Grifco International Establishes Rental Venture in Mexico

Grifco International, Inc. , a provider of oil and gas services equipment to the worldwide oil and gas industry, has signed a joint venture to establish a rental division in Mexico.

Grifco International de Mexico plans to launch rental service in Villahermosa, the capital city of the Tabasco state of Southern Mexico, with plans to expand from this base operation into the North of Mexico. With a rental division in Villahermosa, Grifco can service off-shore operations out of Ciudad del Carmen (Carmen City). Grifco will offer rental service and tools to Grifco clients operating in the Tabasco region, including Halliburton, Dowell Schlumberger, Petro Tech, PEMEX and BJ Services.

The rental service in Mexico should generate approximately $2.5 to $3 Million in revenue for 2005. Grifco looks forward to the continued expansion of its tool division in Mexico; once the expansion is complete, Grifco de Mexico should contribute $5 to $6 Million in annual revenue.

Grifco's recent purchase of manufacturing equipment has increased tool inventory and allowed Grifco to serve international customers with a higher degree of efficiency. The ability of the new machinery to produce tools faster and service tools more effectively was a deciding factor in pursuing the rental business abroad. Grifco International de Mexico is a blueprint for the rental service the company plans to offer in other countries; Grifco has approached joint venture candidates worldwide to host rental tool divisions.

Grifco International, Inc. has continued to design and develop tools in the past two years which will enter the rental tool inventory as a means of introduction to the industry. A minimal overhead with quality tools and service will allow Grifco to offer highly competitive rates for the international and domestic rental market.

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.

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