/C O R R E C T I O N -- Nabors Industries Ltd./

In the news release, Nabors (NYSE: NBR) 2Q 2008 EPS $0.67 Despite ($0.06)
from Tax Adjustment, Share Count and E&P Hedging Loss, issued earlier today by
Nabors Industries Ltd. over PR Newswire, we are advised by the company that in
the tables marked "CONDENSED CONSOLIDATED BALANCE SHEETS", the other long term
assets for June 30, 2008 should have read "550,333", rather than "620,430", as
originally issued inadvertently. Complete, corrected release follows:Nabors 2Q
2008 EPS $0.67 Despite ($0.06) from Tax Adjustment, Share Count and
E&P Hedging Loss
HAMILTON, Bermuda, July 22 /PRNewswire-FirstCall/ -- Nabors Industries
Ltd. (NYSE: NBR) today announced its results for the second quarter and six
months of 2008. Adjusted income derived from operating activities was $265.9
million for the current quarter compared to $280.5 million in the second
quarter of last year and $287.2 million in the first quarter of this year.
Net Income was $194.4 million ($0.67 per diluted share) for the current
quarter compared to $228.3 million ($0.79 per diluted share) in the second
quarter of last year and $230.5 million ($0.81 per diluted share) in the first
quarter of this year. Operating revenues and Earnings from unconsolidated
affiliates was $1.28 billion in the current quarter compared to $1.14 billion
in the second quarter of last year and $1.30 billion in the first quarter of
this year. For the six months ended June 30, 2008, adjusted income derived
from operating activities was $553.1 million compared to $620.6 million in the
first six months of 2007. Net income for the first six months of 2008 was
$424.9 million ($1.48 per diluted share) compared to $490.5 million ($1.71 per
diluted share) in the first six months of 2007. Operating revenues and
Earnings from unconsolidated affiliates for the first six months of 2008 rose
to $2.57 billion, up from $2.39 billion for the first six months of 2007.
"Our second quarter saw a dramatic and rapid turnaround in activity and in
the outlook for our North American businesses," said Gene Isenberg, Nabors
Chairman and CEO, "although non-operational items obscured bottom line
results. It is now clear that our operating income bottomed out in the second
quarter and the outlook for the second half and beyond is improving more
rapidly than we had anticipated.
"The quarter's net income and per share results were reduced by
approximately six cents per diluted share as a result of an adjustment to our
full year estimated taxes ($0.03), an accounting rules dictated increase in
diluted shares ($0.01), and the non-cash mark-to-market loss on certain
forward hedges in our First Reserve E&P joint venture entities ($0.02).
"Operationally, we achieved improving sequential results in every
significant business unit except for Canada and Alaska, which were down
seasonally although less than anticipated. The most significant evidence of
the turn around in our businesses is demonstrated by more than 20 term
contract commitments for additional new-built rigs that we received since last
quarter, the preponderance of which were secured by our US Lower 48 Land
Drilling unit. There are also a large number of additional term commitments
pending. We have recently placed an order with National Oilwell Varco for a
number of their Rapid Rigs(TM), which we feel are ideally suited for the
shallower shale plays that are increasingly active.
"In our US Lower 48 Land Drilling unit we have seen the working rig count
increase by 31 rigs over our first quarter average. Our US Lower 48 rig count
now stands at 257 rigs after averaging 242.3 rigs in the second quarter and to
225.7 in the first quarter. Our second quarter average margins were
essentially flat sequentially at $8,900 per rig day. This is a combination of
lower but higher than expected margins on renewing term contracts, offset by
idle rigs returning to work at improving rates and the attainment of full
margins on our 75 new rigs deployed to date. Our new PACE rigs continue to
set records in virtually every area in which they operate and the magnitude of
this quarter's new build commitments and the higher rates they are commanding
substantiates their value.
"Our US Offshore operations experienced a very good quarter as income
rebounded sharply from the lackluster first quarter. This primarily was due
to more consistent utilization of our jackups and $1.6 million (pre-tax) in
business interruption insurance associated with the Barge Rig 100 fire last
summer. Rates and activity are improving and it appears that the current
strong environment will continue for the foreseeable future. We do not expect
to see the substantial slowdown in third quarter activity that has
characterized the last two hurricane seasons. Rather we are seeing
opportunities for additional rigs and interest is increasing for longer-term
contract commitments.
"Although our US Well Servicing unit is not doing well, we still posted a
slightly improved quarter on higher hours. This market is improving and we
have recently instituted price increases in most regions in which we operate.
We are regaining market share in certain markets where price competition has
been acute and we expect further gains over the next two quarters. Customer
recognition of the inherent advantages of the new technology that is
incorporated in our Millennium rigs is increasing broadly. We will take
delivery of 10 of the 400 horsepower version of these Millennium rigs during
the second half of this year, with potential for another 90 thereafter.
"Our International unit posted a significant sequential improvement and
expects to achieve much larger sequential increases over the next two
quarters. The quarter was aided by $3.9 million (pre-tax) in business
interruption insurance for one of our small jackups that incurred flooding
damage during mobilization last fall. The largest increase will come from the
full impact of our new jackup rig 660, which incurred delays and start up
issues which hurt its second quarter contribution. This is followed by the
start-up of jackup rig 657 in early July and the full contribution of four
other land rigs that commenced in the first half, all of which also had some
delays that impacted the second quarter. All of these rigs are now operating
satisfactorily and contributing as expected. Six other land rigs are set to
commence operations during the third quarter, with potentially as many as 13
other rigs in the fourth quarter. The international outlook remains strong in
virtually every region and new rig possibilities continue to materialize. We
still anticipate an increase in operating income of approximately 40% over
2007's results.
"Alaska was down slightly as the winter exploration season wound down
early in the quarter. This market is seeing healthy increases in activity and
rates both in and away from the established producing fields on the North
Slope and in the Cook Inlet. We expect to see a large increase in income
contribution over the next two years, albeit from a small base as several
incremental development projects commence and exploration activity increases.
Results will be bolstered by two new built Heli-portable rigs which commenced
operations near the start of 2008, and by two legacy rigs which are receiving
standby revenue while being upgraded and refurbished for long term contracts.
Our new Coiled Tubing/Stem drilling rig, which is the only such rig capable of
drilling to 15,000 feet, will commence operations in early 2009 and we have
two proposals pending for additional multi-year contracts.
"As anticipated, Canada experienced the worst quarter in its history
during this year's spring thaw, although it was modestly better than we had
expected. The outlook has improved substantially over the last two months,
although it is still too early to be definitive regarding the timing and
extent of the recovery. To date the third quarter has been plagued by wetter
than normal weather, with approximately 30 rigs currently waiting to commence
contracts. The extent of future activity in Alberta is still dependant upon
modifications to the provincial royalty increases there which are set to
commence in 2009 and which have driven several operators to deploy capital
elsewhere. Meanwhile, in British Columbia we are seeing rapidly accelerating
activity, particularly in the new shale plays of Horn River and Montney. We
have a large number of both new and legacy rig commitments for these and other
emerging shale plays in other areas of Canada and we are currently negotiating
commitments for several more. We will also soon deploy one of our new Heli-
portable rigs for what looks to be year-around work in Horn River, where no
roads currently exist and where access has heretofore been limited to winter
only.
"Our Other Operating Segments posted a very good quarter and continues to
enjoy a very strong outlook. The primary contributor to this unit's
performance was our Canrig entity where sales are increasing significantly,
particularly to third parties. Our instrumentation and data management entity
and our directional drilling unit also posted very good results despite the
seasonally weak Canadian market. Our 50% owned Alaskan construction and
logistics joint ventures contributed less significantly due to the customary
spring quarter drop off in activity and income.
"I remain very pleased with the performance of our oil and gas entities,
although operating income results will not be evident until the latter part of
the year. Even though we have experienced accounting losses associated with
the commodity price hedges we have in place, they are providing us with
exactly what we envisioned, that being higher than expected returns while
substantially eliminating downside risk. We continue to find very attractive
investment opportunities and we have acreage holdings in most of the emerging
North American shale plays. Not only is this business poised to contribute
significantly in the near future, it is providing us with valuable insight to
better target our rig marketing activities.
"Earlier today, we closed on the issuance, through a wholly owned
subsidiary, an additional $400 million of our 6.15% Senior Notes due 2018.
The notes were issued at an offering price of 97.192%, plus accrued interest
from February 20, 2008. This was an additional placement of the $575 million
in notes we issued in February of this year. This brings to $975 million the
aggregate total of these notes which are fully and unconditionally guaranteed
by Nabors Industries Ltd. These notes will provide financing for what we
think will be a large and profitable investment program for new built rigs and
other attractive capital expenditures.
"Our expectations for 2009 are increasing although we will be subject to a
recent non-cash, non-operational, accounting rule change regarding convertible
debt which will effect our net income and earnings per share starting with the
beginning of 2009. This rule will require us to record non-cash interest
expense on our 0.94% coupon convertible debt due 2011 in an amount equal to
the extent that the actual coupon represents a discount to our estimated
borrowing rate for conventional debt at the time the convertible notes were
issued. We will also be required to restate three years of results for any
convertible issues that were outstanding during that period. The offsetting
entry will be to treat the lower coupon as a debt discount on our balance
sheet and to accrete the value of the debt as the non-cash interest expense is
recorded. This change will have no effect on the real economic results of our
business but will obviously affect our reported GAAP earnings.
"I remain convinced of the strength of the North American gas markets,
short-term volatility notwithstanding. Gas remains the most attractive fuel
and there is minimal likelihood that LNG will be a negative price factor in
these markets for the foreseeable future. This puts Nabors in an advantageous
position to prosper going forward across all of our North American business
lines and, when coupled with the ongoing strength and growing market share we
enjoy internationally, promises a very bright future."
The Nabors companies own and operate approximately 548 land drilling and
approximately 749 land workover and well-servicing rigs in North America.
Nabors' actively marketed offshore fleet consists of; 36 platform rigs, 13
jackup 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 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 mark.andrews@nabors.com.

