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HOUSTON, April 22 /PRNewswire-FirstCall/ — BJ Services Company (NYSE: BJS; PCX; CBOE) today reported net income of $127.3 million for the fiscal 2008 second quarter ended March 31, 2008, or $0.43 per diluted share, a 26ACIORFIPROCENTE decrease from the $0.58 per diluted share reported in the previous quarter and a 33ACIORFIPROCENTE decrease compared to the $0.64 per diluted share reported in the fiscal 2007 second quarter.Revenue in the second quarter of fiscal 2008 was $1,283.2 million, slightly below the $1,285.1 million reported in the previous quarter and up 8ACIORFIPROCENTE compared to $1,186.6 million reported in the prior year’s March quarter. Operating income for the quarter was $186.5 million, a 26ACIORFIPROCENTE decrease compared to $252.6 million for the previous quarter and a 36ACIORFIPROCENTE decrease compared to $290.2 million reported in the second quarter of fiscal 2007.Debt decreased $8.4 million during the quarter to $615.9 million and cash and cash equivalents decreased $10.0 million to $43.6 million during the quarter. Uses of cash during the quarter included capital expenditures of $150.0 million and payment of $14.6 million in dividends.Commenting on the results, Chairman and CEO Bill Stewart said, “During the quarter, the Company experienced significant pricing pressure in North America. Most of the price loss occurred in January as we completed a number of pricing agreements with our customers. I am, however, encouraged that pricing was relatively stable in February and March. The fundamental outlook is quite positive in the U.S. with natural gas prices at levels that should lay the foundation for higher drilling levels. This is supported by a number of our customers announcing budget increases for the second half of the calendar year.”Looking at our third fiscal quarter, we expect drilling activity in the U.S. to be up modestly compared to the second fiscal quarter. Pricing is expected to continue to be under pressure; however, we are forecasting the rate of price declines experienced in previous quarters to moderate in the third fiscal quarter. Canada is in full Spring break-up and drilling activity for the quarter is not expected to be significantly different than the same quarter last year. In the International Pressure Pumping segment, we are anticipating modest revenue improvement with slightly improved margins in the third fiscal quarter. The largest sequential improvement is expected to be in the Asia Pacific region, as business is expected to improve after experiencing weather disruptions and project delays in the second fiscal quarter.”We anticipate sequential revenue and margin improvement for our Oilfield Services group. We are projecting our Tubular Services business to recover from delays experienced during the second fiscal quarter. We are also expecting seasonal improvement from our Process & Pipeline Services business. Based on these assumptions, we are currently projecting diluted earnings for the third fiscal quarter to be in the range of $0.39 to $0.43 per share.” CONSOLIDATED STATEMENT OF OPERATIONS UNAUDITED (in thousands except per share amounts) Three Months Ended March 31 December 31 2008 2007 2007 Revenue $1,283,202 $1,186,638 $1,285,065 Operating Expenses: Cost of sales and services 1,004,107 820,661 950,450 Research and engineering 18,913 16,164 17,198 Marketing 31,764 26,075 28,832 General and administrative 41,652 33,634 36,630 Loss (gain) on long-lived assets 238 (83) (626) Total operating expenses 1,096,674 896,451 1,032,484 Operating income 186,528 290,187 252,581 Interest expense (6,949) (8,488) (7,862) Interest income 356 504 474 Other income/(expense), net 1,053 (1,797) (2,711) Income before income taxes 180,988 280,406 242,482 Income taxes 53,685 91,490 70,298 Net income $127,303 $188,916 $172,184 Earnings Per Share: Basic $0.43 $0.64 $0.59 Diluted $0.43 $0.64 $0.58 Weighted Average Shares Outstanding: Basic 293,245 293,247 292,627 Diluted 295,285 296,276 295,284 Supplemental Data: Depreciation and amortization $64,900 $49,819 $62,766 Capital expenditures 149,989 208,399 161,797 Debt 615,892 672,236 624,324 Six Months Ended March 31 2008 2007 