29.08.2003 – 09:04

Schoeller-Bleckmann Oilfield Equipment AG

euro adhoc: Schoeller-Bleckmann Oilfield Equipment AG
Quarterly or Semiannual Financial Statements
Schoeller-Bleckmann Oilfield Equipment AG: Restrained business development over first half of 2003 Share in Knust-SBO increased to 100 % - new manufac

Disclosure announcement transmitted by euro adhoc. The issuer is
responsible for the content of this announcement.

Ternitz - August 29, 2003. Schoeller-Bleckmann Oilfield Equipment AG,
listed on the prime market of the Vienna Stock Exchange, looks back
on a restrained first half of 2003 with volatile currency parities
and continuously curbed demand within the industry. In the first half
of 2003, SBO generated group sales of EUR 73.89 mill. (following EUR
95.49 mill.). The mid-year EBIT was EUR 8.13 mill. (following EUR
14.30 mill. last year). The EBIT margin was 11.0 % compared with 14.9
% in the first half of 2002.

The decline in sales and profit was due to the weak dollar and the
lower number of bookings in Q1, which impacted business development
in Q2. "Currently, oilfield service companies are running down their
inventories of oilfield equipment items and pursue a restrictive
investment policy to cut their cost", explained CEO Gerald Grohmann.

Sales generated in Q2 of 2003 amounted to EUR 34.58 mill. (following
EUR 45.82 mill.), the quarterly result before taxes to EUR 2.53 mill.
(following EUR 4.13 mill.). Although SBO was able to maintain its
market position the result was not satisfying due to the weakness of
the dollar. "However, based on the currency relations of Q2/02 the
result would have been around EUR 4.5 mill., thus topping last year’s
performance", said Mr. Grohmann.

The current weakness of the US dollar is now increasingly used for
investments in the dollar region. This is why SBO will raise its
share in the most profitable group subsidiary Knust -SBO Ltd.,Texas
from 75 % to 100 %. Furthermore, SBO will launch a manufacturing
cooperation scheme with a Mexican company. Despite of those
activities and a flexible use of capacities in the existing
production sites, sales and results will presumably be lower in 2003
than in 2002.

Rise of rig count as a first sign of recovery

The around 9.5 % rise of the rig count, the most significant
indicator of drilling activities, from a global 1,957 by the end of
2002 to 2,144 by mid-year of 2003 will reduce stocks of equipment
items for the oilfield service industry and make replenishments
inevitable. As a consequence, demand should pick up from 2004 on if
the US economy will experience a noticeable recovery.

Comparison of key figures in MEUR

~
                       First half  2003     First half 2002
Sales                       73,89                 95,49
EBIT                         8,13                 14,30
EBIT margin (%)              11,0                 14,9
Profit before tax            7,14                 10,71
Consolidated group result    3,89                  6,41
Headcount                    833                   883
~

Schoeller-Bleckmann Oilfield Equipment AG is the global market leader
for high-precision components for the oilfield service industry. The
business focus is on non-magnetic drill string components for
directional drilling. Worldwide, the company employs a workforce of
833 (end of 2002: 852), currently 216 in the company headquarters at
Ternitz, Lower Austria, and 307in Houston, Texas. The majority
shareholder of the company is Berndorf AG (approx. 64%).

For information please contact:
Gerald Grohmann, Chief Executive Officer 
Schoeller-Bleckmann Oilfield Equipment AG
A-2630 Ternitz, Hauptstraße 2
Tel: +43 2630/315 ext. 110, Fax: ext. 101
E-Mail:  sboe@sbo.co.at

end of announcement        euro adhoc 29.08.2003

Further inquiry note:

Mick Stempel
Tel.: 01/5046987-85
mailto:m.stempel@hochegger.com

Branche: Oil & Gas - Upstream activities
ISIN: AT0000946652
WKN: 94665
Index: ATX Prime, WBI
Börsen: Wiener Börse AG / official dealing