We will carefully monitor the needs of oil and gasproducers continue to deploy our customer relationships and thereby

We will carefully monitor the needs of oil and gasproducers, continue to deploy our customer relationships and thereby set thebasis for C.A.T. oil`s long-term growth.” Resilient demand for brownfield-related servicesThe global economic development remains difficult to foresee and the 2009outlook for the oil and gas industry has been moderate so far. As a result oflower global demand and a weak oil price, oil and gas producers havesignificantly reduced their budgets for 2009. In Q4 2008 and in Q1 2009 C.A.T.oil has already taken steps to adjust its operating cost base and to strengthencompetitiveness in a challenging market environment. The Company`s strongoperative track-record and its excellent customer relationships have contributedto another successful order book filling. Although it has taken more time thanin the past as customers have revised and reassessed their business plansseveral times, C.A.T.

oil has been able to secure its 2009 order book of EUR 188million (assuming an exchange rate of 48 Rouble/Euro) by the end of the firstquarter. Based on current developments the Company expects to keep the service job countat the level of 2008 with resilient demand for brownfield services and weakerdemand for greenfield services C.A.T. oil therefore expects to be primarilyactive its core services with robust demand for fracturing jobs and furthergrowth in sidetrack drilling. At the same time, price pressure, as well as a further devaluation of the Roubleand Tenge against the Euro is expected to continue influencing the Company`srevenues. At this point in time, with the uncertain global economic outlook theCompany believes it would be prudent to obstain from guiding the market on theexpected 2009 financial result. Cost cutting programmesIn view of the uncertain outlook C.A.T oil has taken steps to increaseprofitability.

In winter 2008/2009 the Company has entered into renegotiationswith subcontractors and suppliers. Purchase prices for some of the materials andsupplies, including fuel, as well as transportation and other subcontractorcosts were reduced by up to 15% on average Moreover, C.A.T. oil has started to adjust its workforce to the changed demandand to bring down wage levels C.A.T. oil intends to reduce the number ofemployees in Russia and Kazakhstan mainly by fluctuation and bring down the 2009weighted average headcount to about 3,000 employees from 3,621 employees in2008. In addition, the company has a flexibility to reduce average wages by upto 25% at expense of variable components as total wages had extraordinarily goneup throughout Russia and Kazakhstan in 2008 Focus on improvement of profitabilityThroughout 2009 C.A.T. oil will closely monitor market developments and customerdemands and adjust its services and capacities accordingly. The Company willmoreover intensify its strict cost management and continue to improve capacityutilization With respect to further expansion C.A.T.

oil does not plan majorinvestments – apart from one sidetrack drilling rig which is scheduled fordelivery by mid-2009. Capital expenditure will therefore remain way belowhistoric levels as investments will concentrate on maintenance of the existingcapacity in good working order In its operations C.A.T. oil will make best possible use of its strengths, i.e.offer integrated deployment solutions and high quality standards. In thecurrently difficult market environment, being a reliable partner for oil and gasproducers is even more important and one key for C.A.T. oil to maintain itsstrong market position and to increase its leading role as service provider inthe long-term C.A.T. oil has almost finished its post-IPO investment cycle andwill continue to operate from a strong equity base.