SOURCE: Flotek Industries, Inc.

August 22, 2006 18:57 ET

Flotek Industries, Inc. Terminates Acquisition Negotiations and Schedules 2nd Quarter Earnings Call

HOUSTON, TX -- (MARKET WIRE) -- August 22, 2006 -- Flotek Industries, Inc. (AMEX: FTK) announced it has terminated negotiations on a potential acquisition in the downhole drilling tool industry. The Company had discussed the possible acquisition at EnerCom's Oilservice Conference IV on February 16, 2006 and in an interview given on May 15, 2006 to Alan Elliott of Investor's Business Daily. No termination fees are payable by either company.

Jerry D. Dumas, Sr., Chairman and Chief Executive Officer, said, "Our companies could not reach an agreement that did not impose an onerous debt burden on the combined entity or that provided sufficient accretion to our existing shareholders. We remain focused on strategic acquisitions and are continually evaluating opportunities to expand the Company's geographic footprint and product offerings. Our business operations and prospects for future revenue remain strong; therefore, we are confident in our performance projections and reaffirm our earnings guidance of $1.35 to $1.45 basic earnings per share for the full year."

Flotek Industries, Inc. will hold a conference call to discuss the second quarter 2006 financial results on Thursday, August 24, 2006 at 2:00 PM CDT.

   Date & Time:         Thursday, August 24, 2006
                        2:00 PM CDT (3:00 PM EDT)

   Dial-In Number:      888-217-1175 (U.S. & Canada)
                        706-758-9494 (International)
                        ID 5051140
                        Call will be broadcast live at www.flotekind.com
Flotek manufactures and markets innovative specialty chemicals, downhole drilling and production equipment, and manages automated bulk material handling, loading and blending facilities. It serves major and independent companies in the domestic and international oilfield service industry. For additional information, please visit Flotek's web site at http://www.flotekind.com.

Forward-Looking Statements:

This Press Release contains forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934) regarding Flotek Industries, Inc. business, financial condition, results of operations and prospects. Words such as expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this Press Release.

Although forward-looking statements in this Press Release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, but are not limited to, demand for oil and natural gas drilling services in the areas and markets in which the Company operates, competition, obsolescence of products and services, the Company's ability to obtain financing to support its operations, environmental and other casualty risks, and the impact of government regulation. Further information about the risks and uncertainties that may impact the Company are set forth in the Company's most recent filings on Form 10KSB (including without limitation in the "Risk Factors" Section) and Form 10-QSB, and in the Company's other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this Press Release. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this Press Release.

Contact Information

  • CONTACT:
    Flotek Industries, Inc.
    Rosalie Melia
    Corporate Secretary
    713.849.9911