200,184
    
    
    
    200,484Diluted
    
    
    201,891
    
    
    
    202,158




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SMITH INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 September 30,
    
    
    December 31,2007
    
    
    2006Current Assets:Cash and cash equivalents
    
    $
    98,716
    
    
    $
    80,379Receivables, net
    
    
    1,770,691
    
    
    
    1,592,230Inventories, net
    
    
    1,621,179
    
    
    
    1,457,371Other current assets
    
    
    173,462
    
    
    
    141,047Total current assets
    
    
    3,664,048
    
    
    
    3,271,027Property, Plant and Equipment, net
    
    
    1,037,896
    
    
    
    887,044Goodwill and Other Assets
    
    
    1,220,404
    
    
    
    1,177,404Total Assets
    
    $
    5,922,348
    
    
    $
    5,335,475Current Liabilities:Short-term borrowings
    
    $
    153,701
    
    
    $
    287,704Accounts payable
    
    
    645,142
    
    
    
    654,215Other current liabilities
    
    
    380,362
    
    
    
    437,549Total current liabilities
    
    
    1,179,205
    
    
    
    1,379,468Long-Term Debt
    
    
    931,559
    
    
    
    800,928Other Long-Term Liabilities
    
    
    302,431
    
    
    
    246,028Minority Interests
    
    
    1,073,116
    
    
    
    922,114Stockholders Equity
    
    
    2,436,037
    
    
    
    1,986,937Total Liabilities and Stockholders Equity
    
    $
    5,922,348
    
    
    $
    5,335,475




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SMITH INTERNATIONAL, INC.
SUPPLEMENTARY DATA  SCHEDULE I
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    June 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2007
    
    
    2006REVENUE DATAConsolidated:United States
    
    $
    1,017,936
    
    
    $
    905,002
    
    
    $
    987,046
    
    
    $
    2,966,486
    
    
    $
    2,463,403Canada
    
    
    195,330
    
    
    
    221,953
    
    
    
    138,703
    
    
    
    571,172
    
    
    
    669,004North America
    
    
    1,213,266
    
    
    
    1,126,955
    
    
    
    1,125,749
    
    
    
    3,537,658
    
    
    
    3,132,407Latin America
    
    
    208,193
    
    
    
    139,872
    
    
    
    173,213
    
    
    
    529,744
    
    
    
    399,040Europe/Africa
    
    
    534,012
    
    
    
    418,845
    
    
    
    512,335
    
    
    
    1,525,025
    
    
    
    1,147,683Middle East/Asia
    
    
    289,588
    
    
    
    228,512
    
    
    
    303,076
    
    
    
    874,729
    
    
    
    655,438Non-North America
    
    
    1,031,793
    
    
    
    787,229
    
    
    
    988,624
    
    
    
    2,929,498
    
    
    
    2,202,161Total
    
    $
    2,245,059
    
    
    $
    1,914,184
    
    
    $
    2,114,373
    
    
    $
    6,467,156
    
    
    $
    5,334,568Oilfield(a):North America
    
    $
    690,115
    
    
    $
    644,897
    
    
    $
    661,933
    
    
    $
    2,033,628
    
    
    $
    1,762,075Latin America
    
    
    204,625
    
    
    
    137,582
    
    
    
    169,938
    
    
    
    517,960
    
    
    
    390,445Europe/Africa
    
    
    508,549
    
    
    
    407,574
    
    
    
    487,503
    
    
    
    1,458,720
    
    
    
    1,116,864Middle East/Asia
    
    
    282,398
    
    
    
    222,881
    
    
    
    295,541
    
    
    
    851,978
    
    
    
    632,262Non-North America
    
    
    995,572
    
    
    
    768,037
    
    
    
    952,982
    
    
    
    2,828,658
    
    
    
