Financial Highlights   --------------------                                                          Three Months Ended   (millions of Cdn.$ except per share data)                  March 31                                                     -----------------------                                                           2009        2008                                                     ----------- -----------                                                             (unaudited)    Sales                                             $    140.7  $    140.6    Gross profit                                            26.4        27.1   Gross profit - % of sales                              18.8%       19.2%    EBITDA(1)                                                9.5        10.2   EBITDA(1) % of sales                                    6.8%        7.2%    Net income                                        $      6.0  $      6.3    Per share - basic                                 $     0.33  $     0.34             - diluted                               $     0.33  $     0.34    Net working capital(2)                            $    153.2  $    117.4   Bank operating loan(2)                            $     40.2  $     21.8   

"Our diversification strategies continue to progress, offsetting the decline in activity levels that has affected our core oilfield supply business," said Michael West, President and CEO.

Net income for the first quarter of 2009 was $6.0 million, down $0.3 million from the first quarter of 2008. Sales were $140.7 million, consistent with the first quarter of 2008. Capital project business comprised 62% of total sales (2008 - 55%), and increased $9.5 million (12%) over the prior year period due to continued growth of oil sands revenues. Gross profit was down $0.7 million with margins reducing by 0.4% from the prior year period. Selling, general and administrative expenses remained flat at $16.9 million for the quarter with increased facility costs being offset by lower variable compensation costs and reduced selling and marketing costs. Lower interest expense was associated with lower floating interest rates in the first quarter of 2009 compared to the same period in 2008. Income taxes decreased by $0.2 million (3%) in the first quarter compared to the prior year period due to lower pre-tax earnings. The weighted average number of shares outstanding during the first quarter decreased by 0.3 million shares (2%) from the prior year period principally due to shares purchased for cancellation pursuant to the Company's Normal Course Issuer Bid. Net income per share (basic) was $0.33 in the first quarter of 2009, down 3% from that earned in the first quarter 2008.

Business Outlook

The recent upheaval in global credit markets has contributed to significant capital market volatility, resulting in deleveraging, repricing of risk and ultimately the retrenchment of consumption. Oil and gas markets have experienced similar upheaval. While crude oil prices have recently rebounded from first quarter lows, natural gas prices are currently at the lowest levels seen in a decade. Our customers continue to assess the impact of these changes on their businesses and capital expenditure plans in 2009. Oil and gas well completions and rig counts have declined sharply at the end of the first quarter compared to 2008 levels and we expect the decline will continue through 2009 and into 2010. Approximately 60% of the Company's sales are driven by our customers' capital project expenditures.

The Company expects these conditions will contribute to increased consolidation of oil and gas customers, stable to deflationary product costs and improved labour availability. For the balance of 2009, sales levels are expected to decline compared to 2008 as expected lower oilfield sales are partially offset by expected increased sales to oil sands, midstream and industrial product end use markets. The Company has a strong balance sheet and is positioned to pursue our strategies to increase market share in both the conventional oilfield and oil sands markets.

Over the medium to longer term, the Company is confident that it can continue to strengthen and improve the profitability of its distribution network by expanding its product lines, supplier relationships and capability to service additional oil and gas and industrial end use markets.

   (1) EBITDA represents net income before interest, taxes, depreciation and       amortization. EBITDA is a supplemental non-GAAP financial measure       used by management, as well as industry analysts, to evaluate       operations. Management believes that EBITDA, as presented, represents       a useful means of assessing the performance of the Company's ongoing       operating activities, as it reflects the Company's earnings trends       without showing the impact of certain charges. The Company is also       presenting EBITDA and EBITDA as a percentage of sales because it is       used by management as supplemental measures of profitability. The use       of EBITDA by the Company has certain material limitations because it       excludes the recurring expenditures of interest, income tax, and       amortization expenses. Interest expense is a necessary component of       the Company's expenses because the Company borrows money to finance       its working capital and capital expenditures. Income tax expense is a       necessary component of the Company's expenses because the Company is       required to pay cash income taxes. Amortization expense is a       necessary component of the Company's expenses because the Company       uses property and equipment to generate sales. Management compensates       for these limitations to the use of EBITDA by using EBITDA as only a       supplementary measure of profitability. EBITDA is not used by       management as an alternative to net income, as an indicator of the       Company's operating performance, as an alternative to any other       measure of performance in conformity with generally accepted       accounting principles or as an alternative to cash flow from       operating activities as a measure of liquidity. A reconciliation of       EBITDA to Net income is provided within the Company's Management       Discussion and Analysis. Not all companies calculate EBITDA in the       same manner and EBITDA does not have a standardized meaning       prescribed by GAAP. Accordingly, EBITDA, as the term is used herein,       is unlikely to be comparable to EBITDA as reported by other entities.    (2) Net working capital is defined as current assets less accounts       payable and accrued liabilities, income taxes payable and other       current liabilities, excluding the bank operating loan. Net working       capital and bank operating loan are as at quarter end.    Additional Information   ----------------------   

Additional information relating to CE Franklin, including its first quarter 2009 Management Discussion and Analysis and interim consolidated financial statements and its Form 20-F/Annual Information Form, is available under the Company's profile on the SEDAR website at http://www.sedar.com/ and at http://www.cefranklin.com/

   Conference Call and Webcast Information   ---------------------------------------   

A conference call to review the 2009 first quarter results, which is open to the public, will be held on Wednesday, April 29, 2009 at 11:00 a.m. Eastern Time (9:00 a.m. Mountain Time).

