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      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;The

      accompanying unaudited condensed 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 (the

      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) 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.&lt;/font&gt;

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      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;The

      preparation of condensed 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.&lt;/font&gt;

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      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;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 31, 2012 (the

      2012 Form 10-K).&lt;/font&gt;

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