HOUSTON, August 4, 2003 -- Parker Drilling Company (NYSE:PKD) announced today that while to date it has not met its self-imposed goal for asset sales, it continues to expect to reach agreements to sell a significant package of assets. The assets identified for sale include 16 land rigs in Latin America and seven jackup and four platform rigs in the Gulf of Mexico. The company has been in discussions with a third party and had hoped to sign a definitive agreement for the sale of these assets on Friday, August 1, 2003; however, a request for a material change in terms by the third party was rejected by the company and has resulted in a withdrawal of the offer by such party.

"While we are disappointed that the termination of these negotiations will delay our asset sale goals, we anticipate concluding transactions that will achieve a number of our goals," said Robert L. Parker Jr., president and chief executive officer. "The company remains committed to reducing its debt levels by approximately $200 million from assets sales and cash flow.

"In connection with the ultimate sale of an asset package we intend to access the capital markets to raise additional funds to combine with the sale proceeds that will enable us to restructure our debt maturity schedule in a manner that addresses our debt maturities for both 2004 and 2006. The company also intends to secure a new bank credit facility, which will replace the existing facility that expires in October 2003.

"For the future, we will concentrate on expanding the company's presence in certain international oil and gas markets consistent with our long term strategic plan, such as the CIS, the Middle East and the Far East. These efforts will be in addition to our continued involvement in the Gulf of Mexico through our barge rig operations, Quail Tools and related opportunities," Parker said.

Parker Drilling will continue its efforts to reduce its debt-to-equity ratio to the range of 50 to 55 percent through a variety of alternatives, including additional asset sales, use of cash and non-dilutive equity transactions.

Second Quarter Results:

For the quarter ended June 30, 2003, Parker Drilling reported revenues of $73.9 million and a net loss of $74.4 million, or $0.80 per share, compared to a net loss of $11.5 million or $0.12 per share on revenues of $83.7 million for the second quarter of 2002. The net loss includes those assets identified as a part of the expected sale. These assets have been reclassified as discontinued operations and reflect a loss of $60.7 million or $0.65 per share for the quarter, including a $54.0 million impairment provision. For the quarter ended June 30, 2003, the net loss from continuing operations was $13.7 million or $0.15 per share compared to a net loss of $7.7 million or $0.08 per share for the second quarter of 2002.

For the first six months of 2003, Parker Drilling reported revenues of $151.8 million and a loss of $90.6 million, or $0.98 per share, including a loss from discontinued operations of $66.3 million or $0.72 per share. For the first six months of 2002, Parker Drilling reported a net loss of $95.7 million, or $1.04 per share on revenues of $169.9 million. The loss for 2002 included impairment to goodwill of $73.1 million or $0.79 per share. The net loss from continuing operations for the first six months of 2003 was $24.3 million or $0.26 per share compared to a loss of $9.5 million or $0.10 per share for the first six months of 2002.

Drilling and rental operating income from continuing operations was $24.2 million for the second quarter of 2003. This compares to drilling and rental operating income of $28.1 million for the first quarter of 2003, and $27.9 million for the second quarter of 2002.

Utilization of international land rigs for continuing operations is currently 38 percent. Average utilization was 32 percent in the second quarter of 2003 compared to average utilization of 29 percent for the first quarter of 2003. Utilization of Parker Drilling's Gulf of Mexico rigs for continuing operations is currently 36 percent. Average utilization was 55 percent in the second quarter of 2003 compared to an average utilization of 52 percent in the first quarter of 2003.

Capital expenditures for the three months and six months ended June 30, 2003, were $8.3 million and $15.2 million, respectively. Total debt was $571.3 million at June 30, 2003, and the company's cash balance was $66.0 million.

As a result of the proposed asset sales and the slower than expected turnaround in utilization and day rates, the company is revising its 2003 estimated loss from continuing operations to $0.38 -- $0.42 per share. The revised estimate includes costs associated with the proposed debt restructuring.

Parker Drilling has scheduled a conference call at 10 a.m. CDT August 4, 2003, to discuss second quarter 2003 results. Those interested in participating in the call may dial in at (303) 262-2127. The conference call replay can be accessed from noon CDT August 4, 2003, until 6 p.m. CDT August 11, 2003, by dialing (303) 590-3000 and using the access code 544549#. Alternatively, the call can be accessed live through the Investor Relations section of the Parker Web site at . The archived call will be available on the Web for 90 days, and the earnings release will be available for no less than 12 months.

This release contains certain statements that may be deemed to be "forward-looking statements" within the meaning of the Securities Acts. All statements, other than statements of historical facts, that address activities, events or developments that the company expects, projects, believes or anticipates will or may occur in the future, the outlook for rig utilization and dayrates, general industry conditions including bidding activity, future operating results of the company's rigs and rental tool operations, capital expenditures, expansion and growth opportunities, asset sales and other such matters, are forward-looking statements. Although the company believes that its expectations stated in this release are based on reasonable assumptions, actual results may differ from those expressed or implied in the forward-looking statements. For a more detailed discussion of risk factors, please refer to the company's reports filed with the SEC, and in particular, the report on Form 10-K for the year ended December 31, 2002. Each forward-looking statement speaks only as of the date of this release, and the company undertakes no obligation to publicly update or revise any forward- looking statement.

HOUSTON, August 4, 2003 - Parker Drilling (NYSE:PKD) and Calik Enerji A.S. today announced that they have been awarded a three-year contract for two land rigs in Turkmenistan. This project will further expand Parker's significant presence in the Commonwealth of Independent States, where it has operated since 1991.

The principal contract was awarded by State Concern Turkmenneft and will utilize two Parker rigs. The contract also provides for a two-year extension period and is expected to commence in September 2003, following the mobilization of Rig 230 from Kazakhstan to Western Turkmenistan's Korpedje Field, which is operated by Turkmenneft. The current schedule anticipates that the second Parker rig would begin work prior to year end.

"We are excited to be one of the few U.S. drilling contractors to participate in Turkmenistan's plan for increasing the scope of its oil and gas exploration and production drilling," said Robert L. Parker Jr., president and chief executive officer. "This opportunity is consistent with the company's history of drilling in developing markets, and is in line with our stated objectives of increasing rig utilization and seizing new growth opportunities with minimal capital expenditures. We look forward to developing strong, mutually beneficial relationships with Calik Enerji and Turkmenneft that will result in continued activity in this region."

Parker Drilling is a Houston-based global energy company specializing in offshore drilling and workover services in the Gulf of Mexico and international land and offshore markets. Parker also owns Quail Tools, a provider of premium industry rental tools. Parker Drilling has 79 marketed rigs and employs 3,000 people worldwide.