C.A.T. oil AG: Strong Earnings Growth in 2010 Sets Solid Basis for Expansion

Vienna, 28 April 2011 ? C.A.T. oil AG (O2C, ISIN: AT0000A00Y78), one of
the leading providers of oil and gas field services in Russia and
Kazakhstan, today announced its results for the Full Year 2010, during
which the Company was able to successfully utilize the global recovery
for further profitable growth and prepare the next milestone of its
business development. With revenues of EUR 228.8 million C.A.T. oil
exceeded its objective to realize revenues in the range of EUR 215 to
225 million. In addition, C.A.T. oil achieved its goal to substantially
increase its profitability: the EBITDA-margin expanded to 24.7% from
19.9% in 2009. EBITDA improved 24.5% yoy to EUR 56.4 million and net
profit more than doubled yoy to EUR 19.5 million.

Manfred Kastner, CEO of C.A.T. oil, commented: 'We have been more than
successful in delivering on all our objectives. Our development in 2010
clearly underlined how well we are able to capitalize on our strong
reputation in the market and how successful we are in pursuing our
strategic goals. We have further increased our market share in Russia
and Kazakhstan and have substantially increased our earnings. 2010 has
thus been a year of transition in which we prepared for the next phase
of our Company development.?

Manfred Kastner continued: 'In 2011, the year of our twentieth
anniversary, we will expand into Conventional Drilling as our third core
business. We will leverage our experience and strong customer relations
and we remain committed to delivering high quality services and
maintaining efficiency levels as we continue to develop our business.?

Revenues of EUR 228.8 million slightly exceed target range

At EUR 228.8 million, revenues developed slightly ahead of the target
range of EUR 215 to 225 million. During the reporting period, C.A.T. oil
benefitted from higher than expected utilization levels, as well as a
favorable rouble-to-euro exchange rate. In comparison to the previous
year, revenues remained stable (2009: EUR 228.0 million) which is
attributable to three main effects: The outsourcing of low-margin
services, the increased proportion of day rate contracts in sidetrack
drilling activities and the customer trend towards in-house procurement
of proppant for fracturing operations. The average per job revenue
remained stable at TEUR 75.2 in 2010 (2009: TEUR 75.0), primarily
reflecting a change in revenue mix.

Efficiency as one of the key value drivers

In 2010, C.A.T. oil once again clearly committed itself to efficiency
and lean structures across all operations and processes. C.A.T. oil
managed to increase the sidetrack drilling job count by 17.2% yoy and
the fracturing job count by 6.3% yoy. In addition, C.A.T. oil continued
to concentrate its activities on its core business and outsourced the
low-margin services of its business. Accordingly, capacities for
workover services were reduced by around 75% and seismic operations,
which are part of its Formation Evaluation segment, were further
rationalized.

Cost discipline maintained - cost of sales down 3.4% yoy

C.A.T. oil continued its strict cost management across the group.
Despite an 8.7% yoy appreciation of the average rouble-to-euro exchange
rate during the reporting period, C.A.T. oil was able to further cut
costs primarily through the rationalization of its seismic and auxiliary
operations. Cost of sales went down 3.4% yoy to EUR 186.7 million in
2010 (2009: EUR 193.3 million). Cost of materials and supply reduced
11.9% yoy to EUR 62.6 million (2009: EUR 71.1 million), primarily owned
to the effects of a tighter procurement and more efficient use of
disposable materials, fuel and spare parts. General and administrative
expenses diminished 1.9% yoy to EUR 18.2 million (2009: EUR 18.6
million). As a result of the outsourcing process, wages and salaries
were reduced by 7.5% yoy to EUR 31.3 million (2009: EUR 33.8 million).
In 2010, the total weighted average headcount contracted 15.6% yoy to
2,424 employees (2009: 2,873 employees) primarily employed in the
Company′s core services.

