HOUSTON, Dec. 21 /PRNewswire-FirstCall/ -- Dresser-Rand Group Inc. ("Dresser-Rand" or the "Company") (NYSE:DRC) reported today that it received notice from Region 3 of National Labor Relations Board that the nearly 16 week strike by Local 313 will be deemed an economic strike, not an unfair labor practice strike as originally alleged by the Union. The unfair labor practice claims were insufficient to give rise to any Company obligation to provide back pay to striking workers, and, additionally, the Company can retain its permanently hired new employees.

Of the eleven claims the Union originally filed against the Company, eight will be dismissed if not previously withdrawn by the Union. It is unknown if the Union will choose to withdraw the charges or face a dismissal. The remaining three charges, which would be subject to further proceedings in the Region, were insufficient to convert the strike to an unfair labor practice strike. Significantly, none of the three remaining charges are related to the negotiating process with the Union. While the Company would have the right to proceed to a full trial to challenge the charges, the Company has agreed to terminate those claims by posting a NLRB notice in the facility.

"Region 3 of the NLRB conducted a very thorough and comprehensive investigation of the matters brought to its attention. Their decision validates the steps we took throughout this process," said Elizabeth C. Powers, Vice President and Chief Administrative Officer. "We put significant time and energy into ensuring that we handled the bargaining process appropriately. We have decided to end this process with the remedy that the NLRB has approved, by posting a notice in the plant, enabling us to move beyond this dispute and redirect our time and energy to where it belongs - serving the clients".

"This decision allows us to focus on our future," said Doug Rich, Director of Operations at Painted Post. "We are moving forward with a full complement of people to operate our facility and we are continuing to provide uninterrupted service to our clients."

"This is an excellent outcome for the Company, our employees and our clients," said Vincent R. Volpe, Jr., president and CEO of 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, Germany, Norway, and India, and maintains a network of 27 service and support centers covering more than 140 countries.

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements concerning The Company's plans, objectives, goals, strategies, future events, future revenue 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," 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: material weaknesses in its internal controls; economic or industry downturns; its inability to implement its business strategy to increase aftermarket parts and services revenue; 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; loss of senior management; the Company's brand name may be confused with others; environmental compliance costs and liabilities; failure to maintain safety performance acceptable to its clients; failure to negotiate new collective bargaining agreements; ability to operate as a stand-alone company; unexpected product claims and regulations; and infringement on its intellectual property or infringement on others' intellectual property. These and other risks are discussed in greater 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. For information about Dresser-Rand, go to its website at http://www.dresser-rand.com/.

DRC-FIN

Source: Dresser-Rand Group Inc.

CONTACT: Blaise Derrico, Director Investor Relations of Dresser-Rand
Group Inc., +1-713-973-5497

Web site:

http://www.dresser-rand.com/

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