Revenue $2,568,267 $2,370,578 Operating Expenses: Cost of sales and services 1,954,557 1,609,296 Research and engineering 36,111 31,858 Marketing 60,596 51,888 General and administrative 78,282 70,841 Loss on long-lived assets (388) 182 Total operating expenses 2,129,158 1,764,065 Operating income 439,109 606,513 Interest expense (14,811) (17,267) Interest income 830 824 Other expense, net (1,658) (3,873) Income before income taxes 423,470 586,197 Income taxes 123,983 190,197 Net income $299,487 $396,000 Earnings Per Share: Basic $1.02 $1.35 Diluted $1.01 $1.34 Weighted Average Shares Outstanding: Basic 292,934 293,134 Diluted 295,182 296,408 Supplemental Data: Depreciation and amortization $127,666 $95,524 Capital expenditures 311,786 354,851 Operating HighlightsFollowing are the results of operations for the three months ended March 31, 2008, March 31, 2007 and December 31, 2007 and for the six months ended March 31, 2008 and 2007: Three Months Ended Six Months Ended March 31 December 31 March 31 2008 2007 2007 2008 2007 U.S./Mexico Pressure Pumping Revenue $643,044 $633,356 $662,551 $1,305,595 $1,274,182 Operating Income 126,516 220,340 182,022 308,538 472,897 Operating Income Margins 20ACIORFIPROCENTE 35ACIORFIPROCENTE 27ACIORFIPROCENTE 24ACIORFIPROCENTE 37ACIORFIPROCENTE Canada Pressure Pumping Revenue $138,790 $121,876 $121,346 $260,136 $233,540 Operating Income 14,481 18,810 16,992 31,473 32,217 Operating Income Margins 10ACIORFIPROCENTE 15ACIORFIPROCENTE 14ACIORFIPROCENTE 12ACIORFIPROCENTE 14ACIORFIPROCENTE International Pressure Pumping Revenue $292,120 $250,371 $288,512 $580,632 $502,427 Operating Income 34,714 29,127 35,925 70,639 69,500 Operating Income Margins 12ACIORFIPROCENTE 12ACIORFIPROCENTE 12ACIORFIPROCENTE 12ACIORFIPROCENTE 14ACIORFIPROCENTE Oilfield Services Group Revenue $209,248 $181,035 $212,656 $421,904 $360,429 Operating Income 37,769 36,674 40,033 77,802 69,372 Operating Income Margins 18ACIORFIPROCENTE 20ACIORFIPROCENTE 19ACIORFIPROCENTE 18ACIORFIPROCENTE 19ACIORFIPROCENTE Corporate Operating Loss $(26,952) $(14,764) $(22,391) $(49,343) $(37,473) March Quarter ReviewU.S./Mexico Pressure Pumping Services second quarter 2008 revenue of $643.0 million was 3ACIORFIPROCENTE lower than the December 2007 quarter (sequential) with average active drilling rigs for the same period declining 1ACIORFIPROCENTE. Lower revenue was primarily attributable to the continuing trend of lower pricing for our products and services, which was generally steeper this quarter than originally anticipated. Compared to the March 2007 quarter (year over year), revenue increased 2ACIORFIPROCENTE on a 2ACIORFIPROCENTE increase in average active drilling rigs. This increase is the result of higher job volume, largely offset by lower pricing. Operating income margins for U.S./Mexico decreased to 20ACIORFIPROCENTE from 27ACIORFIPROCENTE in the previous quarter and from 35ACIORFIPROCENTE in the same quarter last year, reflecting the effect of lower pricing sequentially and year over year, as well as increased material, maintenance and fuel costs.Canada Pressure Pumping Services second quarter 2008 revenue of $138.8 million increased 14ACIORFIPROCENTE sequentially and year over year. Sequential revenue improvement was due to a seasonal increase in Canadian average active drilling rigs of 43ACIORFIPROCENTE during the period, partially offset by a severe reduction in pricing. Year over year, revenue improvement was primarily attributable to the strengthening of the Canadian dollar in relation to the U.S. dollar. Revenue declined on a Canadian dollar basis, due to lower activity levels and lower pricing. Primarily as a result of lower pricing and escalating fuel costs, operating income margin for Canada decreased to 10ACIORFIPROCENTE from 14ACIORFIPROCENTE in the previous quarter and 15ACIORFIPROCENTE in the prior year quarter.International Pressure Pumping Services second quarter 2008 revenue of $292.1 million increased 1ACIORFIPROCENTE sequentially with average active drilling rig levels increasing 3ACIORFIPROCENTE for the same period. Revenue compared to the same quarter last year increased 17ACIORFIPROCENTE with average active drilling rigs up 7ACIORFIPROCENTE. Revenue