Stamford, Connecticut - December 27, 2002 - Petreco International Inc., headquartered in Houston Texas, completed its acquisition of KCC Group Ltd., a provider of processing equipment for the oil & gas production industry, with its headquarters in London, England. KCC designs and supplies a wide range of custom engineered equipment used to separate and treat oil, gas and other fluids for the oil & gas production and power generation industries. For the nine months ended December 27, 2002, KCC had revenues of approximately $25 million. The acquisition was financed using cash on hand and is expected to be immediately accretive to Petreco net income and EBITDA.

Petreco International Inc. President and Chief Executive Officer Bradford W. Goebel said, "KCC and its product offerings are an excellent fit with the Petreco organization and will enhance our position as a major global supplier to the oil and gas industry. The Petreco/KCC combination provides our customers with one of the broadest selections of processing solutions available, with world-class products and technology for the separation and treatment of oil, gas, produced water and solids from a single worldwide supplier."

Founded in 1984, KCC employs approximately 100 employees in the UK, Abu Dhabi and Houston. More information is available at the company website: www.kccprocess.com.

Petreco International Inc. (formerly Baker Hughes Process Systems) was founded in 2001 as a joint venture between an investment group led by Hamilton Robinson LLC of Stamford, CT and Baker Hughes Inc., of Houston, TX. Petreco has locations in Houston; Rugby, England; Paris, France; Bad Hamburg, Germany; Milan, Italy; Moscow, Russia; Calgary, Alberta, Canada and Singapore. More information about Petreco is available at its website: www.petrecointl.com.

Relevant Web Site:
Petreco