Dresser, Inc. Seeks Amendments and Consents under Senior Lending Agreements.

DALLAS -- Dresser, Inc. announced today that it is seeking various amendments to its senior secured credit facility and a consent under its senior unsecured term loan, including the extension of deadlines for providing financial statements which are consistent with those required by the indenture governing its 9 3/8% senior subordinated notes.

The requested amendments and consent would extend the deadline from Sept. 30, 2006, to Dec. 31, 2006, for providing audited financial statements for the fiscal year ended Dec. 31, 2005. In addition, the consent would extend the deadline from Sept. 30, 2006, to March 31, 2007, for providing all 2006 quarterly financial statements.

The proposed amendments to the senior secured credit facility would also extend the term of its revolving credit facility from April 10, 2007, to April 10, 2008, permit a new $50 million synthetic letter of credit facility, and address certain technical aspects of the lending agreements.

The company believes it is currently in compliance with all requirements of its financing agreements. However it will not meet the current Sept. 30 deadline for the filing of its quarterly statements and unforeseen matters could cause it to be delayed in meeting the current Sept. 30 deadline for the filing of its 2005 audited financial statements.

The company noted its backlog and bookings remain strong. The company's positive cash flow has allowed it to make a total of $50 million in voluntary prepayments on its senior secured term loan thus far in 2006.

As previously announced, the company said the delay in delivering its financial statements was necessary in order to address certain accounting issues. The company does not believe the resolution of its accounting matters will have a significant impact on EBTIDA (earnings before interest, taxes, depreciation and amortization) from continuing operations or its financial position, including its cash position and total debt.

As previously announced, the company is restating its 2004 annual and quarterly financial statements, as well as its 2005 quarterly financial statements, and continues to evaluate other prior periods that may also require restatement.

About Dresser, Inc.

Dresser, Inc. is a worldwide leader in the design, manufacture and marketing of highly engineered equipment and services sold primarily to customers in the flow control, measurement systems, and compression and power systems segments of the energy industry. Headquartered in Dallas, Texas, Dresser has a comprehensive global presence, with approximately 6,500 employees and a sales presence in more than 100 countries worldwide. The company's website is www.dresser.com.

Safe Harbor Statement:

This document contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including without limitation, the company's expectations regarding the completion of the audit of its 2005 financial statements, the filing of unaudited results for the three-month periods ending March 31, June 30, and Sept. 30, 2006; cash flow and net income effects of the various accounting issues referred to above; compliance with the covenants under its financing agreements and the various amendments, consents and waivers that may be required thereunder; and market conditions, backlog, bookings and cash flow. Actual results may differ from the expectations described in these forward-looking statements, which are subject to factors that are not in every case under the company's control. Factors that could affect the company's forward-looking statements may include, among other things, unexpected effects from the 2005 audit, quarterly financial statement reviews, and the current accounting issues, including discontinued operations treatment of divested businesses, on the company's financial position, results of operations or liquidity, and unanticipated changes to the company's previously issued financial statements as a result of the pending restatements. In addition, see the "Risk Factors" disclosure in the company's Quarterly Report on Form 10-Q for the period ended Sept. 30, 2005.

Because the information herein is based solely on data currently available at this time, it is subject to change as a result of situations over which the company may have no control or influence, and should not therefore be viewed as an assurance regarding such information. Additionally, the company is not obligated to make public disclosure of such changes unless required to do so under applicable rules and regulations.