performance by region is as follows: Region Sequential Year Over Year Europe(1) -6ACIORFIPROCENTE -23ACIORFIPROCENTE Middle East(1) -2ACIORFIPROCENTE 29ACIORFIPROCENTE Asia Pacific -11ACIORFIPROCENTE 8ACIORFIPROCENTE Russia 31ACIORFIPROCENTE -10ACIORFIPROCENTE Latin America(1) 10ACIORFIPROCENTE 43ACIORFIPROCENTE Total 1ACIORFIPROCENTE 17ACIORFIPROCENTE (1) During the quarter ended March 31, 2008, we revised the internal management reporting structure of our pressure pumping operations in Africa. Our North Africa results, including Algeria and Libya, are now included in our Middle East operating segment, while our West Africa results south of Nigeria, including Angola and Gabon, are now included in our Latin America operating segment. Nigeria and coastal areas north of there remain as part of our Europe segment. Prior period results have been restated to conform with the current presentation.Sequential revenue contributions from our Latin America and Russian operations during the quarter were offset by lower revenue from other operating segments within International Pressure Pumping operations. Increased fracturing and vessel activity in Brazil and higher activity in Venezuela provided for the majority of the improvement in the Latin American region. Russia benefited from increased activity, as the previous quarter included a number of lost work days due to extremely cold weather. In Europe, lower activity levels in Norway compared to the prior quarter was the significant cause for the decline of revenue in the region. In the Middle East, lower product sales in India and lower revenue in Saudi Arabia offset improvements in Algeria, Libya and Bangladesh. Our Asia Pacific operations showed a decline in revenue, while average active drilling rigs for the region remained unchanged. Adverse weather conditions negatively impacted operations in Australia and Malaysia while operations in Thailand were hindered by the delay of rigs moving into that market.Year over year, our Latin America operations led the segment’s increase in revenue. All major markets within the region had revenue growth with the highest increase in Brazil. In the Middle East, increased revenue resulted from the addition of two stimulation vessels into the India market during the later part of fiscal 2007. The region also benefited from increased revenue in Algeria, Saudi Arabia and Azerbaijan. In Asia Pacific, an 11ACIORFIPROCENTE increase in average active drilling rigs contributed to the region’s 8ACIORFIPROCENTE increase in revenue compared to the prior year. In Europe, the transfer of a stimulation vessel from the North Sea to India was the primary reason for the revenue decline. In Russia, revenue was lower as the prior year included revenue from our workover rig business, which was sold in the third fiscal quarter of 2007.Operating income margins for International Pressure Pumping were 12ACIORFIPROCENTE in the second quarter of fiscal 2008, consistent with the previous quarter and last year’s March quarter. Increased revenues and improving margins in some international markets have been offset by the impact of activity declines, weather delays and rig delays in other markets.Oilfield Services Group second quarter 2008 revenue of $209.2 million decreased 2ACIORFIPROCENTE sequentially and increased 16ACIORFIPROCENTE year over year. Division Sequential Year Over Year Tubular Services -8ACIORFIPROCENTE 0ACIORFIPROCENTE Process & Pipeline Services -3ACIORFIPROCENTE 69ACIORFIPROCENTE Chemical Services -1ACIORFIPROCENTE 22ACIORFIPROCENTE Completion Tools 10ACIORFIPROCENTE 32ACIORFIPROCENTE Completion Fluids -2ACIORFIPROCENTE -45ACIORFIPROCENTE Total -2ACIORFIPROCENTE 16ACIORFIPROCENTETubular Services operations experienced adverse weather conditions and project delays during the second quarter of fiscal 2008, which resulted in lower revenue sequentially and flat revenue year over year. The Process & Pipeline Services business reported a seasonal decline in revenue sequentially, but significant revenue growth year over year resulting from activity increases in the Middle East and Asia Pacific markets. Chemical Services revenue growth year over year was due to higher activity levels, while