BJ SERVICES COMPANY, U.S.A. TO LOCATE IN LETCHER COUNTY

Company to be first tenant in the Gateway Regional Business Park

Frankfort, Ky. - Governor Ernie Fletcher and Economic Development Cabinet Secretary Gene Strong, along with the Appalachian Industrial Authority, today announced that BJ Services Company, U.S.A. (BJS), a leading provider of pressure pumping and other oilfield services for the petroleum industry worldwide, will locate a new facility in Jenkins, Kentucky.

BJ Services will be the first company to locate in the Gateway Regional Business Park, constructing a 12,290 square foot facility on approximately 7.5 acres. Employment levels are expected to reach 29 once operational.

Headquartered in Houston, Texas, BJ Services Company’s core business consists of services to enhance and increase the output of gas and oil wells. The BJ name represents a convergence of companies, people, innovative ideas and best practices dating back to 1872. Today the company employs more than 10,000 people internationally with roughly $2 billion in annual revenues from combined operations.

"I am honored that a company with nationwide recognition and respect is the landmark company to locate in the Gateway Regional Business Park," said Governor Fletcher. "My administration is committed to bringing economic opportunity to every county in Kentucky. The opening of BJ Services Company, USA in Letcher County will allow that area to become a better place to live, work, and raise families."

"BJ Services Company, USA is very excited about the initiation of construction at our Jenkins site," stated Mark Songer, Region Manager of Operations Northeastern United States. "Upon completion of construction, we anticipate a facility with the ability to service our customer’s needs in the eastern Kentucky, Virginia and Tennessee market place. In addition, we anticipate strong growth which can and will benefit the local economy in the years to come." "We are extremely pleased that BJ Services has chosen to locate in Jenkins," stated Randy Thompson, Chairman of the Appalachian Industrial Authority. "Their decision marks the beginning for industrial growth in the Gateway Regional Business Park."

"I sincerely welcome BJ Services Company to the Gateway Regional Business Park and to our county," added State Representative Howard Cornett. "Through the efforts of the Letcher County Fiscal Court, the Appalachian Industrial Authority, local and state economic development personnel and many others we have achieved our first success of recruiting jobs for our area and for its people. Let us continue to work diligently and go forward together."

BJ Services received preliminary approval from the Kentucky Economic Development Finance Authority for tax credits under the Kentucky Rural Economic Development Act (KREDA), a program aimed at increasing manufacturing employment in the Commonwealth.

The Kentucky Cabinet for Economic Development is the primary state agency in Kentucky responsible for creating new jobs and new investment in the state. New business investment in Kentucky in 2003 totaled more than $1.56 billion with the creation of just over 13,800 new jobs. Information on available development sites, workforce training, incentive programs, community profiles, small business development and other resources is available at http://www.thinkkentucky.com/.