KCA DEUTAG has launched a review of strategic alternatives in order to strengthen its capital structure and position the company for long-term growth.

KCA DEUTAG, which has an exceptional industry HSE record, is one of the world's largest international land drilling and platform drilling contractors. In addition it operates a fleet of mobile offshore drilling units. It is also one of the world's leading rig design engineering and building specialists with activities ranging from new-build drilling facilities, rig reactivation and modification, and conceptual engineering to consultancy and technical integrity assurance. KCA DEUTAG employs over 8,000 people and operates in more than 20 countries worldwide.

KCA DEUTAG recently executed an agreement with its senior lenders to defer covenant tests from 14 November 2010 to 31 March 2011. This agreement provides the stability and funding to allow KCA DEUTAG to implement its business plan and pursue discussions with its existing stakeholders and new financial and strategic investors to ensure a solution to its capital structure on a long-term basis.

In order to address its capital structure on a permanent basis and position the company for growth, the Board of Directors of Turbo Alpha, which owns KCA Deutag, has initiated a review of strategic alternatives. Such review will involve the possibility of a sale of the business or the provision of new long term capital in connection with a refinancing or renegotiation of the existing debt.

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