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three Months Ended
-----------------------------------
June 30, March 31,
----------------------- ----------
(In thousands, except per share
amounts) 2008 2007 2008
---------- ---------- ----------
Revenues and other income:
Operating revenues $1,282,400 $1,134,684 $1,299,858
Earnings (loss) from
unconsolidated affiliates (4,033) 3,436 (4,451)
Investment (loss) income 25,057 (9,272) 26,182
---------- ---------- ----------
Total revenues and other
income 1,303,424 1,128,848 1,321,589
---------- ---------- ----------
Costs and other deductions:
Direct costs 740,178 637,104 747,770
General and administrative
expenses 116,914 99,952 111,321
Depreciation and amortization 148,023 111,372 135,478
Depletion 7,343 9,160 13,685
Interest expense 21,676 13,733 18,109
Losses (gains) on sales of
long-lived assets, impairment
charges and other expense
(income), net 3,158 (39,634) 8,097
---------- ---------- ----------
Total costs and other
deductions 1,037,292 831,687 1,034,460
---------- ---------- ----------
Income from continuing operations
before income taxes 266,132 297,161 287,129
---------- ---------- ----------
Income tax expense (benefit):
Current 39,759 53,973 99,293
Deferred 32,012 22,326 (42,670)
---------- ---------- ----------
Income tax expense 71,771 76,299 56,623
---------- ---------- ----------
Income from continuing operations,
net of tax 194,361 220,862 230,506
Income from discontinued
operations, net of tax - 7,487 -
---------- ---------- ----------
Net income $ 194,361 $ 228,349 $ 230,506
---------- ---------- ----------
Earnings per share (1):
Basic from continuing operations $ .70 $ .79 $ .83
Basic from discontinued operations $ - $ .03 $ -
---------- ---------- ----------
Total Basic $ .70 $ .82 $ .83
---------- ---------- ----------
Diluted from continuing operations $ .67 $ .77 $ .81
Diluted from discontinued
operations $ - $ .02 $ -
---------- ---------- ----------
Total Diluted $ .67 $ .79 $ .81
---------- ---------- ----------

Weighted-average number of common
shares outstanding (1):
Basic 277,719 279,253 277,584
---------- ---------- ----------
Diluted 291,454 287,898 283,361
---------- ---------- ----------
Adjusted income derived from
operating activities (2) $ 265,909 $ 280,532 $ 287,153
========== ========== ==========

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)
----------------------------
Six Months Ended
----------------------------
June 30,
----------------------------
(In thousands, except per share
amounts) 2008 2007
---------- ----------
Revenues and other income:
Operating revenues $2,582,258 $2,370,697
Earnings (loss) from
unconsolidated affiliates (8,484) 15,877
Investment (loss) income 51,239 19,437
---------- ----------
Total revenues and other income 2,625,013 2,406,011
---------- ----------
Costs and other deductions:
Direct costs 1,487,948 1,321,401
General and administrative
expenses 228,235 213,849
Depreciation and amortization 283,501 214,980
Depletion 21,028 15,785
Interest expense 39,785 26,785
Losses (gains) on sales of long-
lived assets, impairment charges
and other expense (income), net 11,255 (25,749)
---------- ----------
Total costs and other deductions 2,071,752 1,767,051
---------- ----------
Income from continuing operations
before income taxes 553,261 638,960
---------- ----------
Income tax expense (benefit):
Current 139,052 159,827
Deferred (10,658) 1,381
---------- ----------
Income tax expense 128,394 161,208
---------- ----------
Income from continuing operations,
net of tax 424,867 477,752
Income from discontinued operations,
net of tax - 12,759
---------- ----------
Net income $ 424,867 $ 490,511
---------- ----------
Earnings per share (1):
Basic from continuing operations $ 1.53 $ 1.72
Basic from discontinued operations $ - $ .04
---------- ----------
Total Basic $ 1.53 $ 1.76
---------- ----------
Diluted from continuing operations $ 1.48 $ 1.67
Diluted from discontinued
operations $ - $ .04
---------- ----------
Total Diluted $ 1.48 $ 1.71
---------- ----------

Weighted-average number of common
shares outstanding (1):
Basic 277,651 278,098
---------- ----------
Diluted 287,407 286,356
---------- ----------

Adjusted income derived from
operating activities (2) $553,062 $620,559
========== ==========

(1) See "Computation of Earnings Per Share" included herein as a separate
schedule.

(2) Adjusted income derived from operating activities is computed by:
subtracting direct costs, general and administrative expenses,
depreciation and amortization, and depletion expense from Operating
revenues and then adding Earnings from unconsolidated affiliates.
Such amounts should not be used as a substitute to those amounts
reported under accounting principles generally accepted in the United
States of America (GAAP). However, management evaluates the
performance of our business units and the consolidated company based
on several criteria, including adjusted income derived from operating
activities, because it believes that this financial measure is an
accurate reflection of the ongoing profitability of our company. A
reconciliation of this non-GAAP measure to income from continuing
operations before income taxes, which is a GAAP measure, is provided
within the table set forth immediately following the heading "Segment
Reporting".

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

June 30, March 31, December 31,
(In thousands, except ratios) 2008 2008 2007
----------- ----------- -----------
ASSETS
Current assets:
Cash and short-term investments $ 1,236,547 $ 1,450,244 $ 767,051
Accounts receivable, net 1,083,748 1,112,190 1,039,238
Other current assets 410,051 392,291 398,823
----------- ----------- -----------
Total current assets 2,730,346 2,954,725 2,205,112
Long-term investments and other
receivables 239,866 310,938 359,534
Property, plant and equipment, net 7,020,941 6,758,516 6,632,612
Goodwill 363,158 360,709 368,432
Other long-term assets 550,333 520,335 537,692
----------- ----------- -----------
Total assets $10,904,644 $10,905,223 $10,103,382
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Current portion of long-term debt $588,847 $700,000 $700,000
Other current liabilities 776,833 786,130 794,132
----------- ----------- -----------
Total current liabilities 1,365,680 1,486,130 1,494,132
Long-term debt 3,822,285 3,881,575 3,306,433
Other long-term liabilities 783,020 749,678 788,696
----------- ----------- -----------
Total liabilities 5,970,985 6,117,383 5,589,261
Shareholders' equity 4,933,659 4,787,840 4,514,121
----------- ----------- -----------
Total liabilities and
shareholders' equity $10,904,644 $10,905,223 $10,103,382
=========== =========== ===========

Cash, short-term and long-term
investments (1) $ 1,510,842 $ 1,821,043 $ 1,179,639

Funded debt to capital ratio: (2)
- Gross 0.45 : 1 0.47 : 1 0.44 : 1
- Net of cash and investments 0.35 : 1 0.34 : 1 0.36 : 1
Interest coverage ratio: (3) 25.7 : 1 29.6 : 1 32.5 : 1

(1) The June 30, 2008, March 31, 2008 and December 31, 2007 amounts
include $34.4 million, $59.9 million and $53.1 million, respectively,
in cash proceeds receivable from brokers from the sale of certain
investments that are included in other current assets. These
proceeds were received during the following respective month.

