CE Franklin Ltd. earns $0.12 per share for third quarter -- Results are in Canadian dollars.

CALGARY, Alberta--(BUSINESS WIRE)--Oct. 18, 1996-- CE Franklin Ltd. (AMEX.CFK)(TSE.CFT) Friday announced earnings of $0.12 per share in the third quarter and $0.30 per share for the nine months which ended Sept. 30, 1996.

The quarter's strong results are due to increased drilling activity in Western Canada and the synergies gained by integrating Continental Emsco Co. Ltd. ("CEL") and Franklin Supply Company Ltd. ("Franklin").

Comparisons with the third quarter in 1995 are difficult as the 1995 figures are those of CEL. CEL was acquired by Franklin on Nov. 3, 1995, by a reverse takeover. CEL achieved earnings of $0.01 per share from continuing operations in the third quarter and $0.09 for the nine months ended Sept. 30, 1995.

Third quarter sales rose $46.6 million to $72.3 million an increase of 180 percent from the third quarter in 1995. This dramatic increase is due mainly to the inclusion of Franklin's sales of $35.3 million and drilling activity increasing 31 percent in Western Canada.

Selling, general and administrative (S,G&A) expenses as a percentage of sales year to date, decreased from 11.0 percent in 1995 to 8.5 percent in 1996 mainly as a result of the benefits of integrating CEL and Franklin.

"This past quarter has been exciting at CE Franklin. Not only are we pleased to announce excellent earnings, we are also delighted with the positive trading activity created in our stock by listing on The Toronto Stock Exchange," commented CE Franklin's Chairman and CEO, John Gilbank. "Furthermore, we are looking forward to becoming the exclusive national distributor for Griffin Legrand's artificial lift solutions for the oil industry specializing in progressive cavity pumps and pumpjacks. As for the fourth quarter the Canadian oil and gas industry continues to look strong."

CE Franklin Ltd. is the largest Canadian distributor of supplies for the oil and gas industry. The company provides oil and gas producers with a full range of products and related services from basic operating supplies to advanced completions equipment. -0-

CE Franklin Ltd.
Summary of Financial Data
(All amounts shown in Canadian Dollars)

             Three months  Three months  Nine months Nine months
                 ended         ended        ended       ended
               Sept. 30,     Sept. 30,    Sept. 30,   Sept. 30,
                  1996          1995         1996        1995
----------------------------------------------------------------

Selected Income Statement Data:

Sales        $72,315,722  $25,714,176  $185,468,144  $68,006,380

Gross Profit   8,986,600    3,554,763    23,994,468    9,457,887

Selling, General &
 Administrative
 Expenses      5,253,933    2,520,306    15,866,761    7,462,227

Operating
 Income        3,732,667    1,034,457     8,127,707    1,995,660

Income From
 Continuing
 Operations    1,809,754      129,215     4,648,810      778,104

Net Income     1,809,754      227,857     4,648,810    1,287,349

Net Income Per Share
 (under Canadian
 GAAP)              0.12         0.03          0.30         0.15

Weighted Average
 Number of Shares
 Outstanding  15,719,952    8,634,017    15,708,719    8,634,017


                      Sept. 30,         Sept. 30,
                       1996               1996
---------------------------------------------------

Selected Balance Sheet Data:

Working Capital      34,154,545        41,932,866

Total Assets         87,955,816        80,869,169

Long Term Debt       11,575,245        24,619,645

Total Liabilities    54,835,558        52,461,557

Shareholders' Equity 33,120,258        28,407,612

CONTACT: CE Franklin Ltd., Calgary

Kelly O'Sullivan, IR, 403/531-5604 or 800/345-2858 or

Jean Parker, CFO, 403/531-5603