Coil Tubing Technology, Inc. Files Suit Against Grifco, Grifco's former President and DTC.

SPRING, Texas -- Coil Tubing Technology, Inc. ("CTBG") (OTC:CTBG), its majority owned subsidiary, Coil Tubing Technology Holdings, Inc. ("CTTH") and its President & Chief Executive Officer, Jerry Swinford, have filed suit against Grifco International, Inc. (GFCI.PK) ("Grifco"), Depository Trust & Clearing Corporation ("DTC") and the former president of Grifco, James Dial (the "Defendants").

As previously disclosed in CTBG press releases, DTC contacted CTBG in late April 2008 regarding issues associated with Grifco's distribution of its 75,000,000 shares of CTBG in August 2007. The distribution was effected through a stock dividend of CTBG shares to Grifco shareholders as of the record date of May 1, 2006. Grifco announced that each of its shareholders would receive 1.89 shares of CTBG stock for each share of Grifco stock held as of the record date. Thus, the stock dividend was premised on Grifco having approximately 40 million shares outstanding on the record date. However, according to the DTC's records there were approximately 68 million Grifco shares outstanding and held in book entry form on the record date. Additionally, there were a yet undisclosed number of shares outstanding held in certificate form, which are not included in the 68 million share total, and which may have not been included in the distribution by Grifco. Mr. Swinford was one such record shareholder of Grifco, who did not receive shares in Grifco's distribution.

CTBG believes that all three Defendants were aware of the shortfall in shares in August 2007, but allowed the stock dividend to go forward.

When CTBG was contacted by the DTC regarding the shortfall in shares in April 2008, it immediately took steps to have Grifco contact shareholders who did not receive shares in the distribution and obtain signed waivers of their right to receive shares in the stock dividend. To date, a limited number of such waivers have been obtained; however, because of Grifco's failure to obtain waivers from a sufficient number of shareholders, DTC demanded that CTBG acquire additional free trading shares in the market or issue additional free trading shares to satisfy the shortfall. Acquiring additional shares in the market is both financially and logistically impossible and, because CTBG does not have a registration statement on file allowing it to issue additional free trading shares, filing such registration statement would be expensive, time consuming, and subject to SEC approval. Additionally, issuing additional shares of CTBG would substantially dilute the interests of CTBG's existing shareholders.

On July 10, 2008, DTC issued a Stock Dividend E-Mail Alert that stated it had not received sufficient shares from Grifco in order to affect the stock dividend at the rate Grifco announced. DTC further stated that unless it received the necessary shares by July 31, 2008, it would unilaterally adjust the ratio of shares received in the stock dividend from the rate originally declared, 1.89 shares of CTBG common stock for each share of Grifco common stock which shareholders of Grifco held, to a reduced rate of approximately 1.293870 shares.

By demanding that CTBG provide sufficient shares to satisfy the shortfall or unilaterally adjusting the ratio of shares issued, DTC was attempting to force CTBG to suffer the consequences created by itself, Grifco and others. Grifco and DTC were in possession of the relevant information when the stock dividend was issued.

Because the adjustment threatened by the DTC would irreparably harm CTBG and its shareholders, on July 30, 2008, CTBG filed suit against Grifco, DTC, and Dial. Additionally, CTBG sought and obtained a temporary restraining order to restrain the DTC from adjusting shareholder accounts.

Following the hearing, counsel for CTBG, Jess W. Mason, stated, "Judge Stovall's Order today maintains the status quo and prevents DTC from adjusting any accounts until a further Order of the Court. A temporary injunction hearing will be held before the Court on August 22, 2008."

About Coil Tubing Technology, Inc. (CTBG)

CTBG is the result of a reverse merger with IPMC Holdings Corp. which occurred in November 2005. After the reverse merger and until about a year ago, CTBG owned all of the outstanding shares of CTTH and currently owns 95.2% of CTTH's outstanding shares of common stock. CTBG has historically conducted essentially all of its operations through CTTH and its subsidiaries.

About Coil Tubing Technology Holdings, Inc. (CTTH)

CTTH was formed as a holding company of several operating companies in 1999 and continues to have two wholly owned subsidiaries. Through its primary subsidiary, CTTH specializes in the design of proprietary tools for the coil tubing industry, concentrating on four categories of coil tubing application: thru tubing fishing, thru tubing work over, pipeline clean out, and coil tubing drilling. CTTH and its subsidiaries were founded by Jerry Swinford, an oilfield tool designer with more than 25 years experience in the creation of oilfield tools. Mr. Swinford continues to serve as CTBG and CTTH's director, CEO and president.

Forward-Looking Statements 

Certain statements in this release, and other written or oral statements made by CTBG and CTTH, including the use of the words "expect," "anticipate," "estimate," "project," "forecast," "outlook," "target," "objective," "plan," "goal," "pursue," "on track," and similar expressions, are "forward-looking statements" and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements of the company to be different from those expressed or implied. CTBG and CTTH assumes no obligation and does not intend to update these forward-looking statements and takes no obligation to update or correct information prepared by third parties that is not paid for by CTBG or CTTH, respectively.