EXHIBIT 99.1
PRESS RELEASE
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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.