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  Arrow 3 Media Release 18 July 2002

ESTec Celebrates First Rental Contract For 150iH Top Drive

Inaugural rental agreement valued at up to US$1.5 million

ESTec Systems Corp. (TSX Venture: ESE, www.estec.com) today announced that its wholly owned subsidiary, ESTec Oilfield Inc., has secured its first rental contract for the IntegraLine 150iH Top Drive.

The Top Drive, which has been rented by Oklahoma-based drilling contractor SunStone Energy Company, will be installed on a national drilling rig operating in Texas.

Under the terms of the agreement, SunStone Energy Company will rent the 150iH Top Drive for up to 450 operating days at a rate of US$2,400 per operating day and US$1,200 per non-operating day. In addition to the Top Drive, ESTec Oilfield has been contracted to provide various support services including equipment training, regular maintenance inspections, and full on-site supervision from a qualified ESTec Top Drive operator.

The rental agreement with SunStone commences at the end of July and will last up to 18 months, for an estimated contract value of up to US$1,500,000.

"We are extremely pleased with this, our first foray into Top Drive rentals," said Mr. Anthony Nelson, President and CEO of ESTec Systems. "This contract represents tremendous shareholder value, and provides strong cashflow while enhancing our bottom line. Our market is very demanding and we are very pleased to have our equipment at the heart of the action. As we increase the size of our rental fleet, we expect to see profits from our rental operations surpass that of our sales."

Several factors contributed to ESTec's ability to secure this contract. The 150iH Top Drive is less costly, about 20% lighter, and 33% shorter than any other top drive on the market. In addition, the 150iH permits faster, more efficient and flexible handling than Kelly drives.

About the IntegraLine 150iH Top Drive
At a height of only 14 feet, ESTec's IntegraLine 150iH is the smallest Top Drive system in the world, and the only one that can fit into a double rig drilling system without penalty. The size and innovative design of ESTec's new drive system enables drilling contractors to increase productivity by as much as 25 percent, while dramatically reducing employee injury rates.

About ESTec Systems Corp.
ESTec Systems Corp. is an Edmonton-based public company with two operating subsidiaries: Allan R. Nelson Engineering (1997) Inc., which delivers mechanical and forensic engineering services, and ESTec Oilfield Inc., which designs and manufactures innovative oilfield equipment. ESTec Oilfield has successfully developed and launched the smallest Top Drive system in the world, specifically designed for double or super single rigs. ESTec Systems trades on the TSX Venture Exchange, under the symbol ESE.

 
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