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Weatherford International Ltd.Presentation to LehmanSeptember 8, 2005

1

WFT History

2

($ in millions)

Inception:1987

CurrentWFT

Revenue negl. $ 4,600

EBITDA negl. $ 1,050

Book Equity $ 22 $ 5,200

Employees 598 24,500

Excluding Grant Prideco

Dividend(2000)

History: Financial Statistics

Current WFT is pro forma for Precision acquisition

3

History: Shareholder Returns160%

of the OSXreturns

0

500

1000

3000

4000

2000

5000

6000

7000

8000

9000

10,000

OSX formedin 1997

Since 1987 Start up: 28.61% CAGR$100 $10,150

May-87

Jan-88

Jan-89

Jan-90

Jan-91

Jan-92

Jan-93

Jan-94

Jan-95

Jan-96

Feb-97Ja

n-98Ja

n-99Ja

n-00Ja

n-01Ja

n-02Ja

n-03Ja

n-04Ja

n-05Ju

n-05

WFT OSX

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History: Significant Events

1941:WeatherfordSpring Co.founded

Enterra

1987: EVI, Inc. start up by current management

1994:NYSE listing

1994:NYSE listing

1995: Weatherford acquires Enterra

1998: EVI acquires Weatherford Enterra

2000: Grant Prideco dividended to shareholders

2005: WFT acquires Precision Energy Services and Int’l Contract Drilling divisions

Intense Acquisition Activity

IntenseAcquisition

Activity

Intense Acquisition Activity

Organic Focused Activity

2001: Sale of compression business to Universal Compression

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Current Overview

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Vital StatisticsSix months ended June 2005 Annualized (pro forma, in millions except employees & percentages)

Revenue from over 100 countries $ 4,643

Operating Income $ 652

Income from Continuing Operations $ 475

Capital Expenditures $ 460

Depreciation and Amortization $ 401

Employees 24,500

Percentage of Employees outside US 67%

United States35%

Latin America

11%

Eastern Hemisphere35%

Canada

19%

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Organizational Structure

Revenue $1,550

W Hemisphere 75%

E Hemisphere 25%

Op Income Margin 10.4%

Employees 7,960

Revenue $222

Number of Rigs

W Hemisphere 17

E Hemisphere 32

Op Income Margin 23.0%

Employees 1,640

($ in millions, excluding employees & facilities)(1H ’05 annualized)

Revenue $2,793

W Hemisphere 62%

E Hemisphere 38%

Op Income Margin 17.7%

Employees 14,300

Revenue $78

W Hemisphere 23%

E Hemisphere 77%

Op Income Margin 5.0%

Employees 340

730 Service Bases87 Manufacturing Facilities

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Evaluation, Drilling & Intervention Services: 60% of WFT

Drilling Services

• Directional• MWD• LWD• Rotary Steerable• Underbalanced • Managed Pressure• Drilling Products• Rentals• Casing Exit • Coiled Tubing Drilling• Drilling with Casing

Intervention Services

• Cased Hole Wireline• Slickline• Fishing• Thru Tubing

Evaluation Services

• Open Hole Wireline• Geoscience

Well Construction

• Tubular Running• Cementation• Liner Hangers• Inflatables• Expandable Solids

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Completion & Production Systems: 33% of WFT

Completion Systems

• Completion Tools

• Sand Screens

• Expandable Screens

ArtificialLift

• Progressing Cavity• Reciprocating• Gas Lift• Hydraulic• Electric Submersible

Production Optimization

• Lift Automation• Intelligent Completion• Fiber Optic Sensing• Field Optimization

Stimulation

• Fracturing Services• Production Chemicals

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Operating Results: WFT Pre-transaction

Q2 Q3 Q4 Q1 Q2

Drilling Services 424.9$ 450.2$ 494.4$ 486.6$ 533.4$

Production Systems 317.3 344.1 388.2 371.1 403.9

Total Revenues 742.2$ 794.3$ 882.6$ 857.7$ 937.3$

Drilling Services 87.0$ 97.9$ 108.7$ 112.2$ 121.0$

Production Systems 31.2 44.0 51.1 51.2 52.6

Research & Development (20.0) (20.4) (23.8) (21.0) (23.9)

Equity in Earnings 6.0 5.2 5.8 4.2 6.6

Corporate (12.2) (15.7) (16.7) (16.9) (17.3)

Total Operating Income 92.0$ 111.0$ 125.1$ 129.7$ 139.0$

Net Income from Continuing Operations 55.8$ 69.8$ 80.6$ 86.5$ 94.7$

EPS from Continuing Operations .40 .49 .55 .59 .64

2004 2005($ in millions, except EPS)

31%

25%

Excludes non-recurring charges and gains on sales of UCO common stock

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Balance Sheets($ in millions)

Pro forma *

•• Recent TransactionsRecent Transactions

Net Debt / Net Debt / CapitalizationCapitalization

~ 25.5%~ 25.5%

•• As of September 1, As of September 1, 20052005

a)a) Convertible Convertible DebenturesDebentures

Redemption Redemption 5.3M equiv. shares 5.3M equiv. shares

for $342Mfor $342MPartial ConversionPartial Conversion

3.7M shares3.7M shares

b)b) Precision Precision TransactionTransaction

June 30, 2005

June 30, 2005

ASSETSCash 305.7$ 102.3$ Accounts Receivable 809.4 1,048.4 Inventories 764.7 858.2 Other Current Assets 216.8 270.5

