Business News

Dresser-Rand Updates Outlook for the Third Quarter

Wednesday 01. October 2008 - Reaffirms Full Year Guidance before Hurricanes and Painted Post Impacts

Dresser-Rand Group Inc. (“Dresser-Rand”) (NYSE:DRC), reported yesterday an accident at its Painted Post facility in New York State. This incident and the impact from Hurricanes Ike and Gustav on the Company’s operating income for the third quarter is expected to be approximately $5 million with more than half of the impact related to revenues that will be deferred into the fourth quarter 2008.

The Company is analyzing the impact of these events on the fourth quarter 2008 but it currently continues to believe that its 2008 operating income will be in the range of $285 to $315 million, with a bias toward the upper half of the range, before the impacts from the Hurricanes and the incident at Painted Post mentioned above.

As previously reported, an accident occurred at the Company’s Painted Post facility late Sunday afternoon resulting in injuries to two employees and damage to a portion of the cylinder test area of the plant. Other parts of the facility were unaffected and are operating normally. The cylinder test facility will undergo repairs over the next several weeks. This temporary outage will result in some delays and increased testing cost.

Hurricanes Ike and Gustav adversely impacted several of the Company’s service operations, caused minor damage to the Company’s repair center in Houston and caused delays in its supply chain in the Gulf Coast region. As a result of these delays, certain orders have now been rescheduled for delivery in the fourth quarter.