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

      1 &amp;#8211; Basis of Presentation and Significant Accounting

      Policies&lt;/b&gt;&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p style="TEXT-ALIGN: justify; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt; MARGIN: 0pt" id="PARA1434"&gt;

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

      accompanying unaudited condensed consolidated financial

      statements of Newpark Resources, Inc. and our wholly-owned

      subsidiaries, which we refer to as &amp;#8220;we,&amp;#8221;

      &amp;#8220;our&amp;#8221; or &amp;#8220;us,&amp;#8221; have been prepared in

      accordance with Rule 10-01 of Regulation S-X for interim

      financial statements required to be filed with the Securities

      and Exchange Commission (&amp;#8220;SEC&amp;#8221;), and do not

      include all information and footnotes required by the

      accounting principles generally accepted in the United States

      (&amp;#8220;U.S. GAAP&amp;#8221;) for complete financial statements.

      These unaudited condensed consolidated financial statements

      should be read in conjunction with the consolidated financial

      statements and notes thereto included in our Annual Report on

      Form 10-K for the year ended December 31, 2012. Our fiscal

      year end is December 31, our second quarter represents the

      three month period ended June 30 and our first half

      represents the six month period ending June 30. The results

      of operations for the second quarter and first half of 2013

      are not necessarily indicative of the results to be expected

      for the entire year. Unless otherwise stated, all currency

      amounts are stated in U.S. dollars.&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p style="TEXT-ALIGN: justify; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt; MARGIN: 0pt" id="PARA1436"&gt;

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

      the opinion of management, the accompanying unaudited

      condensed consolidated financial statements reflect all

      adjustments necessary to present fairly our financial

      position as of June 30, 2013, the results of our operations

      for the second quarter and first half of 2013 and 2012, and

      our cash flows for the first half of 2013 and 2012. All

      adjustments are of a normal recurring nature. Our balance

      sheet at December&amp;#160;31, 2012 is derived from the audited

      consolidated financial statements at that date.&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p style="TEXT-ALIGN: justify; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt; MARGIN: 0pt" id="PARA1438"&gt;

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

      preparation of financial statements in conformity with U.S.

      GAAP requires management to make estimates and assumptions

      that affect the reported amounts of assets and liabilities,

      the disclosure of contingent assets and liabilities at the

      date of the financial statements and the reported amounts of

      revenues and expenses during the reporting period. Actual

      results could differ from those estimates. For further

      information, see Note 1 in our Annual Report on Form 10-K for

      the year ended December&amp;#160;31, 2012.&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p style="TEXT-ALIGN: justify; LINE-HEIGHT: 1.25; MARGIN: 0pt 0pt 0pt 18pt" id="PARA1440"&gt;

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

      Accounting Standards&lt;/i&gt;&lt;/b&gt;&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p style="TEXT-ALIGN: justify; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt; MARGIN: 0pt" id="PARA1442"&gt;

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

      February 2013, the Financial Accounting Standards Board

      issued additional guidance on disclosure requirements for

      items reclassified out of accumulated other comprehensive

      income which was effective for us beginning in the first

      quarter of 2013. This new guidance requires entities to

      present (either on the face of the income statement or in the

      notes) the effects on the line items of the income statement

      for amounts reclassified out of accumulated other

      comprehensive income. During the second quarter and first

      half of 2013, we had no reclassifications out of accumulated

      other comprehensive income, the only changes relate to

      foreign currency translation adjustments.&lt;/font&gt;

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