(2) The gross funded debt to capital ratio is calculated by dividing
funded debt by funded debt plus deferred tax liabilities net of
deferred tax assets plus capital. Funded debt is defined as the sum
of (1) short-term borrowings, (2) current portion of long-term debt
and (3) long-term debt. Capital is defined as shareholders' equity.
The net funded debt to capital ratio is calculated by dividing net
funded debt by net funded debt plus deferred tax liabilities net of
deferred tax assets plus capital. Net funded debt is defined as the
sum of (1) short-term borrowings, (2) current portion of long-term
debt and (3) long-term debt reduced by the sum of cash and cash
equivalents and short-term and long-term investments. Capital is
defined as shareholders' equity. Both of these ratios are a method
for calculating the amount of leverage a company has in relation to
its capital. The net funded debt to capital ratio is not a measure
of operating performance or liquidity defined by accounting
principles generally accepted in the United States of America and may
not be comparable to similarly titled measures presented by other
companies.

(3) The interest coverage ratio is a trailing twelve-month computation of
the sum of income from continuing operations before income taxes,
interest expense, depreciation and amortization, and depletion
expense less investment income and then dividing by interest expense.
This ratio is a method for calculating the amount of operating cash
flows available to cover interest expense. The interest coverage
ratio from continuing operations is not a measure of operating
performance or liquidity defined by accounting principles generally
accepted in the United States of America and may not be comparable to
similarly titled measures presented by other companies.

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

SEGMENT REPORTING
(Unaudited)

The following tables set forth certain information with respect to our
reportable segments and rig activity:

Three Months Ended
----------------------------------
June 30, March 31,
--------------------- -----------
(In thousands, except rig activity) 2008 2007 2008

Reportable segments:
Operating revenues and Earnings from
unconsolidated affiliates from
continuing operations: (1)
Contract Drilling: (2)
U.S. Lower 48 Land Drilling $ 438,848 $ 426,787 $ 407,061
U.S. Land Well-servicing 182,222 182,410 171,141
U.S. Offshore 65,723 60,316 51,455
Alaska 45,114 36,777 54,369
Canada 67,782 75,088 178,852
International 342,892 261,262 303,572
---------- ---------- ----------
Subtotal Contract Drilling (3) 1,142,581 1,042,640 1,166,450
Oil and Gas (4) (5) 11,352 18,110 14,040
Other Operating Segments (6) (7) 172,865 140,024 165,782
Other reconciling items (8) (48,431) (62,654) (50,865)
---------- ---------- ----------
Total $1,278,367 $1,138,120 $1,295,407
========== ========== ==========
Adjusted income (loss) derived from
operating activities from continuing
operations: (1)
Contract Drilling: (2)
U.S. Lower 48 Land Drilling $ 134,322 $ 154,667 $ 126,871
U.S. Land Well-servicing 31,468 40,105 30,386
U.S. Offshore 17,983 19,206 6,458
Alaska 13,466 8,225 17,783
Canada (14,326) (7,992) 41,973
International 101,752 85,409 90,650
---------- ---------- ----------
Subtotal Contract Drilling 284,665 299,620 314,121

Oil and Gas (1,645) 3,374 (4,852)
Other Operating Segments 19,006 6,739 12,434
Other reconciling items (9) (36,117) (29,201) (34,550)
---------- ---------- ----------
Total 265,909 280,532 287,153
Interest expense (21,676) (13,733) (18,109)
Investment (loss) income 25,057 (9,272) 26,182
(Losses) gains on sales of long-lived
assets, impairment charges and other
expense (income), net (3,158) 39,634 (8,097)
---------- ---------- ----------
Income from continuing operations
before income taxes $ 266,132 $ 297,161 $ 287,129
========== ========== ==========

Rig activity:
Rig years: (10)
U.S. Lower 48 Land Drilling 242.3 228.5 225.7
U.S. Offshore 17.1 17.6 16.1
Alaska 10.4 8.8 10.6
Canada 16.9 18.5 49.4
International (11) 121.5 117.1 117.8
---------- ---------- ----------
Total rig years 408.2 390.5 419.6
========== ========== ==========
Rig hours: (12)
U.S. Land Well-servicing 272,101 291,430 259,477
Canada Well-servicing 40,257 41,613 79,137
---------- ---------- ----------
Total rig hours 312,358 333,043 338,614
========== ========== ==========

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

SEGMENT REPORTING
(Unaudited)

The following tables set forth certain information with respect to our
reportable segments and rig activity:

Six Months Ended
--------------------------
June 30,
--------------------------
(In thousands, except rig activity) 2008 2007
---------- ----------
Reportable segments:
Operating revenues and Earnings from
unconsolidated affiliates from
continuing operations: (1)
Contract Drilling: (2)
U.S. Lower 48 Land Drilling $ 845,909 $ 879,383
U.S. Land Well-servicing 353,363 364,628
U.S. Offshore 117,178 116,091
Alaska 99,483 84,613
Canada 246,634 268,368
International 646,464 485,744
---------- ----------
Subtotal Contract Drilling (3) 2,309,031 2,198,827
Oil and Gas (4) (5) 25,392 31,239
Other Operating Segments (6) (7) 338,647 270,374
Other reconciling items (8) (99,296) (113,866)
---------- ----------
Total $2,573,774 $2,386,574
========== ==========
Adjusted income (loss) derived from
operating activities from continuing
operations: (1)
Contract Drilling: (2)
U.S. Lower 48 Land Drilling $261,193 $ 327,593
U.S. Land Well-servicing 61,854 83,461
U.S. Offshore 24,441 34,255
Alaska 31,249 24,792
Canada 27,647 45,136
International 192,402 151,427
---------- ----------
Subtotal Contract Drilling 598,786 666,664

Oil and Gas (6,497) 4,502
Other Operating Segments 31,440 18,333
Other reconciling items (9) (70,667) (68,940)
---------- ----------
Total 553,062 620,559
Interest expense (39,785) (26,785)
Investment (loss) income 51,239 19,437
(Losses) gains on sales of long-lived
assets, impairment charges and other
expense (income), net (11,255) 25,749
---------- ----------
Income from continuing operations before
income taxes $ 553,261 $ 638,960
========== ==========

Rig activity:
Rig years: (10)
U.S. Lower 48 Land Drilling 234.0 235.7
U.S. Offshore 16.6 17.4
Alaska 10.5 9.1
Canada 29.8 38.2
International (11) 119.6 114.4
---------- ----------
Total rig years 410.5 414.8
========== ==========
Rig hours: (12)
U.S. Land Well-servicing 531,578 590,518
Canada Well-servicing 119,394 139,201
---------- ----------
Total rig hours 650,972 729,719
========== ==========

(1) All segment information excludes the Sea Mar business, which has been
classified as a discontinued operation.

(2) These segments include our drilling, workover and well-servicing
operations, on land and offshore.

(3) Includes earnings (losses), net, from unconsolidated affiliates,
accounted for by the equity method, of $2.8 million, $.7 million and
$6.8 million for the three months ended June 30, 2008 and 2007 and
March 31, 2008, respectively, and $9.6 and $2.5 million for six
months ended June 30, 2008 and 2007, respectively.

(4) Represents our oil and gas exploration, development and production
operations.

(5) Includes earnings (losses), net, from unconsolidated affiliates,
accounted for by the equity method, of ($6.7) million, ($.8) million
and ($17.9) million for the three months ended June 30, 2008 and
2007 and March 31, 2008, respectively, and ($24.6) million and ($.8)
million for the six months ended June 30, 2008 and 2007,
respectively.

(6) Includes our drilling technology and top drive manufacturing,
directional drilling, rig instrumentation and software, and
construction and logistics operations.

