The Company has developed and continues to develop unique and
practical technologies focused exclusively on the underground
infrastructure industry.

hdd pipe

Underground Solutions Unit Awarded Major Fiber -to-the-Premises Infrastructure Contract; Company to Provide Construction Management Services across the Northeas

Smith, Underground Solutions' CEO, stated, "This contract
is a great opportunity for UGSI to further expand its project
management and infrastructure service business.

ties trenchless

Such forward-looking statements involve certain risks,
assumptions and uncertainties, including the inability to generate and
secure the necessary product sale, or the lack of acceptance of the
company's products by its customers. In each case actual results may
differ materially from such forward-looking statements .

considerable piping

portals pipe

Certain statements in this news release contain forward-looking
information within the meaning of the Private Securities Litigation
Act of 1995.
The Registration Statement is available for use by the investors in the
August and September 2004 private offerings to resell the previously issued
common stock, and, in addition, is available for use by other stockholders of
the Company to resell 9,302,093 additional shares which have either previously
been issued or are issuable upon the exercise of outstanding options and
warrants.

routinely trenchless

Business Editors

PITTSBURGH ----Underground Solutions,
Inc. Duraliner(TM)
conforms to NSF 61 Standards for Drinking Water Components /Health
Effects. HOUSTON, Allis-Chalmers Energy Inc. provides a variety of products and services to
the oil and natural gas industry.

Forward-Looking Statements
This Press Release contains forward-looking statements (within the meaning
of Section 27A of the Securities Act of 1933 (the "Securities Act") and
Section 21E of the Securities Exchange Act of 1934) regarding Allis-Chalmers
Energy's business, financial condition, results of operations and prospects.
Words such as expects , anticipates, intends, plans, believes, seeks, estimates
and similar expressions or variations of such words are intended to identify
forward-looking statements, but are not the exclusive means of identifying
forward-looking statements in this Press Release.
Although forward-looking statements in this Press Release reflect the good
faith judgment of management, such statements can only be based on facts and
factors currently known to management.

Trenchless technologies such as grouting , coating, pipelining, pipe bursting, etc.

organize diversified

Petrocelli, LLC is the prime contractor and Underground Solutions will
act as subcontractor to provide project/construction management
services to oversee the deployment of fiber cable utilizing minimally
intrusive trenchless technologies. Allis-Chalmers filed the Registration Statement in connection
with its August and September 2004 private offering of 5,461,310 shares of
common stock.

directional disruptive

The company
does not undertake to publicly update or revise its forward-looking
statements even if experience or future changes make it clear that any
projected results (expressed or modified) will not be realized.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the common
stock in any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to the registration or qualification under the securities laws
of any such jurisdiction.

organize trenchless

Mark A.

(Amex: ALY) (the "Company") today announced that the Registration Statement on
Form S-1 that it filed with the Securities and Exchange Commission in
September 2004 has been declared effective by the Securities and Exchange
Commission.
The Company undertakes no obligation to revise or update any forward-looking
statements in order to reflect any event or circumstance that may arise after
the date of this Press Release.

The trenchless technology industry uses various technologies to limit the disturbance of surface structures during the new installation or the repair of existing underground structures.

jacking faster

Factors that could cause or
contribute to such differences in results and outcomes include, but are not
limited to, demand for oil and natural gas drilling services in the areas and
markets in which the Company operates, competition, obsolescence of products
and services , the Company's ability to obtain financing to support its
operations, environmental and other casualty risks, and the impact of
government regulation.

limit bursting

considerable microtunneling

Fusible C-900(TM), Fusible C-905(TM) and Fusible PVC(TM) are
NSF-61 certified and cover a full range of piping diameters from 3
inch to 48 inch to provide the only available method of installing a
continuous, monolithic, gasket-free PVC pipe or conduit capable of
being used in numerous trenchless (no-dig) or conventional "open-cut"
applications .
Duraliner(TM) is a unique patented process which allows the
Company to replace deteriorated water lines and other pressure pipes
with minimal excavation.

Trenchless technologies such as horizontal directional drilling (hdd), microtunneling, pipe jacking, etc.

contracting considerable

Readers are urged not to place undue reliance on these forward-
looking statements, which speak only as of the date of this Press Release .

piping disruptive

are routinely used for the new installation of utility piping for the sewer, water, gas, power, cable , and telecommunications industries.

contracting directional

"

About Underground Solutions:
Underground Solutions is a full service infrastructure management
and trenchless pipeline rehabilitation company.

piping disturbance

Applications for this revolutionary technology cover
every aspect of piping installations including both pressure and
non-pressure situations in the water, sewer, electrical, industrial
and telecommunications industries.

Allis-Chalmers Energy Announces Registration Statement for Resale of Common Stock Has Been Declared Effective By the Securities and Exchange Commission

portals diversified

, has entered
into a 5 year contract with Petrocelli, LLC to provide construction
management services and fiber cable pathway installation in the
Northeast and Mid-Atlantic regions.

disruptive limit

About Allis-Chalmers Energy
Allis-Chalmers Energy Inc.

In addition to being less disruptive, trenchless technologies are often faster and more cost-effective than the traditional direct burial construction techniques.

diversified burial

It is the only pipeline renewal system
resulting in a "stand alone" structural lining capable of handling
internal minimum operating pressures of 150 psi.

jacking contracting

This category has been established to organize web sites with information pertaining to trenchless technology so that directory users will have easy access to such information.

piping considerable

Trenchless technology is a diversified industry primarily within the construction and engineering industries, but with considerable ties to academic institutions (including multiple academic centers dedicated to trenchless technology), and with its own professional societies, trade magazines, website portals, etc.

ties grouting

The Company will not receive any proceeds from any resale of the
securities by the selling stockholders. Further information about the risks and uncertainties
that may impact the Company are set forth in the Company's most recent filings
on Form 10K (including without limitation in the "Risk Factors" Section) and
Form 10-Q, and in the Company's other SEC filings and publicly available
documents.

are routinely used for the repair or replacement of such existing underground utilities, often as part of a regular operations and maintenance program.

hdd jacking

Petrocelli, LLC has embarked on a
major initiative of providing Fiber-to-the-Premises ("FTTP"), a full
service network capable of providing voice, data and video services to
individual homes and neighborhoods across the United States. Revenue from this
(IDQ) indefinite quantity delivery FTTP contract could exceed $150
million over a five year period. UGSI's products developed and successfully
introduced into the market to date include Duraliner(TM), Fusible
C-900(TM), Fusible C-905(TM) and Fusible PVC(TM). Through its subsidiaries, Allis-Chalmers is
engaged in providing specialized equipment and operations to install casing
and production tubing required to drill and complete oil and gas wells,
directional and horizontal drilling services, the rental of "hevi-wate" spiral
drill pipe and related oilfield services , services to enhance production
through the installation of small diameter coiled tubing and chemicals into
producing oil and gas wells and air drilling services to natural gas
exploration and development operators. Consequently, forward-looking
statements are inherently subject to risks and uncertainties , and actual
results and outcomes may differ materially from the results and outcomes
discussed in the forward-looking statements.

piping routinely

(Pink Sheets:UGSI) announced today that it's wholly owned
subsidiary , Underground Solutions Management Group, Inc.

considerable pipe

Total spending on this industry over the next
20 years is projected by the EPA and various agencies to exceed one
trillion dollars.