AMSTERDAM, The Netherlands, July 23 /EMWNews/ -- Core

Laboratories N.V. (NYSE: CLB) reported second quarter 2008 net income of

$33,711,000 and earnings per diluted share (EPS) of $1.38, including a

one-time, non-cash, after-tax charge of approximately $3,200,000, related

to its 2006 issuance of $300 million Senior Exchangeable Notes (the

"Notes"). Excluding the charge for the Notes, Core's operations generated

net income of $36,940,000 and EPS of $1.51 during the quarter, both

increases of 28% over year-earlier second quarter totals. Year-over-year

quarterly revenue increased 17% to a record $197,688,000, and operating

income increased 31% to a record $55,019,000. Second quarter operating

margins, defined as operating income divided by revenue, increased

approximately 300 basis points over second quarter 2007 levels to a record

28%. Year-over-year quarterly incremental margins, defined as the quarterly

change in operating income divided by the quarterly change in revenue, were

45% for the second quarter of 2008.



    The record second quarter results were due to increased demand for the

Company's Reservoir Description services, especially those related to

internationally based crude-oil developments, and increased demand for

Core's Production Enhancement technologies used to optimize reservoir

performance for tight gas sand and gas-shale developments in North America.

In addition, Core's Reservoir Management operations initiated a detailed

joint industry project to evaluate the potential of the Haynesville gas

shale and laterally equivalent sequences at the request of 12 major acreage

holders in the area.



    For the first six months of 2008, Core's revenue increased 16% to a

record $377,125,000, while net income and operating income, excluding the

effects of one-time gains and charges, increased 30% and 32% to $70,066,000

and $104,021,000, respectively, from year-earlier totals. Operating and

incremental margins for the first six months, excluding the effects of

one-time gains and charges, reached 28% and 48%, respectively.



    Segment Highlights



    Core Laboratories reports results under three operating segments:

Reservoir Description, Production Enhancement, and Reservoir Management.



    Reservoir Description



    Reservoir Description operations posted record levels of revenue and

operating income for the second quarter of 2008. Quarterly revenue was

$114,157,000, an increase of over 22% over second quarter 2007 totals. The

22% growth rate was the highest for Reservoir Description in over a decade.

Quarterly operating income increased 35% to $28,969,000, and operating

margins increased 250 basis points from second quarter 2007 levels to 25%.



    Reservoir Description operations experienced increased demand for

technologies related to crude-oil developments in Asia Pacific and

especially in the Middle East, where the Company continues to expand its

operations. At the request of Saudi Aramco, Core is sending additional

advanced rock properties testing equipment to perform more sophisticated

dynamic flow tests, the results of which are used to enhance daily oil

production and ultimate hydrocarbon recovery factors. Asia-Pacific

operations continue to receive large volumes of work from Malaysia,

Indonesia, India, and Australia, among other countries.



    In North America, the Company continues to process more than 55 miles

of oil-sand core in Canada, while expanding its ability to process

increased amounts of core from gas shales. The Company continues to build

"The Canadian Center for Unconventional Oil and Natural Gas Evaluation" in

Calgary in expectation of over 70 miles of oil sand core and large amounts

of shale core to be cut in the Muskwa and Utica developments later in 2008

and into 2009. The Center is scheduled to open in early December to meet

client demands expected during the 2008 - 2009 drilling season.



    Production Enhancement



    Production Enhancement operations also posted record levels of revenue

and operating income for the second quarter of 2008. Quarterly revenue was

$71,706,000, an increase of 18% over second quarter 2007 totals. The 18%

growth rate for Production Enhancement was the highest since the fourth

quarter of 2006, and it confirms the increasing demand for Core's fracture

diagnostic technologies and SuperHERO(TM) perforating charges when it is

compared with the year-over-year rig count increase in the United States of

only 7%. Because of growing demand for these proprietary technologies,

operating margins increased approximately 550 basis points from second

quarter 2007 levels to 32%. Operating income increased to $23,182,000, up

43% over year-ago second quarter totals.



    Core Lab technologies are proving to be critical components of

completion and fracture stimulation programs in tight gas sands and

especially in gas-shale reservoirs. SuperHERO charges are not only

producing superior perforations and elongated perforating tunnels, but they

are significantly lowering formation breakdown pressures, thereby reducing

the costs of frac programs. The Company reports that it has upgraded both

its HERO(TM) and SuperHERO perforating technologies through its continuous

technology improvement process. Changes have been made to the Company's

patented HWM(SM) powdered metal liner compositions and designs that have

improved formation penetration by as much as 15%.



