Press Release

PALO ALTO, Calif.--(BUSINESS WIRE)--Oct. 3, 2000--GeoMechanics International, Inc. (GMI), today announced that it has entered into a strategic alliance with Landmark Graphics, a wholly owned business unit of Halliburton Company (NYSE: HAL). The alliance brings together Landmark's premier suite of geophysical, geological and drilling engineering software with GMI's world-class wellbore stability, image analysis and rock mechanics software for the worldwide energy industry.

Through the alliance, Landmark will integrate GMI's core technologies with their product lines, and market and distribute GMI's existing software packages. In addition, Landmark and GMI will work together to expand and develop new products. This alliance will build on GMI's existing partnership with Halliburton Energy Services (HES) to provide a full range of geomechanical products and services for wellbore stability and all stages of reservoir development.

Industry experts estimate annual costs upwards of $6 billion for wellbore stability problems during drilling operations alone. "Many of the opportunities to reduce risk and cost in drilling operations today are linked to understanding the geomechanical forces the well will encounter and incorporating that understanding into the well design process, said John Gibson, president and CEO of Landmark. "GMI's technologies and software products complement the comprehensive well planning approach already accessible within the Landmark suite of products."

"The addition of geomechanics into the earth model will improve the evaluation of new prospects through integration with seismic data, expand reservoir characterization through fracture and fault seal analysis, and optimize drilling operations as well as platform and well placement," stated Dr. Colleen Barton, GMI's president and co-founder.

The partnership aligns GMI, Landmark and HES with ongoing initiatives within major E&P companies to advance understanding of wellbore stability problems. "GMI has worked with its oil and gas industry clients to successfully solve the most difficult drilling, well-planning and production challenges the industry faces, including deepwater drilling in the Gulf of Mexico and West Africa," stated Barton. "Our partnership with Landmark and HES will allow us to deliver the full range of geomechanical applications, integrated into a process that spans the entire life of an oilfield -- from prospect generation to collaborative well planning, execution at the rigsite and long-term production of the reservoir."

About GMI

Based in Palo Alto, California, GeoMechanics International, Inc. is a leading supplier of software, consulting and training services to the oil and gas, geothermal and geotechnical industries. GMI was founded in 1996 by a team from Stanford University's Department of Geophysics. Their core group of geoscientists and engineers are specialists in in-situ stress analysis, wellbore stability, wellbore image analysis and drilling engineering. GMI's technologies have been successfully applied in drilling environments around the world by more than 30 of the largest international E&P companies. GMI is a privately held company with offices in California, Texas, Australia and Europe. The company's Web site can be accessed at http://www.geomi.com.

About Landmark Graphics Corporation

Landmark is the leading supplier of integrated E&P technical and economic software and services to support decision making in finding, drilling and producing oil and gas. Knowledge-based E&P companies rely on Landmark for technical-to-business (T2B(TM)) process integration to improve the return on their investments. Landmark Graphics Corporation is a wholly owned business unit of Halliburton Company (NYSE:HAL), the world's leading diversified energy services, engineering, construction, maintenance and energy equipment company. The Landmark Web site can be accessed at http://www.lgc.com.

About Halliburton

Founded in 1919, Halliburton Company is the world's leading diversified energy services, engineering, energy equipment, construction, and maintenance company. In 1999, Halliburton's consolidated revenues were $14.9 billion and it conducted business with a workforce of approximately 100,000 in more than 120 countries. The company's World Wide Web site can be accessed at http://www.halliburton.com.

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