SOURCE: Grifco International, Inc.

July 27, 2005 08:30 ET

Grifco International Delivers Rotorjet Nozzle System; Anticipates $3.2 Million Annual Revenue

HOUSTON, TX -- (MARKET WIRE) -- July 27, 2005 -- Grifco International, Inc. (OTC: GFCI), a provider of oil and gas services equipment to the worldwide oil and gas industry, has taken delivery of the first shipment of its Rotorjet Nozzle Systems, an evolutionary variable speed controlled motor for enhancing well production. The Rotorjet has experienced a rapid promotion to production status after a series of successful tests.

Rotorjet Nozzle System Testing and Production Phase

In the fourth quarter of 2004, Coil Tubing Technology (CTT), a wholly owned subsidiary of Grifco International, Inc., began testing a variable speed controlled motor, known to the oil and gas industry as the Rotorjet Nozzle System. Tests were quite successful inside 2 3/8" and 2 7/8" tubing, the diameters which comprise approximately 70% of the domestic United States production tubing strings. Subsequent testing by Westport Energy utilizing the Rotorjet to clean across perforations greatly enhanced well production, due primarily to the cleaning action and jet velocities imparted by the nozzle system beyond the tubing wall, hydraulically cleaning into the perforations.

Based on the success of the Rotorjet field tests, Grifco International began production in the first quarter of 2005. Today, CTT has taken delivery of its first shipment of 22 Rotorjet Nozzle Systems. With the delivery of the brand new Rotorjet nozzle systems, CTT will market a superior cleaning system to the production workover industry for hydraulically cleaning tubulars and perforated production zones, resulting in enhancing well production.

Jim Dial, President and CEO of Grifco International, Inc., stated, "This marks the beginning of the Rotorjet era for Grifco International and the workover industry. The Rotorjet Nozzle System, developed by Coil Tubing Technologies, carries on the tradition of evolutionary tools from Grifco International and CTT."

Additionally, Baker Oil Tools and Specialty Tool Services have taken receipt of Rotorjet nozzle systems in five locations, pressing the Rotorjet into service on July 25th, 2005. CTT has received 10 additional Rotorjets into the existing fleet; several customers, including British Petroleum and Baker Oil Tools, have requested and received Rotorjets for immediate utilization.

The Rotorjet fleet is projected to continue to increase by ten units per month for the remainder of fiscal 2005, with anticipated revenues from this product line to be $3.2 million annualized. Grifco expects to release an update shortly on the leasing and shipping schedule of our Jet Motor units.

Grifco International is a leading provider of oil and gas services equipment, specializing in the conception, architecture, and development of tools for the coil tubing, wire line, and snubbing industry throughout the US, China, Mexico and South America. Grifco's patented products are known and used throughout the world. In addition to our patented tools, Grifco designs and manufactures over 350 products for the Oil and Gas industry with a clientele boasting the biggest names in the business, including Halliburton, Exxon, and Schlumberger. Please visit

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The Company cautions the assumptions, expectations, projections, intentions, or beliefs about future events may, and often do, vary from actual results and the differences can be material. Some of the key factors which could cause actual results to vary from those the Company expects include changes in natural gas and oil prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as our ability to access them, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting our business. More information about the risks and uncertainties relating to the Company's forward-looking statements are found in our SEC filings.

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