    Core's ZeroWash(R), SpectraScan(TM), and SpectraChem(TM) fracture

diagnostic technologies are helping to optimize the superior performance of

multi-staged simultaneous fracs. In addition, these proprietary tracer

technologies are being used to evaluate oblique stress fields that are

created in the reservoir zone using alternating and diagonal -- rather than

offsetting -- staged frac patterns. The effectiveness of these so-called

"zipper fracs" is currently being evaluated for multi-staged frac programs

in the Barnett and several other prominent gas-shale reservoirs. Frac

sequences with as many as 10 to 15 stages are proving to be very effective

in reservoirs with certain geomechanical and petrophysical properties. Core

believes that the success of large-scale, multi-staged simultaneous and

zipper frac programs will not be limited to gas-shale reservoirs, but will

be applicable to all silica-rich, hard rock reservoirs worldwide.



    Reservoir Management



    Reservoir Management operations reported second quarter 2008 revenue of

$11,825,000 and operating income of $2,962,000, both lower than results

from the second quarter of 2007, during which several large contracts were

completed in Venezuela. Operating margins were 25% for the quarter.



    Core Laboratories initiated a new gas-shale study entitled Reservoir

Characterization and Production Properties of the Haynesville and Bossier

Shales at the request of 12 major acreage holders in northwestern Louisiana

and northeastern Texas. The study will be similar to the Marcellus Shale

Study currently being conducted for 18 companies in the Appalachian region.

The Company has also added two participants to its Reservoir

Characterization and Production Properties of Gas Shales study, the

industry's largest and most comprehensive study of the potential of

gas-shale plays throughout North America. The total number of companies

participating in the Gas Shales study now totals 60.



    Caspian Region Acquisition



    In July 2008, Core Laboratories acquired for cash Catoni Persa, an

Istanbul, Turkey-based petroleum testing laboratory specializing in the

characterization of crude oil and its derivative products. Catoni, with

2007 revenues of over $7 million, will expand Core's reservoir fluids and

analytical testing capabilities in the greater Caspian region. Istanbul

provides a regional base with a good infrastructure and a talented

workforce to bolster growth in the region.



    The Company is expanding its presence in this region where an

increasing number of crude-oil and natural gas developments are underway.

Moreover, Core has recently been awarded thousands of feet of core from

carbonate reservoirs in Iraq. Many additional projects are slated for Iraq

as stability returns to its petroleum-producing provinces.



    Initiation of Quarterly Dividend; Declaration of Special Dividend



    On 15 July 2008, the Company announced the initiation of a quarterly

cash dividend equal to $0.10 per share of common stock. On an annualized

basis, the quarterly cash dividend would equal a payout of $0.40 per share

of common stock. The initial quarterly cash dividend will be payable on 25

August 2008 to shareholders of record on 25 July 2008. Dutch withholding

tax will be deducted from the dividend at a rate of 15%.



    Core's Board of Supervisory Directors also has declared a special cash

dividend of $1.00 per share of common stock, payable on 25 August 2008 to

shareholders of record on 25 July 2008. Dutch withholding tax will be

deducted from the special dividend at a rate of 15%. Any determination to

declare a future quarterly or special cash dividend, as well as the amount

of any such cash dividend that may be declared, will be based on the

Company's financial position, earnings, earnings outlook, capital

expenditure plans, ongoing share repurchases, potential acquisition

opportunities, and other relevant factors at the time.



    Share Repurchase Program; Free Cash Flow



    At Core's Annual General Meeting on 28 May 2008, the Company received

shareholder authorization to repurchase up to 10% of its outstanding shares

until 28 November 2009. With the authorization, Core could repurchase up to

approximately 2,300,000 shares over the next 18 months. The Company

believes that its ability to combine recently announced quarterly and

special dividends with additional share repurchases provides greater

opportunity for the Company to maximize shareholder value.



    During the second quarter of 2008, Core Laboratories generated

$39,924,000 in free cash flow, defined as cash from operations minus

capital expenditures. This free cash will be used to pay the quarterly

dividend of $0.10 per share, which amounts to a total of approximately

$2,300,000, and to pay the special dividend of $1.00 per share, which

totals approximately $23,000,000. The remainder of the quarter's free cash

was used to fund the Catoni Persa acquisition. Since virtually all of the

second quarter free cash was allotted to paying dividends and the funding

of an acquisition, no shares were repurchased during the quarter.



    Non-Cash Charge For Notes



    During the second quarter of 2008, Core's shares traded above $123.19

for more than 20 of the final 30 trading days, thereby exceeding the

conversion price of $94.76 by 30% and enabling an early conversion option

for the Company's existing $300 million Senior Exchangeable Notes.

Therefore, per U.S. GAAP, the Notes, which are expected to mature in 2011,

were reclassified from a long-term to a short-term liability. Consequently,

transaction costs, which were being amortized over the expected life of the

Notes, were recorded as a non-cash expense in the quarter. This resulted in

a non-cash, non-recurring after-tax charge of approximately $3,200,000 in

the second quarter of 2008.



