Acquisition of Kinley Corporation for $7.5M

Expro International Group PLC 10 March 2000 EXPRO INTERNATIONAL GROUP PLC FURTHER US ACQUISITION Expro International Group PLC ('Expro'), the international oilfield services company, announced today the acquisition of Kinley Corporation for $7.5m. Headquartered in Houston, Texas with turnover of $3m, Kinley is a specialist in monitoring downhole corrosion in producing wells. Expro will integrate Kinley as part of its Cased Hole Service business, which together with the recently announced $35m acquisition of Tripoint, will now give the Group a material presence in the North American market with valuable exposure to shallow water, onshore and Canadian markets. As operators in the US have increasingly focused on the deepwater areas of the Gulf, this has increased the opportunities for Expro to offer its high value added services. Having first opened an operating base in Lafayette in 1998, to complement its office facility in Houston, the business has grown strongly. The customer bases and product offerings of Tripoint and Kinley complement Expro's existing operations and provide the opportunity to obtain substantial operating leverage as their products and services are distributed through Expro's existing distribution channels in the US and other markets. John Dawson, Chief Executive of Expro, said: 'The acquisitions significantly raise the Group's profile in the Gulf of Mexico, which is already experiencing increased activity levels. These developments also continue Expro's strategy of reducing its dependence on the more mature European Market, that presently accounts for nearly half the Group's business. Further progress is being made in other overseas markets in Africa and Asia Pacific that are showing good growth opportunities flowing from our established network. Confidence has been returning to the industry, though this has been tempered with continuing restrictions on spending by our clients, despite the significant rise in the oil price. The outlook for the coming year is improving but, as we highlighted at the interim results in December 1999, the pick-up in client capital spending in 2000 is likely to be slow and it is not until calendar 2001 that it is expected to have a significant impact.' Enquiries: Expro 0118 959 1341 John Dawson, Chief Executive Eric Woolley, Finance Director Cazenove 0171 588 2828 Mike Kirk Ludgate Communications 0171 253 2252 Robin Hepburn/Denise Peplow Notes For Editors Expro is one of the UK's leading independent suppliers of oilfield services. It provides a closely related range of specialised services to assist operators in the upstream oil and gas industry to explore for, appraise, develop and produce hydrocarbon reserves.
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