Dec. 1, 2006 — Lone Star Technologies, Inc. said that it has completed its previously announced joint venture transaction with Grupo Peixoto de Castro (GPC) to produce finished welded oilfield tubular products.

Pursuant to the agreement, Lone Star has acquired a 50% ownership stake in Apolo Mecanica e Estruturas LTDA, an oilfield tubular products facility in southeastern Brazil that is operated by Apolo. Lone Star will pay approximately $42 million for its stake, of which $24 million was paid at closing with the balance to be paid over the next 18 months. The remaining 50% ownership stake will be held by GPC, and profits from the Joint Venture will be shared equally between the two partners.

Lone Star Technologies is a holding company whose principal operating subsidiaries manufacture and market oilfield casing, tubing, and line pipe, specialty tubing products, including finned tubes used in a variety of heat recovery applications, and flat rolled steel and other tubular products and services.

Grupo Peixoto de Castro is a Brazilian holding company whose principal operating subsidiaries manufacture and distribute refined petroleum-derived products, lubricants, chemicals and petrochemicals, steel tubular products and refractory materials. The Group is also active in the banking and real estate industries.