    Third Quarter and Full-Year 2008 Guidance



    For the third quarter of 2008, Core expects revenues to range between

$200,000,000 and $210,000,000, an increase of 18% to 24% over last year's

third quarter total. Earnings per diluted share are expected to range

between $1.55 to $1.61, up 20% to 25% from the $1.29 reported for the third

quarter of 2007. The third quarter 2008 guidance assumes year-over-year

incremental margins exceeding 40%.



    For the full-year 2008, Core now anticipates revenue in the

$785,000,000 to $795,000,000 range, up approximately 18% over full-year

2007 results. Core expects full-year 2008 earnings per diluted share to

range between $6.05 and $6.15, an increase of up to 26% over year-earlier

totals, excluding the effects of non-recurring charges. The new higher 2008

guidance assumes incremental margins of more than 40%. Previous annual

earnings guidance ranged from $5.90 to $6.05 per diluted share.



    Capital expenditures for 2008 are expected to be approximately

$25,000,000, down from the $25,000,000 to $30,000,000 reflected in previous

guidance, as several projects have been completed under the original

budgeted cost level. These expenditures will be used primarily for the

build-out of "The Canadian Center for Unconventional Oil and Natural Gas

Evaluation." Other significant 2008 capex projects include the construction

of a large laboratory facility to consolidate US Gulf Coast operations and

the continued expansion of Core's operations in the Middle East and

Asia-Pacific regions.



    The Company has scheduled a conference call to discuss this quarter's

earnings announcement. The call will begin at 7:30 a.m. CDT on Thursday, 24

July 2008. To listen to the call, please go to Core's website at

http://www.corelab.com.



    Core Laboratories N.V. (http://www.corelab.com) is a leading provider

of proprietary and patented reservoir description, production enhancement,

and reservoir management services used to optimize petroleum reservoir

performance. The Company has over 70 offices in more than 50 countries and

is located in every major oil-producing province in the world.



    This release includes forward-looking statements regarding the future

revenues, profitability, business strategies and developments of the

Company made in reliance upon the safe harbor provisions of Federal

securities law. The Company's outlook is subject to various important

cautionary factors, including risks and uncertainties related to the oil

and natural gas industry, business conditions, international markets,

international political climates and other factors as more fully described

in the Company's 2007 Form 10-K filed on 22 February 2008, and in other

securities filings. These important factors could cause the Company's

actual results to differ materially from those described in these

forward-looking statements. Such statements are based on current

expectations of the Company's performance and are subject to a variety of

factors, some of which are not under the control of the Company. Because

the information herein is based solely on data currently available, and

because it is subject to change as a result of changes in conditions over

which the Company has no control or influence, such forward-looking

statements should not be viewed as assurance regarding the Company's future

performance. The Company undertakes no obligation to publicly update any

forward looking statement to reflect events or circumstances that may arise

after the date of this press release.










                    CORE LABORATORIES N.V. & SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME

                (amounts in thousands, except per share data)

                                 (UNAUDITED)



                            Three Months Ended          Six Months Ended

                        30 June 2008  30 June 2007  30 June 2008  30 June 2007



    REVENUES              $197,688      $168,393      $377,125     $324,116



    OPERATING EXPENSES:

       Costs of services

        and sales          130,910       113,349       250,383      220,598

       General and

        administrative

        expenses             7,159         9,720        15,448       17,759

       Depreciation and

        amortization         5,276         4,897        10,515        9,475

       Other expense

        (income), net         (676)       (1,473)        1,492       (2,336)



    OPERATING INCOME        55,019        41,900        99,287       78,620

    Interest expense         5,076           635         5,720        1,267



    INCOME BEFORE INCOME

     TAX EXPENSE            49,943        41,265        93,567       77,353

    Income tax expense      16,232        12,462        30,523       23,288

    NET INCOME             $33,711       $28,803       $63,044      $54,065





    Diluted Earnings

     Per Share:             $ 1.38        $ 1.18         $2.60       $ 2.22



    WEIGHTED AVERAGE

     DILUTED COMMON

     SHARES OUTSTANDING     24,452        24,413        24,206       24,367



    SEGMENT INFORMATION:



    Revenues:

    Reservoir Description $114,157       $93,798      $214,658     $176,961

    Production Enhancement  71,706        60,761       138,730      119,568

    Reservoir Management    11,825        13,834        23,737       27,587

       Total              $197,688      $168,393      $377,125     $324,116



    Operating income

     (loss):

