by Dresser-Rand Group Inc.
Friday, June 20, 2008

One investment is to construct additional test capability associated with its compressor-separator technologies. The second is for a new technology center to house about 500 engineers and technologists. The capital expenditure for the two projects is expected to be approximately $25 million. Both projects will commence immediately. The test facility is expected to be operational later this year, while the occupancy date for the Tech Center is scheduled for early 2009.

Dresser-Rand has developed new integrated separation and centrifugal compression technology, which it believes will represent a unique and superior value proposition for its clients into the future. Dresser-Rand's fully Integrated Compression System (ICS) uses high-efficiency DATUM centrifugal compressor technology driven by a high speed, close-coupled motor mated with an integrated gas-liquid separation unit with process gas coolers, all packaged into a single module. It is designed to be used onshore and aboard fixed and floating offshore platforms as well as, ultimately, in subsea production modules. The company believes this is game changing technology, which goes beyond "best-in-class" and is actually the "only-in-class" for this type of equipment.

With its integrated approach, the ICS compression module can reduce the total footprint exhibited by traditional modules by up to 65%, while cutting the weight approximately in half. Integration of advanced motor driven centrifugal separation technology gives the ICS the ability to handle any dry or wet gas application. Because the compressor, motor, separation system, and gas coolers are contained in the same process module, the system can be installed as a single unit, eliminating the need for large, stand-alone separators. As opportunities for subsea compression emerge, the company expects the ICS system to offer the best solutions for providing real value to clients with seabed production operations.

The new technology center will allow the company to co-locate all parties associated with product design and application along with the technical support for assembly and test of the Olean products. It also will house the worldwide research & development staff and the client facing group that project manages all aspects of the client contracts at the Olean facility. The move to one location is expected to substantially improve communications, productivity, and client satisfaction. The existence of a new state-of-the-art Technology Center will also enhance Dresser-Rand's ability to attract and retain future technical employees to New York State in general and the city of Olean specifically.

Vincent R. Volpe Jr., President, and CEO, said, "We are very pleased to announce the company's final approval of these two strategic investments in Dresser-Rand's Olean site. We have worked hard to create an environment in New York State where we can be successful and continue to invest in technology and associated infrastructure initiatives that will help us compete in a very global market. We appreciate the support received from Governor Paterson through Empire State Development and from our state legislator, Senator Cathy Young, Assemblyman Joe Giglio and both county and city officials. In addition, we believe the new, contemporary labor agreement covering approximately 500 workers at the Olean facility engenders an environment conducive to investment. This agreement is market competitive, with contract language that allows for continuous operating improvements through more flexible and modern work rules."

Dresser-Rand is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. The company operates manufacturing facilities in the United States, France, Germany, Norway, India, and China, and maintains a network of 28 service and support centers covering more than 140 countries.