(7) Includes earnings (losses), net, from unconsolidated affiliates,
accounted for by the equity method, of ($.1) million, $3.5 million
and $6.7 million for the three months ended June 30, 2008 and 2007
and March 31, 2008, respectively, and $6.6 million and $14.2 million
for the six months ended June 30, 2008 and 2007, respectively.

(8) Represents the elimination of inter-segment transactions.

(9) Represents the elimination of inter-segment transactions and
unallocated corporate expenses.

(10) Excludes well-servicing rigs, which are measured in rig hours.
Includes our equivalent percentage ownership of rigs owned by
unconsolidated affiliates. Rig years represent a measure of the
number of equivalent rigs operating during a given period. For
example, one rig operating 182.5 days during a 365-day period
represents 0.5 rig years.

(11) International rig years include our equivalent percentage ownership
of rigs owned by unconsolidated affiliates which totaled 4.0 years
during the three months ended June 30, 2008 and 2007 and March 31,
2008 and the six months ended June 30, 2008 and 2007, respectively

(12) Rig hours represents the number of hours that our well-servicing rig
fleet operated during the period.

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

COMPUTATION OF EARNINGS PER SHARE
(Unaudited)

A reconciliation of the numerators and denominators of the basic and
diluted earnings per share computations is as follows:

Three Months Ended
-----------------------------------
June 30, March 31,
----------------------- -----------
(In thousands, except per share amounts) 2008 2007 2008
----------- ----------- -----------
Net income (numerator):
Income from continuing
operations, net of tax -
basic $ 194,361 $ 220,862 $ 230,506
Add interest expense on assumed
conversion of our zero coupon
convertible/exchangeable senior
debentures/notes, net of tax:
$2.75 billion due 2011 (1) - - -
$82.8 million due 2021 (2) - - -
$700 million due 2023 (3) - - -
----------- ----------- -----------
Adjusted income from continuing
operations, net of tax -
diluted 194,361 220,862 230,506
Income from discontinued
operations, net of tax - 7,487 -
----------- ----------- -----------
Total adjusted net income $ 194,361 $ 228,349 $ 230,506
----------- ----------- -----------
Earnings per share:
Basic from continuing operations $ .70 $ .79 $ .83
Basic from discontinued
operations $ - $ .03 $ -
----------- ----------- -----------
Total Basic $ .70 $ .82 $ .83
----------- ----------- -----------
Diluted from continuing
operations $ .67 $ .77 $ .81
Diluted from discontinued
operations $ - $ .02 $ -
----------- ----------- -----------
Total Diluted $ .67 $ .79 $ .81
----------- ----------- -----------
Shares (denominator):
Weighted-average number of
shares outstanding-basic(4) 277,719 279,253 277,584
Net effect of dilutive stock
options, warrants and restricted
stock awards based on the
treasury stock method 8,606 8,645 5,777
Assumed conversion of our zero
coupon convertible/exchangeable
senior debentures/notes:
$2.75 billion due 2011 (1) - - -
$82.8 million due 2021 (2) - - -
$700 million due 2023 (3) 5,129 - -
----------- ----------- -----------
Weighted-average number of
shares outstanding - diluted 291,454 287,898 283,361
----------- ----------- -----------

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

COMPUTATION OF EARNINGS PER SHARE
(Unaudited)

A reconciliation of the numerators and denominators of the basic and
diluted earnings per share computations is as follows:
Six Months Ended
--------------------------
June 30,
--------------------------
(In thousands, except per share amounts) 2008 2007
---------- ----------
Net income (numerator):
Income from continuing operations, net of
tax - basic $ 424,867 $ 477,752
Add interest expense on assumed conversion
of our zero coupon convertible/exchangeable
senior debentures/notes, net of tax:
$2.75 billion due 2011 (1) - -
$82.8 million due 2021 (2) - -
$700 million due 2023 (3) - -
---------- ----------
Adjusted income from continuing operations,
net of tax - diluted 424,867 477,752
---------- ----------
Income from discontinued operations, net
of tax - 12,759
Total adjusted net income $ 424,867 $ 490,511

Earnings per share:
Basic from continuing operations $ 1.53 $ 1.72
Basic from discontinued operations $ - $ .04
---------- ----------
Total Basic $ 1.53 $ 1.76
---------- ----------
Diluted from continuing operations $ 1.48 $ 1.67
Diluted from discontinued operations $ - $ .04
---------- ----------
Total Diluted $ 1.48 $ 1.71
---------- ----------
Shares (denominator):
Weighted-average number of shares
outstanding-basic(4) 277,651 278,098
Net effect of dilutive stock options,
warrants and restricted stock awards
based on the treasury stock method 7,191 8,258
Assumed conversion of our zero coupon
convertible/exchangeable senior debentures/notes:
$2.75 billion due 2011 (1) - -
$82.8 million due 2021 (2) - -
$700 million due 2023 (3) 2,565 -
---------- ----------
Weighted-average number of shares outstanding -
diluted 287,407 286,356
---------- ----------

(1) Diluted earnings per share for the three and six months ended June 30,
2008 and 2007 and the three months ended March 31, 2008 do not include
any incremental shares issuable upon exchange of the $2.75 billion
0.94% senior exchangeable notes due 2011. The number of shares that
we would be required to issue upon exchange consists of only the
incremental shares that would be issued above the principal amount of
the notes, as we are required to pay cash up to the principal amount
of the notes exchanged. We would only issue an incremental number of
shares upon exchange of these notes. Such shares are only included in
the calculation of the weighted-average number of shares outstanding
in our diluted earnings per share calculation, when our stock price
exceeds $45.83 as of the last trading day of a quarter and the average
price of our shares for the ten consecutive trading days beginning on
the third business day after the last trading day of the quarter
exceeds $45.83, which did not occur for the three and six months ended
June 30, 2008 and 2007 and the three months ended March 31, 2008.

(2) Diluted earnings per share for the three and six months ended June 30,
2008 and 2007 and the three months ended March 31, 2008 excludes
approximately 1.2 million potentially dilutive shares initially
issuable upon the conversion of the $82.8 million aggregate principal
amount at maturity zero coupon convertible senior debentures due 2021.
The maximum number of shares required to be issued upon conversion
would equate to the excess of the conversion value of the debentures
over their principal amount. Such shares would only be included in
the calculation of the weighted-average number of shares outstanding
in our diluted earnings per share calculation if the price of our
shares exceeded approximately $52. In June 2008, Nabors Delaware
called for redemption the full $82.8 million aggregate principal
amount at maturity of its zero coupon senior convertible debentures
due 2021 and in July 2008, paid cash of $60.6 million; an amount equal
to the issue price of $50.4 million plus accrued original issue
discount of $10.2 million.

(3) Diluted earnings per share for the three and six months ended June 30,
2008 reflect the conversion of the $700 million zero coupon senior
exchangeable notes due 2023 resulting in the inclusion of the
incremental number of shares that were required to be issued upon the
exchange of these notes. The number of shares issued upon exchange
equated to the excess of the exchange value of the notes over their
principal amount, as Nabors Delaware was required to pay cash up to
the principal amount of the notes exchanged. Because the conversion
was only partially completed in June 2008, only .5 million of our
common shares actually issued in June 2008 were included in the
calculation of the weighted-average basic shares outstanding for the
three and six months ended June 30, 2008, resulting in an incremental
.121 million weighted-average basic shares outstanding. For the
remaining shares that were issued in July 2008, we included the
dilutive effect that, when added to the shares included in basic
shares outstanding, gives effect to the entire 5.25 million shares to
be issued related to the conversion of the $700 million zero coupon
senior exchangeable notes due 2023 in diluted shares outstanding.
Diluted earnings per share for the three and six months ended June 30,
2007 and the three months ended March 31, 2008 does not include any
incremental shares issuable upon exchange of the $700 million zero
coupon senior exchangeable notes as the price of our shares did not
exceed $35.05 on June 30, 2007 or March 31, 2008.

(4) Includes the following weighted-average number of common shares of
Nabors and weighted-average number of exchangeable shares of Nabors
(Canada) Exchangeco Inc., respectively: 277.6 million and .1 million
shares for the three months ended June 30, 2008; 279.2 million and
.1 million shares for the three months ended June 30, 2007;
277.5 million and .1 million for the three months ended March 31,
2008; 277.6 million and .1 million shares for the six months ended
June 30, 2008; and 277.9 million and .2 million shares for the six
months ended June 30, 2007. The exchangeable shares of Nabors
Exchangeco are exchangeable for Nabors' common shares on a one-for-one
basis, and have essentially identical rights as Nabors Industries Ltd.
common shares, including but not limited to, voting rights and the
right to receive dividends, if any.