    Reservoir Description  $28,969       $21,426       $51,986      $38,199

    Production Enhancement  23,182        16,200        45,123       32,252

    Reservoir Management     2,962         4,117         7,189        7,814

       Subtotal             55,113        41,743       104,298       78,265

    Corporate and other        (94)          157        (5,011)         355

       Total               $55,019       $41,900       $99,287      $78,620







                    CORE LABORATORIES N.V. & SUBSIDIARIES

                    CONDENSED CONSOLIDATED BALANCE SHEETS

                            (amounts in thousands)



    ASSETS:                                  30 June 2008     31 December 2007

                                              (Unaudited)



    Cash and Cash Equivalents                   $54,628            $25,617

    Accounts Receivable, net                    149,142            137,231

    Inventories, net                             31,648             29,363

    Other Current Assets                         42,581             28,488

       Total Current Assets                     277,999            220,699



    Property, Plant and Equipment, net           95,256             93,038

    Intangibles, Goodwill and Other Long Term

     Assets, net                                181,171            191,053

       Total Assets                            $554,426           $504,790



    LIABILITIES AND SHAREHOLDERS' EQUITY:



    Accounts Payable                            $38,683            $39,861

    Senior Exchangeable Notes                   300,000                 --

    Other Current Liabilities                    51,611             58,179

       Total Current Liabilities                390,294             98,040



    Long-Term Debt and Lease Obligations             --            300,000

    Other Long-Term Liabilities                  54,850             44,607

    Shareholders' Equity                        109,282             62,143

       Total Liabilities and Shareholders'

        Equity                                 $554,426           $504,790







                    CORE LABORATORIES N.V. & SUBSIDIARIES

                CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

                            (amounts in thousands)

                                 (Unaudited)



                                                 Six Months Ended

                                                   30 June 2008



    CASH FLOWS FROM OPERATING ACTIVITIES             $73,403



    CASH FLOWS FROM INVESTING ACTIVITIES             (24,053)



    CASH FLOWS FROM FINANCING ACTIVITIES             (20,339)



    NET CHANGE IN CASH AND CASH EQUIVALENTS           29,011

    CASH AND CASH EQUIVALENTS, beginning of period    25,617

    CASH AND CASH EQUIVALENTS, end of period         $54,628







                             Non-GAAP Information

    Management believes that the exclusion of certain income and expenses

enables it to evaluate more effectively the Company's operations

period-over-period and to identify operating trends that could otherwise be

masked by the excluded items. For this reason, we used certain non-GAAP

measures that exclude these items; we felt that presentation provides the

public a clearer comparison with the numbers reported in prior periods.










                      Reconciliation of Operating Income

                            (amounts in thousands)



                                                Six Months Ended

                                                  30 June 2008



    Operating Income                                 $99,287

    Gain on sale of building                          (1,054)

    Severance                                            758

    Non-income related taxes                           5,030

    Operating Income excluding specific items       $104,021





                         Reconciliation of Net Income

                            (amounts in thousands)



                                         Three Months Ended   Six Months Ended

                                            30 June 2008        30 June 2008



    Net Income                                $33,711             $63,044

    Gain on sale of building (net of tax)          --                (709)

    Severance (net of tax)                         --                 510

    Net impact of non-income related taxes         --               3,771

    Debt acquisition costs related to Notes     3,229               3,450

    Net Income excluding specific items       $36,940             $70,066





                 Reconciliation of Diluted Earnings Per Share



                                         Three Months Ended   Six Months Ended

                                             30 June 2008       30 June 2008



    Diluted earnings per share                 $1.38                $2.60

    Gain on sale of building                      --                (0.03)

    Severance                                     --                 0.02

    Net impact of non-income related taxes        --                 0.16

    Debt acquisition costs related to Notes     0.13                 0.14

    Diluted earnings per share excluding

     specific items                            $1.51                $2.89



    Free Cash Flow



    Core uses the non-GAAP measure of free cash flow to evaluate its cash

flows and results of operations. Free cash flow is an important measurement

because it represents the cash from operations, in excess of capital

expenditures, available to operate the business and fund non-discretionary

obligations. Free cash flow is not a measure of operating performance under

GAAP, and should not be considered in isolation nor construed as an

alternative to operating income, net income, earnings per share, or cash

flows from operating, investing, or financing activities, each as

determined in accordance with GAAP. You should also not consider free cash

flow as a measure of liquidity. Moreover, since free cash flow is not a

measure determined in accordance with GAAP and thus is susceptible to

varying interpretations and calculations, free cash flow as presented may

not be comparable to similarly titled measures presented by other

companies.








                        Computation of Free Cash Flow

                            (amounts in thousands)

                                 (Unaudited)



                                                    Three Months

                                                       Ended

                                                    30 June 2008



    Net cash provided by operating activities          $47,963

    Less: capital expenditures                          (8,039)

    Free cash flow                                     $39,924