On December 28, 2009, Flotek Industries Inc. was notified by the New York Stock Exchange (the NYSE) that the Company had fallen below one of the NYSEs continued listing standards. The Company received this notification pursuant to Rule 802.01B (I) of the NYSE Listed Company Manual because its 30-day average market capitalization and its total stockholders equity were both below the NYSE required $50 million threshold. The Company has 45 days from receipt of this notice to submit a plan to the NYSE that demonstrates its ability to achieve compliance with the NYSE continued listing standards within an 18-month cure period. The Company has been in active discussions with the NYSE concerning the contents of such plan. During the submission and plan implementation process, the Companys common stock will continue to be listed on the NYSE, subject to the Companys compliance with other NYSE continued listing requirements.

At the Special Meeting, Flotek Industries Inc.'s stockholders approved an amendment to the company's Certificate of Incorporation to increase the number of authorized shares of common stock to 80 million from 40 million. The company will now file an Amendment to its Certificate of Incorporation with the Secretary of State of Delaware completing the process. The company also announced that Kenneth T. Hern and John Reiland have been appointed to the Board of Directors. Mr. Hern brings over three decades of oil and gas experience to the Flotek Board. Mr. Hern retired from Texaco Inc. in 1994 after 25 years of service. During his tenure he served as President of Texaco Brazil, Vice Chairman and Managing Director of Texaco Nigeria Limited and as President of Texaco's Saudi Arabian business unit. He currently serves as Chairman and CEO of Nova Biosource Fuels Inc. Nova is currently in reorganization pursuant to Chapter 11 of the federal bankruptcy statutes. Mr. Reiland, a Certified Public Accountant, is currently the Chief Financial Officer of SingerLewak, a leading accounting services firm headquartered in Los Angeles. Mr. Reiland has significant experience in corporate leadership and finance including the Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer roles. The company also elected Mr. Reiland to serve as the Chair of the company's Audit Committee. On November 5, 2009 Mr. Kevin McMahon and Mr. Barry Stewart submitted their resignations, effective immediately, as members of the company's Board of Directors. The company also announced that the Board of Directors has appointed Glenn Neslony, CPA to the position of Vice President and Treasurer of the company. Mr. Neslony, a Certified Public Accountant, has been employed by Flotek for the past four years in the accounting group, most recently as Director of SEC Reporting. Mr. Neslony will be responsible for overseeing the accounting and reporting responsibilities of the company.

Flotek Industries Inc. reported consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company has posted total revenue of $23.8 million, a decrease of 62.1%, compared to $62.8 million for the third quarter of 2008. Revenue decreased in all of its operating segments, a result of a decrease in drilling activity. Loss from operations totaled $2.5 million, compared to income from operations of $12.2 million in the third quarter of 2008. Net loss was $23.1 million or $1.18 per share. That compares to net profit in the quarter ending September 30, 2008 of $5.1 million or $0.27 per share. For the nine months, the company's revenue decreased to $88.0 million from $166.1 million for the first nine months of 2008. Net loss was $44.9 million or $2.29 per share. That compares to net profit in the nine months ending September 30, 2008 of $12.8 million or $0.66 per share on a fully diluted basis.