Total Current Assets 2,096.6$ 2,279.4$ Fixed Assets 1,427.9 2,179.2 Goodwill 1,666.4 2,722.8 Equity Investments 174.3 174.3 Other Assets 397.1 715.3

5,762.3$ 8,071.0$

LIABILITIES & SHAREHOLDERS' EQUITYCurrent Portion of Debt 613.0$ 364.0$ Current Liabilities 611.9 786.7 Long-Term Debt 829.0 1,529.0 Long-Term Liabilities 167.6 224.5 Shareholders' Equity 3,540.8 5,166.8

5,762.3$ 8,071.0$

Issued 26M shares, Issued 26M shares, US $944MUS $944M

*pro forma for Zero Coupon Debentures and Precision Transactions, excluding purchase accounting

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• Leverage Consolidation

• Leverage Infrastructure

• Leverage Technology Offering

Forward…

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Infrastructure

Region WFT PES

N. America 304 128

Europe/CIS 46 8

Middle East 40 12

S. America 87 21

Asia 55 11

Africa 12 6

Total 544 186

Service Locations Geographic Revenues

United States36%

Eastern Hemisphere46%

9%Canada

WFT Drilling Services

Precision Energy Services

2004

Latin America

9%

Eastern Hemisphere16%

United States26%

37%Canada Latin America

21%

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Leverage Consolidation

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Leverage Consolidation– U.S. Facilities

• 8 WFT facilities merge with PES

• 9 PES facilities merge with WFT

– Canada Facilities

• 5 WFT facilities merge with PES

• 2 proposed new facilities 1 facility

– Procurement

• Contracted services

• Raw materials

• Semi-finished products

– Overhead• Personnel

– 48 redundant positions

• Infrastructure– Benefits

– Systems, Telecommunication

– Insurance

– Research and Development• WFT MWD

• WFT Cased Hole Wireline

• PES UBS

• PES Motors

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Leverage Infrastructure

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• Following the Reservoirs: E Hemisphere

• Best in Class Infrastructure

• WFT Growth Track Record ’01 – ’05

• Accelerate Precision Energy Services Market Penetration

Leverage Infrastructure

E. Hemisphere Infrastructure

190 Service bases29 Manufacturing

facilities

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Shift to Eastern Hemisphere

• Shift to Eastern Hemisphere– North America ~ 35% – International ~ 65% (fastest growth)

*Source: Industry Sources, Company Estimates.

2005 E & P Expenditures ~ $ 187B

Eastern Hemisphere50%

United States25%

Canada10%

Latin America15%

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Weatherford Revenues($ in millions)

2001 2003 1H ’05 Annualized

Middle East

Rig Count 210 248 277

$ 214.0 $ 302.4 $ 429.2

Example: History of Middle East

+101%

+32%

Eastern Hemisphere - Growth Track Record

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Example Facility: Hassi Messaoud (Algeria)

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Leverage Technology

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Industry Overview

TheStructural &

Critical Factor

High elasticity to GNP growth

Insignificant spare capacity

Accelerating decline rates

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Oilfield Services Drive Technology

2004 R&D% of Revenues

OFS* 2.22%

E&P** .17%

E&P vs. OFS <1/13thOFS

DrivesTechnology

* BHI, BJS, HAL, SII, SLB, WFT** BP, ChevronTexaco, Exxon, Shell

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Oilfield Services Own Technology

Number of Issued Upstream Patents

20032002

* BHI, BJS, HAL, SII, SLB, WFT** BP, ChevronTexaco, Exxon, Shell

FourMajor Oil

Companies**

SixService

Companies*20002001

1996

1996199719981999

1997199819992000200120022003

0 100 200 300 400 500

Service Companies Lead Upstream

Innovation

600 700

2004

2004

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Research and Development

High R&D• Tripled in absolute dollars• Increased 70 basis points

’00 ’01 ’02 ’03 ’04 ’05*

$135.0

2.9%

R&D $ 41.0 $ 50.2 $ 79.2 $ 82.4 $ 83.6

% of revenue 2.2% 2.2% 3.5% 3.2% 2.7%

WFT Historical:

Precision Energy Services• R & D spend $37.5 million (2004)• 5.6% of revenue

* pro forma

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Technology Offerings : Industrial FitExample: Eastern Hemisphere Underbalanced • Majority wells directional – horizontal

– Reentry– Development drilling→ Electromagnetic technology required→ Operating logistics

• Rotary Steerable Systems– 4-3/4” RSS for 6” hole size– Point to Bit– Optimal hole shape

LWD + RSS + UBS

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Technology Strength• EM MWD• LWD• Rotary Steerable• Underbalanced

Systems• Managed Pressure• Expandable Solids• Drilling Products

– High-torque– High-temperature– Extended reach

• Memory Logging• Expandable Screens• Intelligent Completion• Fiber Optic Sensing• Optimization Software• Hybrid Lift

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This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995

concerning, among other things, the prospects for Weatherford’s operations which are subject to certain risks, uncertainties and

assumptions. These risks and uncertainties, which are more fully described in Weatherford International Ltd.’s reports and registration

statements filed with the SEC, include the impact of oil and natural gas prices and worldwide economic conditions on drilling activity, the

demand for and pricing of Weatherford's products and services and domestic and international economic and regulatory conditions. Should

one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material aspects

from those currently anticipated.