SOURCE: Grifco International, Inc.

June 16, 2005 08:00 ET

Grifco Nears Completion of 50 Jet Motors; Plans to Ship Within 3 Weeks

HOUSTON, TX -- (MARKET WIRE) -- June 16, 2005 -- Grifco International, Inc. (OTC: GFCI), a provider of oil and gas services equipment to the worldwide oil and gas industry, is nearing completion on its initial production slate of fifty Jet Motor units and expects to begin shipping from its Louisiana production facility within three weeks.

"Several of the major oil and gas companies, as well as large independents, have lined up to utilize this 'one of a kind' tool, knowing that a single Jet Motor will typically increase oil and gas production 15-25% per well, while saving money on workover costs," stated Jim Dial, President and CEO of Grifco International. "We anticipate that the rental units will be used continuously and repetitively by clients, shifting from well to well, for the life of the tool. The fifty Jet Motor units will generate approximately $2 million per month in rental fees with 75% utilization."

Coil Tubing Technology, Inc., a wholly owned subsidiary of Grifco International, Inc., produces the "Jet Motor," a proprietary product for the oilfield drilling and production workover industry. The oilwell workover industry has long desired a downhole drilling motor that can operate on coiled tubing workover units with fluid or nitrogen wells up to 600 degrees Fahrenheit to effectively clean paraffins, sodium carbonates and barium in tubular production strings.

The design concept behind the Jet Motor was to provide the industry with a rotationally driven tool, independent of the workstring, without elastomers, and able to produce sufficient horsepower. The tool needed to operate on fluid or nitrogen and the tool needed to supply sufficient jet velocity and impact force to the nozzle. The Jet Motor solves this riddle by creating horsepower by injection of the fluid or gas used through an offset orifice while converting the horsepower to torque with a control tube that maximizes the torque to the drive system and provides useable drilling torque to the bit. There is no other product available in the industry that can hydraulically clean, mechanically drill with torque, utilized in fluid or gas, and able to operate in 550 degree F hole conditions.

The Jet Motor represents the leading edge of oilfield drilling technology that will revolutionize the way drilling and workover operations are conducted while greatly reducing the cost of workover to the well operator.

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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