Significant improvement in earnings and margins

C.A.T. oil increased earnings before interest, tax, depreciation and
amortization (EBITDA) by 24.5% yoy to EUR 56.4 million (2009: EUR 45.3
million). The EBITDA margin went up to 24.7% (2009: 19.9%) reflecting
C.A.T. oil′s persistent cost management and efficiency improvements.
Earnings before interest and tax (EBIT) improved 50.1% yoy to EUR 27.5
million (2009: EUR 18.3 million), and EBIT margin expanded from 8.0% in
2009 to 12.0% during the reporting period. Due to the higher operating
profit and financial result as well as the normalized effective
corporate tax rate of 30.8% (2009: 43.1%) C.A.T. oil′s net profit more
than doubled yoy to EUR 19.5 million from EUR 8.4 million in 2009.

Diversification of the business based on solid financial position

Following the economic recovery in 2010, C.A.T. oil decided to increase
its capital expenditure program beyond its maintenance level to a EUR
150 million investment program for the fiscal years 2011 and 2012. The
program aims at expanding the Company activities into the area of
high-class Conventional-Drilling-Services as a third core business line,
as well as strengthening the existing sidetrack drilling and fracturing
operations.

Capital expenditures went up to EUR 43.3 million in 2010 (2009: EUR 12.0
million) reflecting the upgrade and expansion of the existing fracturing
and sidetrack drilling capacities as well as early pre-payments for nine
new mobile rigs for Conventional Drilling as a part of the 2011-12
investment program.

Despite a 29.6% yoy increase in funds from operations to EUR 48.3
million (2009: EUR 37.3 million), cash flow from operating activities
was down 5.0% yoy to EUR 59.2 million (2009: 62.4 million), primarily
reflecting changes in working capital for 2010 compared to 2009. Cash
flow from investing activities represented an outflow of EUR 39.7
million (2009: outflow of EUR 10.9 million). Cash flow from financing
activities was an outflow of EUR 13.3 million in 2010 (2009: outflow of
EUR 36.9 million), reflecting the payment of the 2009 dividend of EUR
14.7 million.

Despite the launch of the new investment cycle C.A.T. oil continued
generating positive free cash flow of EUR 19.6 million in 2010 (2009:
EUR 51.5 million).

Cash and cash equivalents increased 17.3% yoy to EUR 34.1 million as of
December 31, 2010. With an equity ratio of 83.2% as of December 31,
2010. C.A.T. oil operated on the basis of a very strong balance sheet.

Optimistic outlook for 2011

For 2011, C.A.T. oil is optimistic and expects a solid demand growth for
its high-class services. The current market environment is very
supportive for both, the traditional business and the diversification
into High Class Conventional Drilling.

At the end of April 2011, the Company orders for the current fiscal year
amounted to EUR 230 million (based on a rouble-to-euro exchange rate of
40), including a first order for Conventional-Drilling-Services. C.A.T.
oil is confident that it will receive additional orders later in the
year and expects the total revenues for 2011 to come in above the
current order book level of EUR 230 million. For the fiscal year 2012,
C.A.T. oil has also already received first orders of about EUR 37
million, bringing the total order book volume for 2011 and 2012 to a
level of EUR 267 million.

In its daily business C.A.T. oil will continue to deliver high quality
services and remains committed to efficient processes. Although the
diversification into Conventional Drilling can have effects on
profitability on a quarterly basis, C.A.T. oil remains committed to
profitable growth and expects the 2011 EBITDA-margin to stay close to
the 2010 level. Following the successful launch of Conventional Drilling
operations, C.A.T. oil anticipates that its third core business line
will make a significant contribution to the Company′s revenues, earnings
and cash flow in 2012 and beyond.

Dividend proposal of EUR 0.10 per share

Manfred Kastner said: 'Due to our outstanding performance in 2010, we
are proud that shareholders once again can participate in C.A.T. oil′s
successful earnings′ development. At the AGM on June 17, 2011 the
Management Board and the Supervisory Board will propose a dividend of
EUR 0.10 per share, representing a profit distribution of 25% and thus
exceeding the 20% threshold set by our dividend policy.?

¹As of 31 December 2010 and 31 December 2009 respectively

C.A.T. oil AG

Investor Relations

0043 1 535 23 20-30

ir@catoilag.com

or

Financial
Dynamics

Carolin Amann / Thomas Krammer

catoilag@fd.com