EXHIBIT INDEX
Company Press Release August 31, 2000, titled "Stewart & Stevenson Services
Receives Confirmation of Financing For Gazprom's Recent Order of $23.6 Million
in Oilfield Equipment."
Client: Stewart & Stevenson Services, Inc.
Contacts: David Stewart, Treasurer
Stewart & Stevenson Services, Inc.
713-868-7657
Ken Dennard / [email protected]
Lisa Elliott / [email protected]
Easterly Investor Relations
713-529-6600
STEWART & STEVENSON SERVICES RECEIVES CONFIRMATION OF FINANCING FOR GAZPROM'S
RECENT ORDER OF $23.6 MILLION IN OILFIELD EQUIPMENT
ORDER TO RUSSIA'S LEADING NATURAL GAS PRODUCER INCLUDES MULTIPLE PRODUCT LINES
HOUSTON - AUGUST 31, 2000 - Stewart & Stevenson Services, Inc.
(NASDAQ:SSSS), a leading manufacturer and distributor of industrial and energy
related equipment, announced today that its Petroleum Equipment Division has
received confirmation of financing for a $23.6 million order from Gazprom,
Russia's largest natural gas producer and transporter. The sale, scheduled to be
completed by the end of January 2001, includes pumpers, blenders and associated
stimulation equipment; coiled tubing units for drilling and workovers; and
oiltool products, including blowout preventers, gate valves, control systems and
other well safety units for hydrogen sulfide gas control.
"We are pleased to announce that financing for this Gazprom order is now
confirmed and we expect to complete all shipments by the end of our fiscal
year," said Tommy Wall, vice president of Stewart & Stevenson's Petroleum
Equipment Division. "By purchasing multiple products from a single supplier,
Gazprom will have fewer logistical problems. We feel this is not only more
convenient for the customer, but will also prove to be less expensive and take
less time to deliver the products than if the purchases had been through several
manufacturers."
Stewart & Stevenson has been an established supplier of oilfield equipment
to Russia and the former Soviet Union since the early 1970s. The equipment will
be used in major gas fields near the cities of Astrakhan, near the Caspian Sea;
Tyumen in western Siberia; and Orenburg, in the Volga-Urals region southeast of
Moscow. Some of the world's largest gas fields are found in western Siberia,
while the region near Orenburg contains the largest Russian gas field outside of
Siberia.
The Petroleum Equipment Division of Stewart & Stevenson manufactures and
distributes a full line of well servicing products and drilling equipment backed
by dependable, long-term customer support. Since the late 1940s, the Company has
been a leader in providing innovative products and solutions to the oil
industry. For more information about petroleum products and services, visit
www.ssss.com/petro/petro.html Stewart & Stevenson Services, Inc., founded in
1902, is a billion-dollar company that manufactures and distributes a wide range
of industrial products and diesel-powered equipment to key industries worldwide,
including petroleum, power generation, defense, airline, marine and
transportation. Visit the Company's corporate Web site at www.ssss.com
This press release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Stewart & Stevenson believes that its expectations, as
expressed in these statements, are based on reasonable assumptions regarding the
risks and uncertainties inherent in achieving those expectations. These
statements are not, however, guarantees of future performance and actual results
may differ materially. The most important factors that may cause actual results
to differ from our expectations are the risks of cancellation, adjustment or
termination of the contracts with Gazprom; restrictions, limitations or changes
in regulations relating to the exportation of oilfield equipment to or
importation of oilfield equipment into the former soviet states; the stability
and economic responsibility of former soviet states; and the availability of raw
materials, supplies, components, transportation, and labor in the amounts and at
the times necessary to perform the contracts. Other risk factors are listed in
Stewart & Stevenson Services, Inc. annual report to the Securities and Exchange
Commission on Form 10-K for the year ended January 31, 2000, and Quarterly
Report to the Securities and Exchange Commission on Form 10-Q for the three
months ended April 29, 2000.
