Superior Drilling Products Reports Second Quarter 2017 Preliminary Revenue Nearly Quadrupled Over Prior-Year Period; Increases 2017 Revenue Expectations

Announces Second Quarter 2017 Teleconference

VERNAL, Utah–(BUSINESS WIRE)–Superior
Drilling Products, Inc. (NYSE MKT: SDPI) (“SDP” or the “Company”), a
designer and manufacturer of drilling tool technologies, today announced
preliminary unaudited revenue of approximately $3.7 million to $4.0
million for the second quarter ended June 30, 2017. Revenue is expected
to be almost four times higher than the prior-year period and up more
than 16% over the trailing first quarter of 2017. Preliminary results
are subject to change pending review by the Company’s independent
accountants.

“Increasing market penetration and deployment of our flagship
Drill-N-Ream^® (DnR) well bore conditioning tool by oil & gas
operators drove revenue growth during the quarter. We continue to see
solid tool sales as we gain market share. And, as more of our
Drill-N-Ream^® tools are being used in the field, we are
realizing higher volumes of recurring refurbishment business,” commented
Troy Meier, Chairman and CEO of Superior Drilling Products. “The volume
we had in the second quarter has given us greater confidence in the
outlook for 2017. As a result, we have increased our full-year revenue
estimate by 20% at the midpoint.”

The Company’s domestic market channel partner for the DnR, Drilling
Tools International, Inc., has exceeded its 10% market share goal for
DnR’s on horizontal rigs in the U.S. and Canada. DTI is also on track to
achieve its 12.5% goal by the end of 2017.

Expectations for Full-Year 2017 Revenue Improved

For the full year ended December 31, 2017, the Company increased its
revenue estimate to $14 million to $16 million up from the previous
estimate of $12 million to $13 million.

Second Quarter 2017 Teleconference and Webcast

The Company will release its complete second quarter 2017 financial
results before the opening of financial markets on Friday, August 11,
2017, and will host a conference call that same day.

A telephonic replay will be available from 1:00 p.m. MT (3:00 p.m. ET)
the day of the teleconference until Friday, August 18, 2017. To listen
to the archived call, dial (412) 317-6671 and enter conference ID number
13665984, 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 Strider^TM oscillation
system technology. In addition, SDP is a manufacturer and refurbisher of
PDC (polycrystalline diamond compact) drill bits for a leading oil field
services 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” within the
meaning of the safe harbor provisions, 15 U.S.C. § 78u-5, of the Private
Securities Litigation Reform Act of 1995. 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 “preliminary,” “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
market success with specialized tools, effectiveness of its sales
efforts, success of its distribution partner, customer acceptance of the
drilling technology and the Company’s effectiveness at executing its
business strategy and plans. These statements reflect the current
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, SDP’s business
strategy and prospects for growth; customer acceptance of the Company’s
technologies, the status of the Oil & Gas industry, cash flows and
liquidity; 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. Therefore, you should not rely on
any of these forward-looking statements. Any forward-looking statement
made by the Company in this news release is based only on information
currently available to the Company and speaks only as of the date on
which it is made. The Company undertakes no obligation to publicly
update any forward-looking statement, whether written or oral, that may
be made from time to time, whether as a result of new information,
future developments or otherwise.

Contacts

For more information, contact investor relations:
Kei
Advisors LLC
Deborah K. Pawlowski, (716) 843-3908
dpawlowski@keiadvisors.com