Participants may join the call by dialing 1-416-644-3416 in Toronto or dialing 1-800-733-7571 at the scheduled time of 11:00 a.m. Eastern Time. For those unable to listen to the live conference call, a replay will be available at approximately 1:00 p.m. Eastern Time on the same day by calling 1-416-640-1917 in Toronto or dialing 1-877-289-8525 and entering the Passcode of 21302002 followed by the pound sign and may be accessed until midnight Monday, May 11, 2009.

The call will also be webcast live at: http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2602160 and will be available on the Company's website at http://www.cefranklin.com/.

Michael West, President and Chief Executive Officer will lead the discussion and will be accompanied by Mark Schweitzer, Vice President and Chief Financial Officer. The discussion will be followed by a question and answer period.

About CE Franklin

For more than half a century, CE Franklin has been a leading supplier of products and services to the energy industry. CE Franklin distributes pipe, valves, flanges, fittings, production equipment, tubular products and other general oilfield supplies to oil and gas producers in Canada as well as to the oilsands, refining, heavy oil, petrochemical, forestry and mining industries. These products are distributed through its 44 branches, which are situated in towns and cities serving particular oil and gas fields of the western Canadian sedimentary basin.

Forward-looking Statements: The information in this news release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and other applicable securities legislation. All statements, other than statements of historical facts, that address activities, events, outcomes and other matters that CE Franklin plans, expects, intends, assumes, believes, budgets, predicts, forecasts, projects, estimates or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. These forward-looking statements are based on management's current belief, based on currently available information, as to the outcome and timing of future events. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements and refer to the Form 20-F or our annual information form for further detail.

   Management's Discussion and Analysis as at April 28, 2009    The following Management's Discussion and Analysis ("MD&A") is provided   to assist readers in understanding CE Franklin Ltd.'s ("CE Franklin" or   the "Company") financial performance and position during the periods   presented and significant trends that may impact future performance of CE   Franklin. This discussion should be read in conjunction with the   Company's interim consolidated financial statements for the three month   period ended March 31, 2009 and the Management's Discussion and Analysis   and the consolidated financial statements for the year ended December 31,   2008.    All amounts are expressed in Canadian dollars and in accordance with   Canadian generally accepted accounting principles ("Canadian GAAP"),   except where otherwise noted.    Overview   

CE Franklin is a leading distributor of pipe, valves, flanges, fittings, production equipment, tubular products and other general industrial supplies primarily to the oil and gas industry in Canada through its 44 branches situated in towns and cities that serve oil and gas fields of the western Canadian sedimentary basin. In addition, the Company distributes similar products to the oil sands, midstream, refining, and petrochemical industries and non-oilfield related industries such as forestry and mining.

The Company's branch operations service over 3,000 customers by providing the right materials where and when they are needed, and for the best value. Our branches, supported by our centralized Distribution Centre in Edmonton, Alberta, stock over 25,000 stock keeping units. This infrastructure enables us to provide our customers with the products they need on a same day or over night basis. Our centralized inventory and procurement capabilities allow us to leverage our scale to enable industry leading hub and spoke purchasing and logistics capabilities. The branches are also supported by services provided by the Company's corporate office in Calgary, Alberta including sales, marketing, product expertise, logistics, invoicing, credit and collection and other business services.

The Company's shares trade on the TSX ("CFT") and NASDAQ ("CFK") stock exchanges. Smith International Inc., a major oilfield service company based in the United States, owns 55% of the Company's shares.

Business and Operating Strategy

The Company is pursuing the following strategies to grow its business profitably:

   -   Expand the reach and market share serviced by our distribution       network. We are focusing our sales efforts and product offering on       servicing complex, multi-site needs of large and emerging customers       in the energy sector. In 2008, we continued to invest in our       distribution network by opening a branch operation in Red Earth,       Alberta and by expanding our facilities at five existing branch       operations. Last spring, we successfully completed the move to our       new 153,000 square foot Distribution Centre and nine acre pipe yard       located in Edmonton, Alberta which positions us to service our       growing distribution network. Organic growth is expected to be       complemented by selected acquisitions such as the December 2007       acquisition of JEN Supply which increased our market share in two       existing markets and expanded our presence in two additional markets.    -   Expand our production equipment service capability to capture more of       the product life cycle requirements for the equipment we sell such as       down hole pump repair, oilfield engine maintenance, well optimization       and on site project management. This will differentiate our service       offering from our competitors and deepen our relationship with       customers. In the first quarter of 2009, we have opened a valve       actuation centre at our Distribution Centre, to service our       customers' valve automation requirements. The acquisition of Full       Tilt in July 2007 provided us with the capability to service oilfield       engines and parts that we were previously selling, and, by doing so,       position us to attract new customers to our core oilfield equipment       distribution business.    -   Focus on the oil sands and industrial project and MRO business by       leveraging our existing supply chain infrastructure, product and       project expertise. The Company is expanding its product line and       supplier relationships and expertise to provide the automation,       instrumentation and other specialty products that these customers       require.    Business Outlook   

