8-K

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549



                                    FORM 8-K

                                 CURRENT REPORT

                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


                                  JUNE 25, 2004
                                 DATE OF REPORT
                        (Date of earliest event reported)



                            SMITH INTERNATIONAL, INC.
             (Exact name of Registrant as specified in its charter)



            DELAWARE                  1-8514                95-3822631
(State or other jurisdiction of    (Commission           (I.R.S. Employer
 incorporation or organization)     File Number)        Identification No.)

                      411 N. SAM HOUSTON PARKWAY, SUITE 600
                                 HOUSTON, TEXAS
                    (Address of principal executive offices)


                                      77060
                                   (Zip Code)


                                 (281) 443-3370
              (Registrant's telephone number, including area code)





ITEM     5. OTHER EVENTS

         (c)      Exhibit

         99.1     Press Release dated June 25, 2004 with respect to the outcome
                  of a certain legal proceeding.





                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                         SMITH INTERNATIONAL, INC.


                                         /s/ NEAL S. SUTTON
                                         ---------------------------------------

                                         By:  Neal S. Sutton
                                         Senior Vice President - Administration,
                                         General Counsel and Secretary

Date: June 25, 2004





                                  EXHIBIT INDEX


    EXHIBIT NO.         DESCRIPTION
                     

     99.1               Press Release by the Registrant dated June 25, 2004.

EX-99.1

                                                                    EXHIBIT 99.1
PRESS RELEASE
- --------------------------------------------------------------------------------

SMITH INTERNATIONAL, INC.
P.O. BOX 60068
HOUSTON, TX 77205-0068
WEBSITE ADDRESS:  smith.com

FOR RELEASE

FRIDAY, JUNE 25, 2004

CONTACT: MARGARET K. DORMAN
         CHIEF FINANCIAL OFFICER
         (281) 443-3370

                       SMITH INTERNATIONAL, INC. DISCLOSES
                           OUTCOME OF LEGAL PROCEEDING

         HOUSTON, Texas (June 25, 2004)... Smith International, Inc. (NYSE: SII)
reported today that a jury in federal district court in Tyler, Texas had awarded
Halliburton damages of $24 million in a patent infringement case filed against
the Company. The case is Cause No. 4:02CV269, Halliburton Energy Services, Inc.
v. Smith International, Inc. filed in the U.S. District Court for the Eastern
District of Texas, Sherman Division.

         The case involved one of the Company's three-cone drill bit product
lines called IDEAS(TM). The plaintiff claimed these drill bits infringed certain
of the plaintiff's patents. The Company's other three-cone drill bits and
diamond drill bits were not involved in this litigation. The jury found that the
Company infringed the claims asserted by the plaintiff and that certain of the
infringements were willful. Therefore, the Court may increase the damages, in
its discretion, up to three times the amount found by the jury.

         The judge in the case will consider the scope of an injunction against
the future sale of IDEAS(TM) drill bits in the near future. The Company does not
believe that this verdict or an injunction will have a material adverse effect
on the sale of existing three-cone drill bits or the design of future drill
bits.

         The Company believes this decision is erroneous and intends to
vigorously pursue all options. Once judgment is entered by the Court, the
Company will file all appropriate motions and, if





necessary, appeal the verdict. In the event of an unfavorable outcome, the
Company has adequate capacity under its existing revolving credit facilities to
fund any ultimate award.

         Smith International, Inc. is a leading worldwide supplier of premium
products and services to the oil and gas exploration and production industry,
the petrochemical industry and other industrial markets through its four
principal business units - M-I SWACO, Smith Technologies, Smith Services and
Wilson.