------
Nabors 2Q 2008 EPS $0.67 Despite ($0.06) from Tax Adjustment, Share Count and
E&P Hedging Loss
HAMILTON, Bermuda, July 22 /PRNewswire-FirstCall/ -- Nabors Industries
Ltd. (NYSE: NBR) today announced its results for the second quarter and six
months of 2008. Adjusted income derived from operating activities was
$265.9 million for the current quarter compared to $280.5 million in the
second quarter of last year and $287.2 million in the first quarter of this
year. Net Income was $194.4 million ($0.67 per diluted share) for the current
quarter compared to $228.3 million ($0.79 per diluted share) in the second
quarter of last year and $230.5 million ($0.81 per diluted share) in the first
quarter of this year. Operating revenues and Earnings from unconsolidated
affiliates was $1.28 billion in the current quarter compared to $1.14 billion
in the second quarter of last year and $1.30 billion in the first quarter of
this year. For the six months ended June 30, 2008, adjusted income derived
from operating activities was $553.1 million compared to $620.6 million in the
first six months of 2007. Net income for the first six months of 2008 was
$424.9 million ($1.48 per diluted share) compared to $490.5 million ($1.71 per
diluted share) in the first six months of 2007. Operating revenues and
Earnings from unconsolidated affiliates for the first six months of 2008 rose
to $2.57 billion, up from $2.39 billion for the first six months of 2007.
"Our second quarter saw a dramatic and rapid turnaround in activity and in
the outlook for our North American businesses," said Gene Isenberg, Nabors
Chairman and CEO, "although non-operational items obscured bottom line
results. It is now clear that our operating income bottomed out in the second
quarter and the outlook for the second half and beyond is improving more
rapidly than we had anticipated.
"The quarter's net income and per share results were reduced by
approximately six cents per diluted share as a result of an adjustment to our
full year estimated taxes ($0.03), an accounting rules dictated increase in
diluted shares ($0.01), and the non-cash mark-to-market loss on certain
forward hedges in our First Reserve E&P joint venture entities ($0.02).
"Operationally, we achieved improving sequential results in every
significant business unit except for Canada and Alaska, which were down
seasonally although less than anticipated. The most significant evidence of
the turn around in our businesses is demonstrated by more than 20 term
contract commitments for additional new-built rigs that we received since last
quarter, the preponderance of which were secured by our US Lower 48 Land
Drilling unit. There are also a large number of additional term commitments
pending. We have recently placed an order with National Oilwell Varco for a
number of their Rapid Rigs(TM), which we feel are ideally suited for the
shallower shale plays that are increasingly active.
"In our US Lower 48 Land Drilling unit we have seen the working rig count
increase by 31 rigs over our first quarter average. Our US Lower 48 rig count
now stands at 257 rigs after averaging 242.3 rigs in the second quarter and to
225.7 in the first quarter. Our second quarter average margins were
essentially flat sequentially at $8,900 per rig day. This is a combination of
lower but higher than expected margins on renewing term contracts, offset by
idle rigs returning to work at improving rates and the attainment of full
margins on our 75 new rigs deployed to date. Our new PACE rigs continue to
set records in virtually every area in which they operate and the magnitude of
this quarter's new build commitments and the higher rates they are commanding
substantiates their value.
"Our US Offshore operations experienced a very good quarter as income
rebounded sharply from the lackluster first quarter. This primarily was due
to more consistent utilization of our jackups and $1.6 million (pre-tax) in
business interruption insurance associated with the Barge Rig 100 fire last
summer. Rates and activity are improving and it appears that the current
strong environment will continue for the foreseeable future. We do not expect
to see the substantial slowdown in third quarter activity that has
characterized the last two hurricane seasons. Rather we are seeing
opportunities for additional rigs and interest is increasing for longer-term
contract commitments.
"Although our US Well Servicing unit is not doing well, we still posted a
slightly improved quarter on higher hours. This market is improving and we
have recently instituted price increases in most regions in which we operate.
We are regaining market share in certain markets where price competition has
been acute and we expect further gains over the next two quarters. Customer
recognition of the inherent advantages of the new technology that is
incorporated in our Millennium rigs is increasing broadly. We will take
delivery of 10 of the 400 horsepower version of these Millennium rigs during
the second half of this year, with potential for another 90 thereafter.
"Our International unit posted a significant sequential improvement and
expects to achieve much larger sequential increases over the next two
quarters. The quarter was aided by $3.9 million (pre-tax) in business
interruption insurance for one of our small jackups that incurred flooding
damage during mobilization last fall. The largest increase will come from the
full impact of our new jackup rig 660, which incurred delays and start up
issues which hurt its second quarter contribution. This is followed by the
start-up of jackup rig 657 in early July and the full contribution of four
other land rigs that commenced in the first half, all of which also had some
delays that impacted the second quarter. All of these rigs are now operating
satisfactorily and contributing as expected. Six other land rigs are set to
commence operations during the third quarter, with potentially as many as 13
other rigs in the fourth quarter. The international outlook remains strong in
virtually every region and new rig possibilities continue to materialize. We
still anticipate an increase in operating income of approximately 40% over
2007's results.
"Alaska was down slightly as the winter exploration season wound down
early in the quarter. This market is seeing healthy increases in activity and
rates both in and away from the established producing fields on the North
Slope and in the Cook Inlet. We expect to see a large increase in income
contribution over the next two years, albeit from a small base as several
incremental development projects commence and exploration activity increases.
Results will be bolstered by two new built Heli-portable rigs which commenced
operations near the start of 2008, and by two legacy rigs which are receiving
standby revenue while being upgraded and refurbished for long term contracts.
Our new Coiled Tubing/Stem drilling rig, which is the only such rig capable of
drilling to 15,000 feet, will commence operations in early 2009 and we have
two proposals pending for additional multi-year contracts.
"As anticipated, Canada experienced the worst quarter in its history
during this year's spring thaw, although it was modestly better than we had
expected. The outlook has improved substantially over the last two months,
although it is still too early to be definitive regarding the timing and
extent of the recovery. To date the third quarter has been plagued by wetter
than normal weather, with approximately 30 rigs currently waiting to commence
contracts. The extent of future activity in Alberta is still dependant upon
modifications to the provincial royalty increases there which are set to
commence in 2009 and which have driven several operators to deploy capital
elsewhere. Meanwhile, in British Columbia we are seeing rapidly accelerating
activity, particularly in the new shale plays of Horn River and Montney. We
have a large number of both new and legacy rig commitments for these and other
emerging shale plays in other areas of Canada and we are currently negotiating
commitments for several more. We will also soon deploy one of our new
Heli-portable rigs for what looks to be year-around work in Horn River, where
no roads currently exist and where access has heretofore been limited to
winter only.
"Our Other Operating Segments posted a very good quarter and continues to
enjoy a very strong outlook. The primary contributor to this unit's
performance was our Canrig entity where sales are increasing significantly,
particularly to third parties. Our instrumentation and data management entity
and our directional drilling unit also posted very good results despite the
seasonally weak Canadian market. Our 50% owned Alaskan construction and
logistics joint ventures contributed less significantly due to the customary
spring quarter drop off in activity and income.
"I remain very pleased with the performance of our oil and gas entities,
although operating income results will not be evident until the latter part of
the year. Even though we have experienced accounting losses associated with
the commodity price hedges we have in place, they are providing us with
exactly what we envisioned, that being higher than expected returns while
substantially eliminating downside risk. We continue to find very attractive
investment opportunities and we have acreage holdings in most of the emerging
North American shale plays. Not only is this business poised to contribute
significantly in the near future, it is providing us with valuable insight to
better target our rig marketing activities.
"Last week we issued, through a wholly owned subsidiary, an additional
$400 million of our 6.15% Senior Notes due 2018. This was an additional
placement of the $575 million in notes we issued in February of this year.
This brings to $975 million the aggregate total of these notes which are fully
and unconditionally guaranteed by Nabors Industries Ltd. These notes will
provide financing for what we think will be a large and profitable investment
program for new built rigs and other attractive capital expenditures.
"Our expectations for 2009 are increasing although we will be subject to a
recent non-cash, non-operational, accounting rule change regarding convertible
debt which will effect our net income and earnings per share starting with the
beginning of 2009. This rule will require us to record non-cash interest
expense on our 0.94% coupon convertible debt due 2011 in an amount equal to
the extent that the actual coupon represents a discount to our estimated
borrowing rate for conventional debt at the time the convertible notes were
issued. We will also be required to restate three years of results for any
convertible issues that were outstanding during that period. The offsetting
entry will be to treat the lower coupon as a debt discount on our balance
sheet and to accrete the value of the debt as the non-cash interest expense is
recorded. This change will have no effect on the real economic results of our
business but will obviously affect our reported GAAP earnings.
"I remain convinced of the strength of the North American gas markets,
short-term volatility notwithstanding. Gas remains the most attractive fuel
and there is minimal likelihood that LNG will be a negative price factor in
these markets for the foreseeable future. This puts Nabors in an advantageous
position to prosper going forward across all of our North American business
lines and, when coupled with the ongoing strength and growing market share we
enjoy internationally, promises a very bright future."
The Nabors companies own and operate approximately 548 land drilling and
approximately 749 land workover and well-servicing rigs in North America.
Nabors' actively marketed offshore fleet consists of; 36 platform rigs, 13
jackup 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 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 mark.andrews@nabors.com.

