Universal Compression, Inc. Completes Tender Offer for Its 9 7/8% Senior Discount Notes

June 16, 2003

HOUSTON, June 16 /PRNewswire/ -- Universal Compression, Inc. ("Universal Compression"), a wholly owned subsidiary of Universal Compression Holdings, Inc. (NYSE: UCO), announced today that it has successfully completed the tender offer for its 9 7/8% Senior Discount Notes due 2008 (CUSIP No. 913433AB4), (the "Notes").

As of 12:00 midnight, New York City time, on June 11, 2003 (the "Expiration Date"), Universal Compression had accepted tenders of its Notes from holders of $170.15 million (74.06%) of the $229.75 million outstanding Notes pursuant to the Offer to Purchase dated May 14, 2003.

Holders of Notes who tendered on or prior to 5:00 p.m., New York City time, on May 20, 2003 (the "Early Tender Date"), received the total consideration of 105.35% of the principal amount of the Notes validly tendered, plus accrued and unpaid interest up to, but not including, the applicable payment date. Holders who tendered their Notes after 5:00 p.m., New York City time, on the Early Tender Date but prior to the Expiration Date, received 104.938% of the principal amount of the Notes validly tendered, plus accrued and unpaid interest up to, but not including, the applicable payment date.

As previously announced on May 27, 2003, Universal Compression called the outstanding Notes for redemption on June 26, 2003 (the "Redemption Date"), pursuant to the terms of the indenture governing the Notes. The redemption price is equal to 104.938% of the principal amount of the Notes, plus accrued and unpaid interest to, but not including, the Redemption Date. Universal Compression expects to retire all of the outstanding Notes pursuant to the tender offer and the redemption.

This announcement is not an offer to purchase or a solicitation of acceptance of the Tender Offer with respect to the 9 7/8% Senior Discount Notes due 2008. The Tender Offer was made upon the terms and subject to the conditions set forth in the Offer to Purchase and the accompanying Letter of Transmittal, each dated as of May 14, 2003.

Universal Compression, headquartered in Houston, Texas, is a leading natural gas compression services company, providing a full range of contract compression, sales, operations, maintenance and fabrication services to the domestic and international natural gas industry.

Statements about Universal Compression's outlook and all other statements in this release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside Universal Compression's control, which could cause actual results to differ materially from such statements. While Universal Compression believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the demand for Universal Compression's products and services and worldwide economic and political conditions. These and other risk factors are discussed in Universal Compression's filings with the Securities and Exchange Commission, copies of which are available to the public. Universal Compression expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events, or otherwise.

SOURCE Universal Compression, Inc.