PEMEX Field Tests With Grifco International

Grifco International, Inc. , a provider of oil and gas services equipment to the worldwide oil and gas industry, announces the results from a series of tests completed with PEMEX, the National Petroleum Company of Mexico.

PEMEX is the 3rd largest producer of crude oil in the world, the 8th largest integrated oil company in the world, and a key supplier of crude oil to the US market. PEMEX recently completed testing in a joint exercise with Grifco International, Inc. utilizing the "Silver Hawg," a corrosion inhibitor tool designed to inhibit the formation of solid paraffin and scale particles in oil wells.

PEMEX has made the following conclusion based on the test.

1.   Prior to installation of the "Silver Hawg" corrosion inhibitor tool,
     well production was diminishing over time.

2.   Prior to "Silver Hawg" implementation, well production was maintained
     with hot oil and chemical treatments. Both processes have ceased due to
     the effectiveness of "Silver Hawg."

3.   Production increased in the test wells (increasing 126 barrels per day).

4.   Production costs decreased with use of "Silver Hawg."

5.   "Silver Hawg" tool gives the well better fluid characteristics and
     optimized production for gas injector wells (Gas lifts are another means
     to increase fluid flow from well bore).

Based on these results, PEMEX has issued Grifco International, Inc. (via the Grifco agent in Mexico) an immediate contract for additional wells in the region. Pending favorable review of the larger installment, Grifco International will prepare to supply up to 300 more wells, while awaiting a third contract installation for the northern district of Mexico. The contracts with PEMEX will generate approximately $2.5 million. Updates on these wells and contracts will be released as information becomes available.

The favorable Silver Hawg field-testing with PEMEX portends an opportunity for Grifco International to further its presence in Mexico while seeking deeper inroads into Latin and South America. PEMEX is the largest company in Mexico with 2003 revenue of $57 billion and possesses strong relationships with major oil companies worldwide. Grifco places a premium on pursuing and developing working relationships with National Oil companies and their governments.

Grifco International Inc. is a leading provider of oil and gas services equipment, specializing in the conception, architecture, and development of tools for the coil tubing, wire line, and snubbing industry throughout the US, China, Mexico and South America. Grifco's patented products are known and used throughout the world. In addition to our patented tools, Grifco designs and manufactures over 350 products for the Oil and Gas industry with a clientele boasting the biggest names in the business, including Halliburton, Exxon, and Schlumberger. Please visit www.grifco.org

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The Company cautions the assumptions, expectations, projections, intentions, or beliefs about future events may, and often do, vary from actual results and the differences can be material. Some of the key factors which could cause actual results to vary from those the Company expects include changes in natural gas and oil prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as our ability to access them, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting our business. More information about the risks and uncertainties relating to the Company's forward-looking statements are found in our SEC filings.