Dresser-Rand to Obtain Supersonic Ejector Technology from TransCanada Corporation

HOUSTON, Oct. 12 /PRNewswire-FirstCall/ -- Dresser-Rand Group Inc. ("Dresser-Rand" or the "Company") (NYSE: DRC) announced today that it has signed a memorandum of understanding with TransCanada Corporation to obtain technology for producing tandem supersonic ejectors.

Incorporating technology developed in conjunction with NOVA Research and Technology Corporation, the ejectors are used to reclaim gases ordinarily vented into the atmosphere. At TransCanada, reclaimed gases are injected into gas turbine fuel systems to reduce operating costs and hydrocarbon emissions.

When an agreement is finalized, Dresser-Rand will have the right to manufacture, use, and market ejectors that incorporate this technology (including improvements made by TransCanada). Dresser-Rand intends to offer the ejectors as a new equipment option and as a product upgrade for all centrifugal compressors that compress hydrocarbon gases.

"By improving the efficiency of the dry gas seals used on centrifugal compressors, and by recovering and recycling gases normally vented into the atmosphere, this new technology will benefit the environment," said H. Allan Kidd, director of Emerging Technologies at Dresser-Rand. "In addition, the new technology will make processes that require the transmission of gases more cost effective."

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.

TransCanada Corporation, founded in 1951, is a leader in the responsible development and reliable operation of North American energy infrastructure. With headquarters in Calgary, Alberta, the company has more than 3,500 employees throughout North America.

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/.

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