Superior Drilling Products’ 2017 Preliminary Revenue Estimate More Than Double Prior-Year Revenue and Exceeds Guidance

February 14, 2018

Also Announces Extension of Supplier Contract and Fourth Quarter 2017
Teleconference

VERNAL, Utah–(BUSINESS WIRE)–Superior
Drilling Products, Inc. (NYSE American: SDPI) (“SDP” or the
“Company”), a designer and manufacturer of drilling tool technologies,
today announced preliminary unaudited revenue for 2017 of $15.6 million,
exceeding its expected range of $15 million to $15.5 million that was
raised for the second time in November 2017, and more than doubling 2016
revenue of $7.1 million. Preliminary revenue for the fourth quarter of
2017 ended December 31, 2017, is expected to be approximately $3.7
million, an increase of more than 50% over the prior-year period.
Preliminary results are subject to change pending review by the
Company’s independent accountants.

"2017 was a year of successful execution. We grew rapidly as our
flagship Drill-N-Ream® (DnR) wellbore conditioning tool
continued to demonstrate its value by gaining greater market
penetration. We expanded our future opportunities for the DnR by
establishing a market development agreement in the Middle East with a
leading oil field services company. And, we believe we have validated
the unique capabilities and durability of our StriderTM
oscillation system technology for increasing drilling efficiencies,”
commented Troy Meier, Chairman and CEO of Superior Drilling Products.

Operating expenses, excluding a $587,500 bonus in lieu of stock, are
expected to be approximately $14.7 to $14.8 million, implying an
operating margin for the year that well exceeds the November 2017
guidance of 2% to 3%. The Meiers used the bonus to pay principle and
interest on the Tronco note receivable reducing it to $7.4 million at
the end of 2017.

The Company also announced that it has mutually agreed with a leading
customer to extend its supply agreement as the parties negotiate new
terms with the intent to broaden the relationship and not have any
disruption in operations or production.

Fourth Quarter 2017 Teleconference and Webcast

The Company will release its complete fourth quarter and full year 2017
financial results before the opening of financial markets on Thursday,
March 8, 2018, and will host a conference call that same day.

Thursday, March 8, 2018
9:00 a.m. Mountain Time/11:00 a.m. Eastern
Time
Phone: (201) 689-8470
Webcast and accompanying slide
presentation: www.sdpi.com

A telephonic replay will be available from 12:00 p.m. MT (2:00 p.m. ET)
the day of the teleconference until Thursday, March 15, 2018. To listen
to the archived call, dial (412) 317-6671 and enter conference ID number
13676788, or access the webcast replay via the Company’s website at www.sdpi.com,
where a transcript will be posted once available.

About Superior Drilling Products, Inc.

Superior Drilling Products, Inc. is an innovative, cutting-edge drilling
tool technology company providing cost saving solutions that drive
production efficiencies for the oil and natural gas drilling industry.
The Company designs, manufactures, repairs and sells drilling tools. SDP
drilling solutions include the patented Drill-N-Ream® well
bore conditioning tool and the patented StriderTM oscillation
system technology. In addition, SDP is a manufacturer and refurbisher of
PDC (polycrystalline diamond compact) drill bits for a leading oil field
service company. SDP operates a state-of-the-art drill tool fabrication
facility, where it manufactures its solutions for the drilling industry,
as well as customers’ custom products. The Company’s strategy for growth
is to leverage its expertise in drill tool technology and innovative,
precision machining in order to broaden its product offerings and
solutions for the oil and gas industry.

Additional information about the Company can be found at: www.sdpi.com.

Safe Harbor Regarding Forward Looking Statements

This news release contains forward-looking statements and information
that are subject to a number of risks and uncertainties, many of which
are beyond our control. All statements, other than statements of
historical fact included in this release, regarding our strategy, future
operations, financial position, estimated revenue and losses, projected
costs, prospects, plans and objectives of management, are
forward-looking statements. The use of words “could,” “believe,”
“anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,”
“predict,” “potential,” “project”, “forecast,” “should” or “plan, and
similar expressions are intended to identify forward-looking statements,
although not all forward -looking statements contain such identifying
words. Certain statements in this release may constitute forward-looking
statements, including statements regarding the Company’s financial
position, market success with specialized tools, effectiveness of its
sales efforts, success at developing future tools, and the Company’s
effectiveness at executing its business strategy and plans. These
statements reflect the beliefs and expectations of the Company and are
subject to risks and uncertainties that may cause actual results to
differ materially. These risks and uncertainties include, among other
factors, our business strategy and prospects for growth; our cash flows
and liquidity; our financial strategy, budget, projections and operating
results; the amount, nature and timing of capital expenditures; the
availability and terms of capital; competition and government
regulations; and general economic conditions. These and other factors
could adversely affect the outcome and financial effects of the
Company’s plans and described herein.