Varco International, ORANGE

Nature of Business: Manufacturer of equipment and instrumentation used in worldwide oil and gas industry.

Total Employees: 1,300 In Orange County: 410

Stock Listing in The Times: On NYSE as “Varco”

Ticker Symbol: “VRC”

Friday’s Close: 6 3/4

One-Week Change: -3/8

Analyst Review: “Varco’s balance sheet is very good--much better than it was five years ago when the industry went into a sinking spell. It has several new products and a potential joint venture. They should earn 47 cents (per share) this year and 35 to 37 cents next year--some of its growth will be offset by higher taxes. In the long term we think the company can grow 15% to 20% per year. If this joint venture goes next year, it could be as important to them over the long term as the Top Drive Drilling System has been to them, which is the company’s single most successful product. The nice thing about Varco is that they are truly a R&D-driven; company It is always trying to increase the safety and efficiency of drilling.”

--Kenneth S. Miller, analyst Lehman Brothers, New York

SALES VS. PROFITS

Fiscal year ending Dec. 31 Dec. 31 Dec. 31 3 Qtrs. 3 Qtrs. 1988 1989 1990 1990 1991 Net Sales $68.9 $86.6 $132.1 $87.5 $159.1 Net Profit (Loss) $2.3 $2.4 $8.7 $5.3 $10.5

Corporate Outlook: “The most pertinent thing about Varco is that in recent years we have been posturing the company for growth in anticipation of an improving oil service industry. That posturing has taken the form of internal product development as well as acquisitions. We feel we are well situated to take advantage of the opportunities the 1990s will bring.”

--Richard A. Kertson , chief financial officer

3-YEAR SUMMARY AND YEAR-TO-DATE: RETURN ON STOCKHOLDER INVESTMENT

Fiscal year ending Dec. 31 Dec. 31 Dec. 31 3 Qtrs. 1988 1989 1990 1990 52-Week High $6.13 $6.38 $13.75 $13.75 52-Week Low $2.38 $2.88 $4.63 $4.63 Price per Share $3.00 $4.63 $8.50 $11.13 Book Value Per Share $1.99 $2.36 $3.22 $2.53 Net Earnings Per Share $0.10 $0.09 $0.33 $0.20 Price-to-Earnings Ratio 30:1 51:1 26:1 41:1 Avg. Return on Investor Equity 6% 4% 12% 12%

Fiscal year ending 3 Qtrs. 1991 52-Week High $12.50 52-Week Low $6.88 Price per Share $7.38 Book Value Per Share $4.18 Net Earnings Per Share $0.34 Price-to-Earnings Ratio 16:1 Avg. Return on Investor Equity 12%

For more information write, Varco International Inc.: 743 N. Eckhoff St., Orange, Calif., 92668 (714) 978-1900

Source: Varco International Inc.