



FOR IMMEDIATE RELEASE      Contact: Guy T. Marcus           John J. Kennedy
August 31, 1998                     V P-Investor Relations  CFO
                                    Halliburton             Smith International
                                    214) 978-2691           (281) 443-3370

                 HALLIBURTON COMPLETES SALE OF M-I INTEREST TO 
                               SMITH INTERNATIONAL

         DALLAS, Texas -- Halliburton Company (NYSE:HAL) and Smith 
International, Inc., (NYSE, PSE:SII) jointly announce today that Smith
International has completed the purchase of 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 now owns 100 percent of M-I; Smith owned a 64 percent
majority interest prior to today's purchase.
         The purchase price was paid by Smith in the form of a non-interest
bearing promissory note due 240 days after today's closing.  All of M-I's debt
will remain an obligation of M-I.  This transaction completes 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.

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                       The Exhibit Index Appears on Page 4