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three Months Ended
-----------------------------------
June 30, March 31,
----------------------- ----------
(In thousands, except per share
amounts) 2008 2007 2008
---------- ---------- ----------
Revenues and other income:
Operating revenues $1,282,400 $1,134,684 $1,299,858
Earnings (loss) from
unconsolidated affiliates (4,033) 3,436 (4,451)
Investment (loss) income 25,057 (9,272) 26,182
---------- ---------- ----------
Total revenues and other
income 1,303,424 1,128,848 1,321,589
---------- ---------- ----------
Costs and other deductions:
Direct costs 740,178 637,104 747,770
General and administrative
expenses 116,914 99,952 111,321
Depreciation and amortization 148,023 111,372 135,478
Depletion 7,343 9,160 13,685
Interest expense 21,676 13,733 18,109
Losses (gains) on sales of
long-lived assets, impairment
charges and other expense
(income), net 3,158 (39,634) 8,097
---------- ---------- ----------
Total costs and other
deductions 1,037,292 831,687 1,034,460
---------- ---------- ----------
Income from continuing operations
before income taxes 266,132 297,161 287,129
---------- ---------- ----------
Income tax expense (benefit):
Current 39,759 53,973 99,293
Deferred 32,012 22,326 (42,670)
---------- ---------- ----------
Income tax expense 71,771 76,299 56,623
---------- ---------- ----------
Income from continuing operations,
net of tax 194,361 220,862 230,506
Income from discontinued
operations, net of tax - 7,487 -
---------- ---------- ----------
Net income $ 194,361 $ 228,349 $ 230,506
---------- ---------- ----------
Earnings per share (1):
Basic from continuing operations $ .70 $ .79 $ .83
Basic from discontinued operations $ - $ .03 $ -
---------- ---------- ----------
Total Basic $ .70 $ .82 $ .83
---------- ---------- ----------
Diluted from continuing operations $ .67 $ .77 $ .81
Diluted from discontinued
operations $ - $ .02 $ -
---------- ---------- ----------
Total Diluted $ .67 $ .79 $ .81
---------- ---------- ----------

Weighted-average number of common
shares outstanding (1):
Basic 277,719 279,253 277,584
---------- ---------- ----------
Diluted 291,454 287,898 283,361
---------- ---------- ----------
Adjusted income derived from
operating activities (2) $ 265,909 $ 280,532 $ 287,153
========== ========== ==========

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)
----------------------------
Six Months Ended
----------------------------
June 30,
----------------------------
(In thousands, except per share
amounts) 2008 2007
---------- ----------
Revenues and other income:
Operating revenues $2,582,258 $2,370,697
Earnings (loss) from
unconsolidated affiliates (8,484) 15,877
Investment (loss) income 51,239 19,437
---------- ----------
Total revenues and other income 2,625,013 2,406,011
---------- ----------
Costs and other deductions:
Direct costs 1,487,948 1,321,401
General and administrative
expenses 228,235 213,849
Depreciation and amortization 283,501 214,980
Depletion 21,028 15,785
Interest expense 39,785 26,785
Losses (gains) on sales of long-
lived assets, impairment charges
and other expense (income), net 11,255 (25,749)
---------- ----------
Total costs and other deductions 2,071,752 1,767,051
---------- ----------
Income from continuing operations
before income taxes 553,261 638,960
---------- ----------
Income tax expense (benefit):
Current 139,052 159,827
Deferred (10,658) 1,381
---------- ----------
Income tax expense 128,394 161,208
---------- ----------
Income from continuing operations,
net of tax 424,867 477,752
Income from discontinued operations,
net of tax - 12,759
---------- ----------
Net income $ 424,867 $ 490,511
---------- ----------
Earnings per share (1):
Basic from continuing operations $ 1.53 $ 1.72
Basic from discontinued operations $ - $ .04
---------- ----------
Total Basic $ 1.53 $ 1.76
---------- ----------
Diluted from continuing operations $ 1.48 $ 1.67
Diluted from discontinued
operations $ - $ .04
---------- ----------
Total Diluted $ 1.48 $ 1.71
---------- ----------

Weighted-average number of common
shares outstanding (1):
Basic 277,651 278,098
---------- ----------
Diluted 287,407 286,356
---------- ----------

Adjusted income derived from
operating activities (2) $553,062 $620,559
========== ==========

(1) See "Computation of Earnings Per Share" included herein as a separate
schedule.

(2) Adjusted income derived from operating activities is computed by:
subtracting direct costs, general and administrative expenses,
depreciation and amortization, and depletion expense from Operating
revenues and then adding Earnings from unconsolidated affiliates.
Such amounts should not be used as a substitute to those amounts
reported under accounting principles generally accepted in the United
States of America (GAAP). However, management evaluates the
performance of our business units and the consolidated company based
on several criteria, including adjusted income derived from operating
activities, because it believes that this financial measure is an
accurate reflection of the ongoing profitability of our company. A
reconciliation of this non-GAAP measure to income from continuing
operations before income taxes, which is a GAAP measure, is provided
within the table set forth immediately following the heading "Segment
Reporting".

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

June 30, March 31, December 31,
(In thousands, except ratios) 2008 2008 2007
----------- ----------- -----------
ASSETS
Current assets:
Cash and short-term investments $ 1,236,547 $ 1,450,244 $ 767,051
Accounts receivable, net 1,083,748 1,112,190 1,039,238
Other current assets 410,051 392,291 398,823
----------- ----------- -----------
Total current assets 2,730,346 2,954,725 2,205,112
Long-term investments and other
receivables 239,866 310,938 359,534
Property, plant and equipment, net 7,020,941 6,758,516 6,632,612
Goodwill 363,158 360,709 368,432
Other long-term assets 620,430 520,335 537,692
----------- ----------- -----------
Total assets $10,904,644 $10,905,223 $10,103,382
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Current portion of long-term debt $588,847 $700,000 $700,000
Other current liabilities 776,833 786,130 794,132
----------- ----------- -----------
Total current liabilities 1,365,680 1,486,130 1,494,132
Long-term debt 3,822,285 3,881,575 3,306,433
Other long-term liabilities 783,020 749,678 788,696
----------- ----------- -----------
Total liabilities 5,970,985 6,117,383 5,589,261
Shareholders' equity 4,933,659 4,787,840 4,514,121
----------- ----------- -----------
Total liabilities and
shareholders' equity $10,904,644 $10,905,223 $10,103,382
=========== =========== ===========

Cash, short-term and long-term
investments (1) $ 1,510,842 $ 1,821,043 $ 1,179,639

Funded debt to capital ratio: (2)
- Gross 0.45 : 1 0.47 : 1 0.44 : 1
- Net of cash and investments 0.35 : 1 0.34 : 1 0.36 : 1
Interest coverage ratio: (3) 25.7 : 1 29.6 : 1 32.5 : 1

(1) The June 30, 2008, March 31, 2008 and December 31, 2007 amounts
include $34.4 million, $59.9 million and $53.1 million, respectively,
in cash proceeds receivable from brokers from the sale of certain
investments that are included in other current assets. These
proceeds were received during the following respective month.