    2,139,571Total
    
    $
    1,685,687
    
    
    $
    1,412,934
    
    
    $
    1,614,915
    
    
    $
    4,862,286
    
    
    $
    3,901,646BUSINESS UNIT/SEGMENT DATARevenues:M-I SWACO
    
    $
    1,110,542
    
    
    $
    942,191
    
    
    $
    1,086,524
    
    
    $
    3,232,150
    
    
    $
    2,593,875Smith Technologies(b)
    
    
    259,104
    
    
    
    228,765
    
    
    
    248,294
    
    
    
    751,489
    
    
    
    643,494Smith Services(b)
    
    
    316,041
    
    
    
    241,978
    
    
    
    280,097
    
    
    
    878,647
    
    
    
    664,277Oilfield
    
    
    1,685,687
    
    
    
    1,412,934
    
    
    
    1,614,915
    
    
    
    4,862,286
    
    
    
    3,901,646Distribution
    
    
    559,372
    
    
    
    501,250
    
    
    
    499,458
    
    
    
    1,604,870
    
    
    
    1,432,922Total
    
    $
    2,245,059
    
    
    $
    1,914,184
    
    
    $
    2,114,373
    
    
    $
    6,467,156
    
    
    $
    5,334,568Operating Income:Oilfield
    
    $
    336,482
    
    
    $
    270,710
    
    
    $
    322,940
    
    
    $
    970,435
    
    
    $
    722,453Distribution
    
    
    24,533
    
    
    
    25,359
    
    
    
    20,031
    
    
    
    73,799
    
    
    
    73,591General corporate
    
    
    (10,678
    )
    
    
    (8,344
    )
    
    
    (10,522
    )
    
    
    (30,320
    )
    
    
    (25,741
    )Total
    
    $
    350,337
    
    
    $
    287,725
    
    
    $
    332,449
    
    
    $
    1,013,914
    
    
    $
    770,303
 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 Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    June 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2007
    
    
    2006OTHER DATAOperating Income(c):Smith ownership interest
    
    $
    274,390
    
    
    $
    225,315
    
    
    $
    257,990
    
    
    $
    789,883
    
    
    $
    598,123Minority partner ownership interest
    
    
    75,947
    
    
    
    62,410
    
    
    
    74,459
    
    
    
    224,031
    
    
    
    172,180Total
    
    $
    350,337
    
    
    $
    287,725
    
    
    $
    332,449
    
    
    $
    1,013,914
    
    
    $
    770,303Depreciation and Amortization(c):Smith ownership interest
    
    $
    37,828
    
    
    $
    28,953
    
    
    $
    36,152
    
    
    $
    107,615
    
    
    $
    82,054Minority partner ownership interest
    
    
    11,686
    
    
    
    9,359
    
    
    
    11,415
    
    
    
    33,846
    
    
    
    24,883Total
    
    $
    49,514
    
    
    $
    38,312
    
    
    $
    47,567
    
    
    $
    141,461
    
    
    $
    106,937Gross Capital Spending(c):Smith ownership interest
    
    $
    61,518
    
    
    $
    61,015
    
    
    $
    71,965
    
    
    $
    194,575
    
    
    $
    145,444Minority partner ownership interest
    
    
    18,924
    
    
    
    23,844
    
    
    
    19,290
    
    
    
    53,955
    
    
    
    53,380Total
    
    $
    80,442
    
    
    $
    84,859
    
    
    $
    91,255
    
    
    $
    248,530
    
    
    $
    198,824Net Capital Spending(c) (d):Smith ownership interest
    
    $
    51,989
    
    
    $
    51,879
    
    
    $
    63,797
    
    
    $
    164,089
    
    
    $
    121,883Minority partner ownership interest
    
    
    18,277
    
    
    
    23,138
    
    
    
    18,419
    
    
    
    50,553
    
    
    
    51,292Total
    
    $
    70,266
    
    
    $
    75,017
    
    
    $
    82,216
    
    
    $
    214,642
    
    
    $
    173,175
 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.