The recent upheaval in global credit markets has contributed to significant capital market volatility, resulting in deleveraging, repricing of risk and ultimately the retrenchment of consumption. Oil and gas markets have experienced similar upheaval. While crude oil prices have recently rebounded from first quarter lows, natural gas prices are currently at the lowest levels seen in a decade. Our customers continue to assess the impact of these changes on their businesses and capital expenditure plans in 2009. Oil and gas well completions and rig counts have declined sharply at the end of the first quarter compared to 2008 levels and we expect the decline will continue through 2009 and into 2010. Approximately 60% of the Company's sales are driven by our customers' capital project expenditures.

The Company expects these conditions will contribute to increased consolidation of oil and gas customers, stable to deflationary product costs and improved labour availability. For the balance of 2009, sales levels are expected to decline compared to 2008 as expected lower oilfield sales are partially offset by expected increased sales to oil sands, midstream and industrial products. The Company has a strong balance sheet and is positioned to pursue our strategies to increase market share in both the conventional oilfield and oil sands markets.

Over the medium to longer term, the Company is confident that it can continue to strengthen and improve the profitability of its distribution network by expanding its product lines, supplier relationships and capability to service additional oil and gas and industrial end use markets.

   Operating Results    The following table summarizes CE Franklin's results of operations:    (in millions of Cdn.    dollars except per    share data)                        Three Months Ended March 31                             -----------------------------------------------                                       2009                    2008                             ----------------------- -----------------------    Sales                     $    140.7      100.0%  $    140.6      100.0%     Cost of sales               (114.3)    (81.2)%      (113.5)    (80.8)%                             ----------- ----------- ----------- -----------     Gross profit                  26.4       18.8%        27.1       19.2%    Selling, general and    administrative expenses       (16.9)    (12.0)%       (16.9)    (12.0)%                             ----------- ----------- ----------- -----------    EBITDA(1)                        9.5        6.8%        10.2        7.2%   Amortization                    (0.6)     (0.4)%        (0.6)     (0.4)%   Interest                        (0.2)     (0.1)%        (0.4)     (0.3)%                             ----------- ----------- ----------- -----------   Income before taxes              8.7        6.2%         9.2        6.5%   Income tax expense              (2.7)     (1.9)%        (2.9)     (2.0)%                             ----------- ----------- ----------- -----------   Net income                       6.0        4.3%         6.3        4.5%                             ----------- ----------- ----------- -----------                             ----------- ----------- ----------- -----------    Net income per share     Basic                   $     0.33              $     0.34     Diluted                 $     0.33              $     0.34    Weighted average number    of shares outstanding    (000's)     Basic                       18,013                  18,333     Diluted                     18,189                  18,523    (1) EBITDA represents net income before interest, taxes, depreciation and       amortization. EBITDA is a supplemental non-GAAP financial measure       used by management, as well as industry analysts, to evaluate       operations. Management believes that EBITDA, as presented, represents       a useful means of assessing the performance of the Company's ongoing       operating activities, as it reflects the Company's earnings trends       without showing the impact of certain charges. The Company is also       presenting EBITDA and EBITDA as a percentage of sales because it is       used by management as supplemental measures of profitability. The use       of EBITDA by the Company has certain material limitations because it       excludes the recurring expenditures of interest, income tax, and       amortization expenses. Interest expense is a necessary component of       the Company's expenses because the Company borrows money to finance       its working capital and capital expenditures. Income tax expense is a       necessary component of the Company's expenses because the Company is       required to pay cash income taxes. Amortization expense is a       necessary component of the Company's expenses because the Company       uses property and equipment to generate sales. Management compensates       for these limitations to the use of EBITDA by using EBITDA as only a       supplementary measure of profitability. EBITDA is not used by       management as an alternative to net income, as an indicator of the       Company's operating performance, as an alternative to any other       measure of performance in conformity with generally accepted       accounting principles or as an alternative to cash flow from       operating activities as a measure of liquidity. A reconciliation of       EBITDA to Net income is provided within the table above. Not all       companies calculate EBITDA in the same manner and EBITDA does not       have a standardized meaning prescribed by GAAP. Accordingly, EBITDA,       as the term is used herein, is unlikely to be comparable to EBITDA as       reported by other entities.    First Quarter Results   

Net income for the first quarter of 2009 was $6.0 million, down $0.3 million from the first quarter of 2008. Sales were $140.7 million, consistent with the first quarter of 2008. Capital project business comprised 62% of sales (2008 - 55%), and increased $9.5 million (12%) over the prior year period due to continued growth of oil sands revenues. Gross profit was down $0.7 million with margins reducing by 0.4% from the prior year period due to the increase in lower margin oil sands and increased competitive pressure. Selling, general and administrative expenses remained flat at $16.9 million for the quarter with increased facility costs being offset by lower variable compensation costs and reduced selling and marketing costs.