Smith International, Inc. Announces Public Offering of 28,000,000 Shares of Common Stock

Smith International, Inc. (NYSE: SII) (“Smith”) today announced that it has commenced a public offering of 28,000,000 shares of its common stock. The Company intends to use the net proceeds from this offering for debt repayment, general corporate purposes, and funding of potential acquisitions or investments.

The Company has granted the underwriters a 30-day option to purchase up to 4,200,000 additional shares of common stock to cover over-allotments, if any.

J.P. Morgan Securities Inc. is acting as the book-running manager of the offering. The offering is being made pursuant to an effective shelf registration statement that the Company previously filed with the Securities and Exchange Commission.

This press release is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offers of the shares of common stock described in this press release will be made exclusively by means of a prospectus and prospectus supplement.

When available, copies of the preliminary prospectus supplement and accompanying base prospectus relating to the offering may be obtained from J.P. Morgan Securities Inc. via Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, or by calling (631) 254-1735. Copies of the preliminary prospectus supplement and accompanying base prospectus will also be available on the Securities and Exchange Commission’s website at www.sec.gov.

Smith International, Inc. is one of the largest global providers of products and services used by operators during the drilling, completion and production phases of oil and natural gas development activities.

This material includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The opinions, forecasts, projections, or other statements other than statements of historical fact, are forward-looking statements. Similarly, statements that describe our future plans, objectives or goals or future revenues or other financial metrics are also forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any of them in light of new information, future events or otherwise. Certain risks and uncertainties inherent in the Company’s business are set forth in the filings of the Company with the Securities and Exchange Commission.