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Dresser-Rand Signs Important Agreement for Small-Scale LNG Production Technology License



    Dresser-Rand Signs Important Agreement for Small-Scale LNG Production
                              Technology License

Growing Market Opportunity for Dresser-Rand's Legacy Products and Recently
Acquired Guascor Engine Line

PR Newswire

HOUSTON, Oct. 25, 2012

HOUSTON, Oct. 25, 2012 /PRNewswire/ -- Dresser-Rand Company, a subsidiary of
Dresser-Rand Group Inc. ("Dresser-Rand") (NYSE: DRC) announced today that
Dresser-Rand Company has entered into an important definitive agreement with
Tarrytown, New York based Expansion Energy LLC.  Under the agreement,
Dresser-Rand is granted a worldwide exclusive (for capacities up to 100,000
gallons per day) license to Expansion Energy's proprietary VX™ Cycle
technology for the small-scale production of Liquefied Natural Gas (LNG).
      

"The agreement with Expansion Energy is consistent with our strategy to
provide high-speed rotating equipment solutions to the energy infrastructure
markets, said Jesus Pacheco, Dresser-Rand's Executive Vice President, New
Equipment Worldwide.  The agreement is important because it gives us exclusive
rights to serve a new and large market opportunity with our legacy products as
well as our recently acquired engine line."

According to Brad Dickson, Dresser-Rand's Vice President and Chief Marketing
Officer, "In our on-going evaluation of technologies to complete the value
chain for the burgeoning shale markets, as well as solutions for addressing
global natural gas flaring and the rapidly expanding markets for LNG vehicle
fueling, Expansion Energy's LNG production process met all of the requirements
we identified and embodies technology that we can bring to the market
quickly.  We already have several clients anxious to take multiple units to
fuel their fleet operations.  We presently believe that the market for this
technology will be in the range of $100 to $200 million within just the next 2
to 3 years, and will continue to grow robustly beyond that."

Dresser-Rand believes that the patented VX™ Cycle is the first technology to
provide a cost-effective small-scale LNG production process with capacities as
low as 1500 gallons per day—far smaller than any other LNG production system
commercially available today.  The mobile, skid mounted equipment
configuration for this process technology opens up a wide variety of
applications in markets currently underserved or not served at all.  
"Upstream" applications includes: the monetization of flared gas or associated
gas to increase revenues for oil companies and reduce their environmental
impact, the production of stranded natural gas fields which are not close to
existing pipeline infrastructure, and on-site fuel supply for drilling rigs
converted to run on LNG.  "Downstream" applications include the production of
vehicle-grade LNG, allowing LNG to compete effectively with diesel fuel on a
cost-per-energy-content (BTU) basis. The use of LNG fuel is increasing rapidly
for long-haul trucks; delivery fleets; buses; ships, barges and ferries;
railroad locomotives; and construction and mining equipment. 

As a first for the industry, the VX™ Cycle enables the "distributed"
production of LNG with small-scale plants, as the technology can utilize
natural gas from virtually any high- or low-pressure pipeline or distribution
line, or from stranded wells.  As such, the VX™ Cycle eliminates the need for
the costly trucking of LNG long distances from large, centralized plants to
LNG fueling depots, as is the practice today.  Instead, the VX™ Cycle produces
LNG right at the fueling station or at the wellhead.  The VX™ Cycle technology
can also be used to upgrade existing CNG stations to produce LNG and/or a
colder, denser CNG product with a higher BTU density versus standard CNG.

Under the agreement, Dresser-Rand will design, package and sell equipment
embodying the VX™ Cycle production technology including Dresser-Rand^®
reciprocating compressors and Guascor^® engine-generator sets, and associated
control systems.  Dresser-Rand advises that the technology is scalable to the
tens of thousands of gallons per day, producing either LNG or CCNG™ (Cold
Compressed Natural Gas) and will be designed in numerous skid-mounted, mobile
trailer-mounted and/or stationary modular configurations to suit its clients'
requirements.

David Vandor, Expansion Energy's Managing Director and Chief Technology
Officer states "Dresser-Rand is an ideal global partner to commercialize our
VX™ Cycle technology and integrate their engine and compressor solutions and
associated field support for the numerous upstream, midstream, and downstream
applications of the VX™ ^ Cycle."   