(2) The gross funded debt to capital ratio is calculated by dividing
funded debt by funded debt plus deferred tax liabilities net of
deferred tax assets plus capital. Funded debt is defined as the sum
of (1) short-term borrowings, (2) current portion of long-term debt
and (3) long-term debt. Capital is defined as shareholders' equity.
The net funded debt to capital ratio is calculated by dividing net
funded debt by net funded debt plus deferred tax liabilities net of
deferred tax assets plus capital. Net funded debt is defined as the
sum of (1) short-term borrowings, (2) current portion of long-term
debt and (3) long-term debt reduced by the sum of cash and cash
equivalents and short-term and long-term investments. Capital is
defined as shareholders' equity. Both of these ratios are a method
for calculating the amount of leverage a company has in relation to
its capital. The net funded debt to capital ratio is not a measure
of operating performance or liquidity defined by accounting
principles generally accepted in the United States of America and may
not be comparable to similarly titled measures presented by other
companies.

(3) The interest coverage ratio is a trailing twelve-month computation of
the sum of income from continuing operations before income taxes,
interest expense, depreciation and amortization, and depletion
expense less investment income and then dividing by interest expense.
This ratio is a method for calculating the amount of operating cash
flows available to cover interest expense. The interest coverage
ratio from continuing operations is not a measure of operating
performance or liquidity defined by accounting principles generally
accepted in the United States of America and may not be comparable to
similarly titled measures presented by other companies.

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

SEGMENT REPORTING
(Unaudited)

The following tables set forth certain information with respect to our
reportable segments and rig activity:

Three Months Ended
----------------------------------
June 30, March 31,
--------------------- -----------
(In thousands, except rig activity) 2008 2007 2008

Reportable segments:
Operating revenues and Earnings from
unconsolidated affiliates from
continuing operations: (1)
Contract Drilling: (2)
U.S. Lower 48 Land Drilling $ 438,848 $ 426,787 $ 407,061
U.S. Land Well-servicing 182,222 182,410 171,141
U.S. Offshore 65,723 60,316 51,455
Alaska 45,114 36,777 54,369
Canada 67,782 75,088 178,852
International 342,892 261,262 303,572
---------- ---------- ----------
Subtotal Contract Drilling (3) 1,142,581 1,042,640 1,166,450
Oil and Gas (4) (5) 11,352 18,110 14,040
Other Operating Segments (6) (7) 172,865 140,024 165,782
Other reconciling items (8) (48,431) (62,654) (50,865)
---------- ---------- ----------
Total $1,278,367 $1,138,120 $1,295,407
========== ========== ==========
Adjusted income (loss) derived from
operating activities from continuing
operations: (1)
Contract Drilling: (2)
U.S. Lower 48 Land Drilling $ 134,322 $ 154,667 $ 126,871
U.S. Land Well-servicing 31,468 40,105 30,386
U.S. Offshore 17,983 19,206 6,458
Alaska 13,466 8,225 17,783
Canada (14,326) (7,992) 41,973
International 101,752 85,409 90,650
---------- ---------- ----------
Subtotal Contract Drilling 284,665 299,620 314,121

Oil and Gas (1,645) 3,374 (4,852)
Other Operating Segments 19,006 6,739 12,434
Other reconciling items (9) (36,117) (29,201) (34,550)
---------- ---------- ----------
Total 265,909 280,532 287,153
Interest expense (21,676) (13,733) (18,109)
Investment (loss) income 25,057 (9,272) 26,182
(Losses) gains on sales of long-lived
assets, impairment charges and other
expense (income), net (3,158) 39,634 (8,097)
---------- ---------- ----------
Income from continuing operations
before income taxes $ 266,132 $ 297,161 $ 287,129
========== ========== ==========

Rig activity:
Rig years: (10)
U.S. Lower 48 Land Drilling 242.3 228.5 225.7
U.S. Offshore 17.1 17.6 16.1
Alaska 10.4 8.8 10.6
Canada 16.9 18.5 49.4
International (11) 121.5 117.1 117.8
---------- ---------- ----------
Total rig years 408.2 390.5 419.6
========== ========== ==========
Rig hours: (12)
U.S. Land Well-servicing 272,101 291,430 259,477
Canada Well-servicing 40,257 41,613 79,137
---------- ---------- ----------
Total rig hours 312,358 333,043 338,614
========== ========== ==========

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

SEGMENT REPORTING
(Unaudited)

The following tables set forth certain information with respect to our
reportable segments and rig activity:

Six Months Ended
--------------------------
June 30,
--------------------------
(In thousands, except rig activity) 2008 2007
---------- ----------
Reportable segments:
Operating revenues and Earnings from
unconsolidated affiliates from
continuing operations: (1)
Contract Drilling: (2)
U.S. Lower 48 Land Drilling $ 845,909 $ 879,383
U.S. Land Well-servicing 353,363 364,628
U.S. Offshore 117,178 116,091
Alaska 99,483 84,613
Canada 246,634 268,368
International 646,464 485,744
---------- ----------
Subtotal Contract Drilling (3) 2,309,031 2,198,827
Oil and Gas (4) (5) 25,392 31,239
Other Operating Segments (6) (7) 338,647 270,374
Other reconciling items (8) (99,296) (113,866)
---------- ----------
Total $2,573,774 $2,386,574
========== ==========
Adjusted income (loss) derived from
operating activities from continuing
operations: (1)
Contract Drilling: (2)
U.S. Lower 48 Land Drilling $261,193 $ 327,593
U.S. Land Well-servicing 61,854 83,461
U.S. Offshore 24,441 34,255
Alaska 31,249 24,792
Canada 27,647 45,136
International 192,402 151,427
---------- ----------
Subtotal Contract Drilling 598,786 666,664

Oil and Gas (6,497) 4,502
Other Operating Segments 31,440 18,333
Other reconciling items (9) (70,667) (68,940)
---------- ----------
Total 553,062 620,559
Interest expense (39,785) (26,785)
Investment (loss) income 51,239 19,437
(Losses) gains on sales of long-lived
assets, impairment charges and other
expense (income), net (11,255) 25,749
---------- ----------
Income from continuing operations before
income taxes $ 553,261 $ 638,960
========== ==========

Rig activity:
Rig years: (10)
U.S. Lower 48 Land Drilling 234.0 235.7
U.S. Offshore 16.6 17.4
Alaska 10.5 9.1
Canada 29.8 38.2
International (11) 119.6 114.4
---------- ----------
Total rig years 410.5 414.8
========== ==========
Rig hours: (12)
U.S. Land Well-servicing 531,578 590,518
Canada Well-servicing 119,394 139,201
---------- ----------
Total rig hours 650,972 729,719
========== ==========

(1) All segment information excludes the Sea Mar business, which has been
classified as a discontinued operation.

(2) These segments include our drilling, workover and well-servicing
operations, on land and offshore.

(3) Includes earnings (losses), net, from unconsolidated affiliates,
accounted for by the equity method, of $2.8 million, $.7 million and
$6.8 million for the three months ended June 30, 2008 and 2007 and
March 31, 2008, respectively, and $9.6 and $2.5 million for six
months ended June 30, 2008 and 2007, respectively.

(4) Represents our oil and gas exploration, development and production
operations.

(5) Includes earnings (losses), net, from unconsolidated affiliates,
accounted for by the equity method, of ($6.7) million, ($.8) million
and ($17.9) million for the three months ended June 30, 2008 and
2007 and March 31, 2008, respectively, and ($24.6) million and ($.8)
million for the six months ended June 30, 2008 and 2007,
respectively.

(6) Includes our drilling technology and top drive manufacturing,
directional drilling, rig instrumentation and software, and
construction and logistics operations.

(7) Includes earnings (losses), net, from unconsolidated affiliates,
accounted for by the equity method, of ($.1) million, $3.5 million
and $6.7 million for the three months ended June 30, 2008 and 2007
and March 31, 2008, respectively, and $6.6 million and $14.2 million
for the six months ended June 30, 2008 and 2007, respectively.

(8) Represents the elimination of inter-segment transactions.

(9) Represents the elimination of inter-segment transactions and
unallocated corporate expenses.

