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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;1. ORGANIZATION AND BASIS OF PRESENTATION&lt;/b&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The accompanying unaudited consolidated financial statements of Oil States International, Inc.
   and its wholly-owned subsidiaries (referred to in this report as we or the Company) have been
   prepared pursuant to the rules and regulations of the Securities and Exchange Commission pertaining
   to interim financial information. Certain information in footnote disclosures normally included in
   financial statements prepared in accordance with U.S. generally accepted accounting principles
   (GAAP)&amp;#160;have been condensed or omitted pursuant to these rules and regulations. The unaudited
   financial statements included in this report reflect all the adjustments, consisting of normal
   recurring adjustments, which the Company considers necessary for a fair presentation of the results
   of operations for the interim periods covered and for the financial condition of the Company at the
   date of the interim balance sheet. Results for the interim periods are not necessarily indicative
   of results for the full year.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The preparation of consolidated financial statements in conformity with GAAP requires the use
   of estimates and assumptions by management in determining the reported amounts of assets and
   liabilities and disclosures of contingent assets and liabilities at the date of the consolidated
   financial statements and the reported amounts of revenues and expenses during the reporting period.
   If the underlying estimates and assumptions, upon which the financial statements are based, change
   in future periods, actual amounts may differ from those included in the accompanying condensed
   consolidated financial statements.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The financial statements included in this report should be read in conjunction with the
   Company&amp;#8217;s audited financial statements and accompanying notes included in its Annual Report on Form
   10-K for the year ended December&amp;#160;31, 2009.
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