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TUBOSCOPE VETCO INTERNATIONAL ANNOUNCES THIRD QUARTER CHARGE

 HOUSTON, Sept. 24 /PRNewswire/ -- Tuboscope Vetco International Inc. (NASDAQ-NMS: TUBO) announced today that it will take a third quarter pre-tax charge of $15 million or approximately $0.62 per share after tax. The company stated that this charge is principally related to the restructuring of its international operations to reflect current market conditions.
 As a result of these restructuring actions, the company expects to realize annual cost savings of approximately $8 million pre-tax or $0.28 per share after tax. The company estimates that 75 percent of the annualized cost reductions will be reflected in the first quarter of 1994 results with full realization of the benefits by year end 1994.
 Martin R. Reid, chief executive officer stated, "This action is required, among other things, to bring our international overhead structure in line with current market conditions." Reid noted that international drilling activity has declined 12 percent during the past year with only modest medium-term improvements expected. The $15 million charge is comprised of approximately $5.7 million for severance costs, and $7.2 million for facility consolidations. Also, included in the charge is $2.1 million for legal, international tax and international bad debt reserves.
 Approximately 80 percent of the $8 million of estimated annual benefits will be derived from reductions in fixed personnel costs.
 Tuboscope Vetco International is the world's leading supplier of coating and inspection services to the petroleum industry; supplies in- service inspection for oil and gas pipelines; sells and leases advanced in-line inspection equipment to makers of oil country tubular goods and provides quality assurance and inspection services to a diverse range of world-wide industries.
 Tuboscope Vetco International is headquartered in Houston and services markets in over 54 countries. 1992 sales were $165.0 million. The company's parent is traded on the NASDAQ National Market System under the symbol "TUBO."
 -0- 9/24/93
 /CONTACT: Ronald L. Koons of Tuboscope Vetco International Inc., 713-799-5100/
 (TUBO)


CO: Tuboscope Vetco International Inc. ST: Texas IN: OIL SU:

WB -- NY078 -- 5607 09/24/93 17:36 EDT
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Publication:PR Newswire
Date:Sep 24, 1993
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