coast of China. The system was designed to maximize operational efficiency, providing space-saving and time-saving benefits. To support the increased activity in the region, the Company has established a sales and service office in China. IN 2002 D RIL-QUIP obtained a contract from a major operator for a production system package consisting of surface well- heads, valves, production trees, production risers and tieback connectors. This equipment is scheduled for installation on a Tension Leg Platform (TLP) in approxi- mately 4,700 feet of water in the Gulf of Mexico. The contract for this equipment represents a milestone for D RIL-QUIP, positioning the Company as a systems provider for offshore field developments of this type. IN 2002 DRIL-QUIP increased sales of its surface wellhead and tree products in strategic market areas including Denmark, Norway, China and Nigeria, improving our global status as a supplier of platform wellhead and tree equipment. Specifically designed platform wellheads and horizontal trees were developed and installed off the The LS-15™ liner hanger system, one of DRIL-QUIP’S newest products, was prototype tested in 2002. The system was thoroughly analyzed and tested to confirm its design features and operational performance. This new product is a natural extension of the Company’s existing product lines and provides DRIL-QUIP an entrance into the downhole tool market. Horizontal Surface Tree LS-15 liner hanger 10 DRIL-QUIP 2002 Annual Report