DI INDUSTRIES, INC. ANNOUNCES AUDITED OPERATING RESULTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 1995.

HOUSTON--(BUSINESS WIRE)--April 1, 1996--DI Industries, Inc. (AMEX-DRL) (the "Company") announced audited results of operations for its fiscal year ended Dec. 31, 1995. The Company has previously reported the change of its fiscal year end from March 31 to Dec. 31, effective as of Dec. 31, 1994.

The Company reported Revenues of $94,709,000 for the fiscal year ended Dec. 31, 1995 compared to Unaudited Revenues for the 12 month period ended Dec. 31, 1994 of $65,393,000, an increase of 45 percent. Revenues were $50,987,000 for the nine month period ended Dec. 31, 1994. Fiscal year 1995 resulted in a Net Loss of $13,447,000 ($.35 per share) compared to a Net Loss of $2,209,000 ($.06 per share) for the nine months ended Dec. 31, 1994. The Unaudited Net Loss for the 12 month period ended Dec. 31, 1994 was $3,502,000 ($.09 per share).

Included in fiscal 1995 results were the following items of a non- recurring nature:

a) $5,290,000 non-cash impairment reserve relating to the Company's early adoption during the fourth quarter, 1995 of the Accounting Rule change known as SFAS No. 121, requiring long-lived assets to be evaluated for impairment whenever events or circumstances indicate the carrying amount may not be fully recoverable;

b) $772,000 Loss from Discontinued Operations from the previously announced $4.2 million cash sale of the Company's subsidiary holding producing oil and gas properties;

c) $1,300,000 in additional contract costs incurred during the third and fourth quarters, 1995 due to circulation loss and subsequent fishing and side-tracking of the last well of a geothermal drilling project in Mexico; and,

d) $3,431,000 in Argentina 1995 start-up and direct operating losses.

Cash Provided by Operations for the fiscal year ended Dec. 31, 1995 was $2,489,000 compared to Cash Used in Operations of $1,909,000 for the nine months ended Dec. 31, 1994.

The Net Loss from Continuing Operations for the year ended Dec. 31, 1995 was $12,675,000 ($.33 per share) compared to a Net Loss from Continuing Operations of $2,260,000 ($.06 per share) for the nine months ended Dec. 31, 1994. The Net Loss from Discontinued Operations was $772,000 ($.02 per share) for the year ended Dec. 31, 1995 compared to Net Income of $51,000 (nil per share) for the 1994 nine month period.

DI Industries, Inc., headquartered in Houston, Texas, is a holding company whose subsidiaries are primarily engaged in the business of providing both contract oil and gas and geothermal drilling services, and well workover services. Operations are currently carried out in the United States, Mexico, Central America and South America.

DI Industries, Inc.

                                     YEAR ENDED       NINE MONTHS ENDED
                                  DECEMBER 31, 1995   DECEMBER 31, 1994
                                  -----------------   ------------------
                                (in thousands, except per share amounts)

 CONTINUING OPERATIONS:

 REVENUES                           $      94,709       $      50,987
                                    =============       =============
 OPERATING PROFIT                   $         884       $       1,999
   LESS:
   DEPRECIATION & AMORTIZATION              4,832               2,377

 PROVISION FOR SFAS NO. 121
   IMPAIRMENT                               5,290                  --

 GENERAL & ADMINISTRATIVE
   AND OTHER INCOME/EXPENSE
   (NET)                                    3,437               1,882
                                    -------------       -------------
 LOSS FROM CONTINUING OPERATIONS    $     (12,675)      $      (2,260)

 DISCONTINUED OPERATIONS:

 INCOME (LOSS) FROM OIL & GAS
   OPERATIONS                                  (4)                 51
 LOSS FROM SALE OF OIL AND GAS
   PROPERTIES                                (768)                 --
                                    -------------       -------------
 INCOME (LOSS) FROM DISCONTINUED
   OPERATIONS                                (772)                 51
                                    -------------       -------------
 NET LOSS                           $     (13,447)      $      (2,209)
                                    =============       =============

 NET LOSS PER
  COMMON SHARE:

 CONTINUING OPERATIONS              $        (.33)      $        (.06)

 DISCONTINUED OPERATIONS                     (.02)                 --
                                    -------------       -------------
    TOTAL                           $        (.35)      $        (.06)
                                    =============       =============

 WEIGHTED AVERAGE SHARES OF
  COMMON STOCK OUTSTANDING                 38,669              38,641
                                    =============       =============

CONTACT: Thomas L. Easley

chief financial officer

DI Industries, Inc.

713/874-0202