ShawCor Ltd. announces an agreement to sell its OMSCO drill string manufacturing business

(TSX: SCL.SV.A, SCL.MV.B)

TORONTO, Aug. 29 /CNW/ - ShawCor Ltd. (TSX: SCL.SV.A, SCL.MV.B) today
announced the signing of a Purchase and Sale Agreement with Vallourec &
Mannesmann Tubes S.A. (V&M) whereby ShawCor's OMSCO drill string manufacturing
business, with operations in Houston, Texas will be sold to V&M.
The purchase price of US$120 million will be paid in cash on closing. The
proposed transaction is subject to the receipt of necessary regulatory
approvals. It is anticipated that the transaction will be completed on or
about September 30, 2005.
Bill Buckley, President and CEO of ShawCor, stated that, "ShawCor's
strategy is to focus on its core businesses. While OMSCO is a sound business,
it has no strong technological or other connections to ShawCor's remaining
businesses and thus was not considered a core business. It is anticipated that
the proceeds from the sale of OMSCO will be invested in the company's core
pipeline businesses, which have a highly favourable outlook in the longer
term, and for general corporate purposes. Given V&M's reputation for quality
and service, it is expected that OMSCO's customers and employees will benefit
from the transaction."
OMSCO manufactures a complete range of drill pipe, heavy-weight drill
pipe, drill collars, rotary subs, pup joints, kellys and other down hole
accessories to suit all conventional and directional drilling applications
including drill pipe manufactured with OMSCO's proprietary TorqMaster(TM) high
performance connections designed for use in deep water and highly deviated
drilling applications. For the six months ending June 30, 2005, OMSCO's
revenue and pre-tax operating income were $60.1 million and $9.5 million
respectively compared to $23.1 million and $(0.8) million respectively for the
corresponding six month period ending June 30, 2004.

ShawCor Ltd. is a Canadian energy services company specializing in
products and services for the pipeline, exploration and production, and
petrochemical and industrial segments of the oil and gas industry. The
company, with headquarters in Toronto, Canada, operates through seven
divisions with manufacturing and service facilities located around the world.

Simmons & Company International served as financial advisor to ShawCor
for this transaction.

This document contains forward looking statements, which are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those reflected in the statements.