revenue was lower sequentially primarily as a result of lower international revenue. Revenue growth in the Completion Tools business sequentially and year over year was primarily attributable to continued expansion into international markets. Declines in Completion Fluids revenue performance is primarily the result of lower activity in the Gulf of Mexico as well as pricing pressure and less favorable product mix.The Oilfield Services Group operating income margin for the quarter was 18ACIORFIPROCENTE, down from 19ACIORFIPROCENTE in the previous quarter and 20ACIORFIPROCENTE reported in the prior year’s second quarter. The sequential decline was due primarily to a decline in revenue from our Chemical Services and Tubular Services businesses. Year over year, lower profitability from Tubular Services and Completion Fluids were the primary reasons for the decline.Consolidated Geographic HighlightsThe following table reflects the percentage change in consolidated revenue by geographic area for the March 2008 quarter compared to the December 2007 quarter and the March 2007 quarter. The information presented is based on our combined service and product line offering by geographic region. Geographic Sequential Year Over Year U.S. -4ACIORFIPROCENTE 1ACIORFIPROCENTE Canada 15ACIORFIPROCENTE 15ACIORFIPROCENTE Total -1ACIORFIPROCENTE 3ACIORFIPROCENTE Latin America 14ACIORFIPROCENTE 34ACIORFIPROCENTE Europe/Africa -12ACIORFIPROCENTE -8ACIORFIPROCENTE Russia 31ACIORFIPROCENTE -8ACIORFIPROCENTE Middle East -5ACIORFIPROCENTE 32ACIORFIPROCENTE Asia Pacific -2ACIORFIPROCENTE 36ACIORFIPROCENTE Total 0ACIORFIPROCENTE 8ACIORFIPROCENTE Non-GAAP Financial MeasuresA non-GAAP financial measure is a numerical measure of a registrant’s historical or future financial performance, financial position or cash flows that 1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet, or statement of cash flows, or 2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented.Any unexpected disclosures of non-GAAP financial measures discussed on the call will be posted on our website as soon as possible after the disclosure.Conference CallThe Company will hold a conference call following this earnings release. The call will take place at 8:30 a.m. Central Time.To participate in the conference call, please call 913/312-0682, 10 minutes prior to the conference call start time and give the conference code number 2292641. If you are unable to participate, the conference call will be available for playback three hours after conclusion of the conference call. The playback number is 719/457-0820 and the replay entry code is 2292641. Playback will be available for five days.The conference call will also be available via real-time webcast at . Playback of the webcast will be available following the conference call.This news release contains forward-looking statements that anticipate future performance such as the Company’s prospects, expected revenue, and expenses and profits. These forward-looking statements are based on assumptions that may prove to be inaccurate, and they are subject to risks and uncertainties that may cause actual results to differ materially from expected results. These risk factors include, without limitation, general global business and economic conditions, drilling activity and rig count, pricing volatility for oil and gas, reduction in demand for our services and products, risks from operating hazards such as fire, explosion and oil spills, unexpected litigation for which insurance and customer agreements do not provide complete protection, potential adverse results from our SEC and DOJ investigations, changes in exchange rates and declines in the U.S. dollar, and risks associated with our international operations, including potential instability and hostilities. This list of risk factors is not intended to be comprehensive. More extensive information concerning risk factors may be found in our public filings with the Securities and Exchange Commission.BJ Services Company is a leading provider of pressure pumping, well completion, production enhancement and pipeline services to the petroleum industry. BJ Services Company

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