Lone Star Technologies, Inc. announced that its largest subsidiary, Lone Star Steel Co., and Tubos del Caribe, SA (Tubocaribe), Colombia, have terminated their strategic alliance, following a change of ownership of Tubocaribe. The exclusive agreement was due to expire in October 2006.

Lone Star noted that there will be no disruption in the supply of tubular products. Pursuant to the termination agreement, all open orders between Lone Star and Tubocaribe will remain in effect, resulting in all previously expected shipments of OCTG to Lone Star being made in the third quarter of 2005. In addition, Tubocaribe will deliver to Lone Star, without charge, late this year an agreed quantity of OCTG with an estimated value of $8 to $9 million.

While the final deliveries of OCTG from Tubocaribe will be at a reduced level in the fourth quarter, production from Lone Star and Lone Star's alliance agreements with other manufacturers will continue to service the full range of customer requirements.

Tubos del Caribe, SA (Tubocaribe) is a Colombian manufacturer of oil country tubular goods (OCTG) and line pipe.

Lone Star Technologies, Inc.'s principal operating subsidiaries manufacture, market and provide custom services related to oilfield casing, tubing, couplings, and line pipe, specialty tubing products used in a variety of applications, and flat rolled steel and other tubular products.