SOURCE: Grifco International Inc

July 20, 2005 15:46 ET

GFCI Presentation in Venezuela; Jet Motor Assembly Evaluation and Shipping Update

HOUSTON, TX -- (MARKET WIRE) -- July 20, 2005 -- Grifco International, Inc. (OTC: GFCI), a provider of oil and gas services equipment to the worldwide oil and gas industry, has presented the Perf Drill and Silver Hawg to Petroleos de Venezuela SA while the Jet Motor undergoes rigorous testing at Grifco's Texas facility.

Jerry Griffith is in Venezuela presenting Grifco's Perf Drill tool and Silver Hawg to a forty engineer contingent from Petroleos de Venezuela SA (PDVSA), the National Oil Company of Venezuela. Griffith has extended his stay in Venezuela in order to outline well procedures at PDVSA's request; GFCI expects a substantial purchase order by the end of July.

Meanwhile, Grifco has completed the scheduled evaluation and testing phase for its initial production slate of fifty Jet Motor units. Test result highlights include:

--  Initial delivery of the Jet Motor components received 07/16/05 with
    dimensional inspection to ISO 9001 standards completed on 07/18/05.
    
--  Upon completion of the dimensional and visual inspection flow, testing
    of the components was conducted to establish a baseline for horsepower and
    torque output of the assembly.
    
--  On 07/19/05, tests to establish flow rate and pressures through the
    tool were conducted using actual ratings that will be utilized in field
    applications of the tool.
    
--  The results of the flow testing met or exceeded every operational
    criteria standard set for flow rates and torque output of the Jet Motor.
    
--  Upon cessation of the flow test, the subject components were
    disassembled and evaluated for abnormal or dimensional wear indications;
    none were present.
    
--  The Jet Motor product evaluation met or exceeded all criteria set
    forth by engineering projections.
    
Hurricane Emily, currently a category 3 storm that has reached land near the US border with Mexico, has caused a delay in our planned 7/20/05 order shipments to Mexico and South Texas. Weather permitting, GFCI will ship Jet Motors to clients starting on Monday 7/25/05.

Once the initial fifty Jet Motor units are operational in the field, Grifco has plans for a subsequent round of production to meet multiple unit inquiries and commitments from Grifco International customers. Any information regarding orders will be released pending legal clearance from clients.

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 www.grifco.org

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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