Driven by rapidly expanding global shale gas development, Dresser-Rand
predicts the market for small-scale LNG production plants is in the thousands
of units and growing.   The United States is the most rapidly growing market
and the substantial price disparity between diesel fuel and low priced natural
gas has oil-field service operators, oil and gas companies, shipping and
delivery companies, and downstream fuel distributors/marketers across the
country converting drilling rigs, transportation fleets, and retail fueling
stations along the United States interstate highway system to LNG fuel. 
Benefits for heavy-duty engines to use LNG include lower fuel costs, improved
air quality and reduced emissions to meet ever-more stringent environmental
regulations.   Today, of the approximately 1500 natural gas fueling stations
in the United States, only 60 are LNG based, with the balance dispensing
compressed natural gas (CNG).  LNG is critical for the long-haul, heavy-duty
truck market, and the deployment of VX™ Cycle plants from Dresser-Rand will be
a major step forward in building out the substantial infrastructure required
to make LNG fuels widely available and cost-effective.  

About Dresser-Rand

Dresser-Rand is among the largest suppliers of rotating equipment solutions to
the worldwide oil, gas, petrochemical, and process industries.  The Company
operates manufacturing facilities in the United States, France, United
Kingdom, Spain, Germany, Norway, India, and China, and maintains a network of
49 service and support centers (including 6 engineering and R&D centers)
covering more than 140 countries.  Dresser-Rand has principal offices in
Paris, France, and Houston, Texas. For more information, please visit
www.dresser-rand.com.

About Expansion Energy

Expansion Energy LLC is a developer and licensor of breakthrough technologies
designed to solve key challenges in the Energy and Industrial sectors,
substantially improving their operations, efficiency, sustainability and
profitability.  Cryogenics and the processing of gases are "common threads"
between each of the technologies in the company's diverse and ever-growing
portfolio of intellectual property, which includes numerous U.S. and
international patents.  Expansion Energy's innovations focus on improving the
production, transport, storage, processing and conversion of energy and
related natural resources.  The company's business model is primarily the
licensing of its technologies to Energy and Industrial companies worldwide. 
For more information, please visit www.expansion-energy.com.

This news release may contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995.  Forward-looking
statements include, without limitation, the Company's plans, objectives,
goals, strategies, future events, future bookings, revenues, or performance,
capital expenditures, financing needs, plans, or intentions relating to
acquisitions, business trends, executive compensation, and other information
that is not historical information.  The words "anticipates", "believes",
"expects", "intends", "appears", "outlook," and similar expressions identify
such forward-looking statements.  Although the company believes that such
statements are based on reasonable assumptions, these forward-looking
statements are subject to numerous factors, risks, and uncertainties that
could cause actual outcomes and results to be materially different from those
projected.  These factors, risks, and uncertainties include, among others, the
following:economic or industry downturns; the variability of bookings due to
volatile market conditions, subjectivity clients exercise in placing orders,
and timing of large orders; volatility and disruption of the credit markets;
its inability to generate cash and access capital on reasonable terms and
conditions; its inability to implement its business strategy to increase
aftermarket parts and services revenue; its ability to comply with local
content requirements; delivery delays by certain third party suppliers of
large equipment; its ability to implement potential tax strategies;
competition in its markets; failure to complete or achieve the expected
benefits from any future acquisitions; economic, political, currency and other
risks associated with international sales and operations; fluctuations in
currencies and volatility in exchange rates; loss of senior management;
environmental compliance costs and liabilities; failure to maintain safety
performance acceptable to its clients; failure to negotiate new collective
bargaining agreements; unexpected product claims and regulations; infringement
on its intellectual property or infringement on others'' intellectual
property; its pension expenses and funding requirements; difficulty in
implementing an information management system; and the Company's brand name
may be confused with others.  These and other risks are discussed in detail in
the Company's filings with the Securities and Exchange Commission at
www.sec.gov.  Actual results, performance, or achievements could differ
materially from those expressed in, or implied by, the forward-looking
statements.  The Company can give no assurances that any of the events
anticipated by the forward-looking statements will occur or, if any of them
does, what impact they will have on results of operations and financial
condition.  The company undertakes no obligation to update or revise
forward-looking statements, which may be made to reflect events or
circumstances that arise after the date made or to reflect the occurrence of
unanticipated events, except as required by applicable law.  For information
about Dresser-Rand, go to its website at www.dresser-rand.com.

DRC-FIN

SOURCE Dresser-Rand Company

Website: http://www.dresser-rand.com
Contact: Blaise Derrico, Vice-President Investor Relations, +1-713-973-5497
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