Nabors Announces Redemption of Notes

    HAMILTON, Bermuda, July 1 /CNW/ -- Nabors Industries Ltd. (NYSE:   NBR)
("Nabors") announced today that its wholly-owned subsidiary, Nabors
Industries, Inc. ("NII"), has either redeemed or exchanged the full $146,000
aggregate outstanding principal amount of its Zero Coupon Senior Exchangeable
Notes due 2023 (the "Original 2023 Notes") and the full $699,854,000
outstanding aggregate principal amount of its Series B Zero Coupon Senior
Exchangeable Notes due 2023 (together with the Original 2023 Notes, the "2023
Notes").  NII has also notified the trustee to proceed with redemption of the
remaining $82.8 million outstanding aggregate principal amount at maturity of
its Zero Coupon Senior Convertible Debentures due 2021 (the "2021 Notes"),
CUSIP No. 629568AF3, that were not repurchased by NII in accordance with the
holders' put option on the fifth anniversary of the 2021 Notes in February
    For the 2023 Notes, holders representing an aggregate principal amount of
$699,357,000, or 99.91% of the $700 million in 2023 Notes, exercised their
right to exchange their 2023 Notes into the notional value of an amount of
common stock of Nabors.  Accordingly, such holders will be receiving, or have
already received, cash representing the aggregate principal amount of their
2023 Notes plus a total of approximately 5.25 million shares of common stock
of Nabors with a fair value of approximately $249.2 million, representing the
premium in the notional exchange which NII elected to satisfy with common
shares of Nabors in accordance with the applicable indenture.  The premium due
was computed in accordance with the indentures utilizing the five or ten day
volume weighted average price, as applicable, of common stock of Nabors
beginning on the second trading day following receipt of the holder's exchange
    The aggregate value of this premium for both issues equates to an
effective annual interest rate of 6.28% over the five year term for the $700
million in principal amount of the 2023 Notes.  To mitigate the dilutive
impact of the share delivery to the Note holders, Nabors repurchased through
an affiliate approximately 3.5 million shares of its common stock in the open
market during May and early June 2008.   The average price of these
repurchases was approximately $41.68 per share.
    The Nabors companies own and actively market a fleet of approximately 537
land drilling and approximately 747 land workover and well-servicing rigs in
North America. Nabors' actively marketed offshore fleet consists of
approximately 36 platform rigs, 12 jack-up units and 4 barge rigs in the
United States and multiple international markets.  In addition, Nabors
manufactures top drives and drilling instrumentation systems and provides
comprehensive oilfield hauling, engineering, civil construction, logistics and
facilities maintenance, and project management services.  Nabors also holds
interest in various oil and gas properties, both in North America and
    internationally.  Nabors participates in most of the significant oil, gas
and geothermal markets in the world.
    The information above includes forward-looking statements within the
meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934.
Such forward-looking statements are subject to certain risks and
uncertainties, as disclosed by Nabors from time to time in its filings with
the Securities and Exchange Commission.  As a result of these factors, Nabors'
actual results may differ materially from those indicated or implied by such
forward-looking statements.
    For further information, please contact Dennis A. Smith, Director of
Corporate Development of Nabors Corporate Services, Inc. at 281-775-8038.  To
request Investor Materials, call our corporate headquarters in Hamilton,
Bermuda at 441-292-1510 or via email at

For further information:

For further information: Dennis A. Smith, Director of Corporate 
Development of Nabors Corporate Services, Inc., +1-281-775-8038, or investors,
 +1-441-292-1510,, both of Nabors Industries Ltd.

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Nabors Industries Ltd.

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