(10) Excludes well-servicing rigs, which are measured in rig hours.
Includes our equivalent percentage ownership of rigs owned by
unconsolidated affiliates. Rig years represent a measure of the
number of equivalent rigs operating during a given period. For
example, one rig operating 182.5 days during a 365-day period
represents 0.5 rig years.

(11) International rig years include our equivalent percentage ownership
of rigs owned by unconsolidated affiliates which totaled 4.0 years
during the three months ended June 30, 2008 and 2007 and March 31,
2008 and the six months ended June 30, 2008 and 2007, respectively

(12) Rig hours represents the number of hours that our well-servicing rig
fleet operated during the period.

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

COMPUTATION OF EARNINGS PER SHARE
(Unaudited)

A reconciliation of the numerators and denominators of the basic and
diluted earnings per share computations is as follows:

Three Months Ended
-----------------------------------
June 30, March 31,
----------------------- -----------
(In thousands, except per share amounts) 2008 2007 2008
----------- ----------- -----------
Net income (numerator):
Income from continuing
operations, net of tax -
basic $ 194,361 $ 220,862 $ 230,506
Add interest expense on assumed
conversion of our zero coupon
convertible/exchangeable senior
debentures/notes, net of tax:
$2.75 billion due 2011 (1) - - -
$82.8 million due 2021 (2) - - -
$700 million due 2023 (3) - - -
----------- ----------- -----------
Adjusted income from continuing
operations, net of tax -
diluted 194,361 220,862 230,506
Income from discontinued
operations, net of tax - 7,487 -
----------- ----------- -----------
Total adjusted net income $ 194,361 $ 228,349 $ 230,506
----------- ----------- -----------
Earnings per share:
Basic from continuing operations $ .70 $ .79 $ .83
Basic from discontinued
operations $ - $ .03 $ -
----------- ----------- -----------
Total Basic $ .70 $ .82 $ .83
----------- ----------- -----------
Diluted from continuing
operations $ .67 $ .77 $ .81
Diluted from discontinued
operations $ - $ .02 $ -
----------- ----------- -----------
Total Diluted $ .67 $ .79 $ .81
----------- ----------- -----------
Shares (denominator):
Weighted-average number of
shares outstanding-basic(4) 277,719 279,253 277,584
Net effect of dilutive stock
options, warrants and restricted
stock awards based on the
treasury stock method 8,606 8,645 5,777
Assumed conversion of our zero
coupon convertible/exchangeable
senior debentures/notes:
$2.75 billion due 2011 (1) - - -
$82.8 million due 2021 (2) - - -
$700 million due 2023 (3) 5,129 - -
----------- ----------- -----------
Weighted-average number of
shares outstanding - diluted 291,454 287,898 283,361
----------- ----------- -----------

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

COMPUTATION OF EARNINGS PER SHARE
(Unaudited)

A reconciliation of the numerators and denominators of the basic and
diluted earnings per share computations is as follows:
Six Months Ended
--------------------------
June 30,
--------------------------
(In thousands, except per share amounts) 2008 2007
---------- ----------
Net income (numerator):
Income from continuing operations, net of
tax - basic $ 424,867 $ 477,752
Add interest expense on assumed conversion
of our zero coupon convertible/exchangeable
senior debentures/notes, net of tax:
$2.75 billion due 2011 (1) - -
$82.8 million due 2021 (2) - -
$700 million due 2023 (3) - -
---------- ----------
Adjusted income from continuing operations,
net of tax - diluted 424,867 477,752
---------- ----------
Income from discontinued operations, net
of tax - 12,759
Total adjusted net income $ 424,867 $ 490,511

Earnings per share:
Basic from continuing operations $ 1.53 $ 1.72
Basic from discontinued operations $ - $ .04
---------- ----------
Total Basic $ 1.53 $ 1.76
---------- ----------
Diluted from continuing operations $ 1.48 $ 1.67
Diluted from discontinued operations $ - $ .04
---------- ----------
Total Diluted $ 1.48 $ 1.71
---------- ----------
Shares (denominator):
Weighted-average number of shares
outstanding-basic(4) 277,651 278,098
Net effect of dilutive stock options,
warrants and restricted stock awards
based on the treasury stock method 7,191 8,258
Assumed conversion of our zero coupon
convertible/exchangeable senior debentures/notes:
$2.75 billion due 2011 (1) - -
$82.8 million due 2021 (2) - -
$700 million due 2023 (3) 2,565 -
---------- ----------
Weighted-average number of shares outstanding -
diluted 287,407 286,356
---------- ----------

(1) Diluted earnings per share for the three and six months ended June 30,
2008 and 2007 and the three months ended March 31, 2008 do not include
any incremental shares issuable upon exchange of the $2.75 billion
0.94% senior exchangeable notes due 2011. The number of shares that
we would be required to issue upon exchange consists of only the
incremental shares that would be issued above the principal amount of
the notes, as we are required to pay cash up to the principal amount
of the notes exchanged. We would only issue an incremental number of
shares upon exchange of these notes. Such shares are only included in
the calculation of the weighted-average number of shares outstanding
in our diluted earnings per share calculation, when our stock price
exceeds $45.83 as of the last trading day of a quarter and the average
price of our shares for the ten consecutive trading days beginning on
the third business day after the last trading day of the quarter
exceeds $45.83, which did not occur for the three and six months ended
June 30, 2008 and 2007 and the three months ended March 31, 2008.

(2) Diluted earnings per share for the three and six months ended June 30,
2008 and 2007 and the three months ended March 31, 2008 excludes
approximately 1.2 million potentially dilutive shares initially
issuable upon the conversion of the $82.8 million aggregate principal
amount at maturity zero coupon convertible senior debentures due 2021.
The maximum number of shares required to be issued upon conversion
would equate to the excess of the conversion value of the debentures
over their principal amount. Such shares would only be included in
the calculation of the weighted-average number of shares outstanding
in our diluted earnings per share calculation if the price of our
shares exceeded approximately $52. In June 2008, Nabors Delaware
called for redemption the full $82.8 million aggregate principal
amount at maturity of its zero coupon senior convertible debentures
due 2021 and in July 2008, paid cash of $60.6 million; an amount equal
to the issue price of $50.4 million plus accrued original issue
discount of $10.2 million.

(3) Diluted earnings per share for the three and six months ended June 30,
2008 reflect the conversion of the $700 million zero coupon senior
exchangeable notes due 2023 resulting in the inclusion of the
incremental number of shares that were required to be issued upon the
exchange of these notes. The number of shares issued upon exchange
equated to the excess of the exchange value of the notes over their
principal amount, as Nabors Delaware was required to pay cash up to
the principal amount of the notes exchanged. Because the conversion
was only partially completed in June 2008, only .5 million of our
common shares actually issued in June 2008 were included in the
calculation of the weighted-average basic shares outstanding for the
three and six months ended June 30, 2008, resulting in an incremental
.121 million weighted-average basic shares outstanding. For the
remaining shares that were issued in July 2008, we included the
dilutive effect that, when added to the shares included in basic
shares outstanding, gives effect to the entire 5.25 million shares to
be issued related to the conversion of the $700 million zero coupon
senior exchangeable notes due 2023 in diluted shares outstanding.
Diluted earnings per share for the three and six months ended June 30,
2007 and the three months ended March 31, 2008 does not include any
incremental shares issuable upon exchange of the $700 million zero
coupon senior exchangeable notes as the price of our shares did not
exceed $35.05 on June 30, 2007 or March 31, 2008.

(4) Includes the following weighted-average number of common shares of
Nabors and weighted-average number of exchangeable shares of Nabors
(Canada) Exchangeco Inc., respectively: 277.6 million and .1 million
shares for the three months ended June 30, 2008; 279.2 million and
.1 million shares for the three months ended June 30, 2007;
277.5 million and .1 million for the three months ended March 31,
2008; 277.6 million and .1 million shares for the six months ended
June 30, 2008; and 277.9 million and .2 million shares for the six
months ended June 30, 2007. The exchangeable shares of Nabors
Exchangeco are exchangeable for Nabors' common shares on a one-for-one
basis, and have essentially identical rights as Nabors Industries Ltd.
common shares, including but not limited to, voting rights and the
right to receive dividends, if any.

SOURCE Nabors Industries Ltd.

Dennis A. Smith, Director of Corporate Development of Nabors Corporate
Services, Inc., +1-281-775-8038, or Investor Materials, +1-441-292-1510,
mark.andrews@nabors.com