


FOR IMMEDIATE RELEASE    Contact: Guy T. Marcus              John J. Kennedy
August 21, 1998                   V P-Investor Relations     CFO
                                  Halliburton                Smith International
                                  (214) 978-2691             (281) 443-3370

             HALLIBURTON TO SELL M-I INTEREST TO SMITH INTERNATIONAL

         DALLAS,   Texas   --   Halliburton   Company   (NYSE:HAL)   and   Smith
International,  Inc.,  (NYSE,  PSE:SII)  jointly  announce  today that they have
entered into a definitive  agreement pursuant to which Smith  International will
purchase  Halliburton's  36 percent  ownership  interest in M-I L.L.C.  for $265
million.   M-I  is  a  leading   supplier  of  drilling  and  completion   fluid
products/systems,  services and equipment to the worldwide  petroleum  industry.
Smith currently owns 64 percent of M-I.
         The purchase  price will be paid by Smith in the form of a non-interest
bearing  promissory  note due 240 days  after  closing.  All of M-I's  debt will
remain an obligation of M-I. Closing is expected by the end of August 1998. This
transaction will complete  Halliburton's  commitment to sell its M-I interest in
connection with its pending merger with Dresser Industries, Inc. (NYSE:DI) which
is expected to close this fall.
         Smith  International,  Inc. is a leading worldwide  supplier of premium
products  and  services  to  the  oil  and  gas   exploration,   production  and
petrochemical industries through its five principal business units - M-I Fluids,
M-I SWACO, Smith Bits, Smith Drilling & Completions and Wilson Supply.
         Halliburton  Company is one of the world's largest  diversified  energy
services, engineering, maintenance, and construction companies. Founded in 1919,
Halliburton  provides a broad range of energy services and products,  industrial
and marine engineering and construction services.

                                       ###





                                Page 5 of 5 Pages
                       The Exhibit Index Appears on Page 4
