EXHIBIT 99.1


NEWS FROM:                                   STEWART & STEVENSON
                                             CORPORATE HEADQUARTERS
            [STEWART & STEVENSON LOGO]       P.O. BOX 1637
                                             HOUSTON, TX  77251-1637

                                    Client:  Stewart & Stevenson Services, Inc.

                                   Contact:  John Simmons, CFO
                                             Stewart & Stevenson Services, Inc.
                                             713-868-7700
FOR IMMEDIATE RELEASE
                                             Ken Dennard / kdennard@easterly.com
                                             Lisa Elliott / lisae@easterly.com
                                             Easterly Investor Relations
                                             713-529-6600


                          STEWART & STEVENSON ANNOUNCES
                    CLOSING OF SALE OF DISCONTINUED BUSINESS

HOUSTON - SEPTEMBER 16, 2002 - STEWART & STEVENSON SERVICES, INC. ("the
Company") (NASDAQ:SSSS), a leading manufacturer, distributor, and provider of
service for industrial and energy related equipment, and a manufacturer of
medium tactical vehicles for the U.S. Army, today announced that it has closed
the previously announced agreement to sell a portion of its Petroleum Equipment
segment's blowout preventer, valve, elastomer and drilling riser products ("the
discontinued business") to Cooper Cameron Corporation for $14.75 million. As
provided under the agreement, payment of the full purchase price was made at
closing and received by the Company.

      The Company will lease to Cooper Cameron Corporation a portion of its
Telge Road manufacturing facility in order for Cooper Cameron Corporation to
complete work in progress at the time of closing. The Company retained assets
related to the completion of certain contracts as well as the receivables and
certain liabilities of the discontinued business.

                            Stewart & Stevenson Services, Inc., founded in 1902,
                            is a billion-dollar company that manufactures,
                            distributes, and provides service for a wide range
[STEWART & STEVENSON LOGO]  of industrial products and diesel-powered equipment
                            to key industries worldwide, including power
                            generation, defense, airline, marine, petroleum, and
                            transportation. For more information on Stewart &
                            Stevenson visit WWW.SSSS.COM.

This press release contains forward-looking statements that are based on
management's current expectations, estimates, and projections. These statements
are not guarantees of future performance and involve a number of risks,
uncertainties, and assumptions and are made pursuant to the Safe Harbor
Provisions of the Private Securities Litigation Reform Act of 1995. Many
factors, including those discussed more fully elsewhere in this release and in
the Company's filings with the Securities and Exchange Commission, particularly
its latest annual report on Form 10-K, as well as others, could cause results to
differ materially from those stated. Specific important factors that could cause
actual results, performance, or achievements to differ materially from such
forward-looking statements include risk of competition, risks relating to
technology, risks of general economic conditions, risks of oil and gas industry
economic conditions, risks of airline industry economic conditions, risks as to
terrorist attacks on the U.S. and their impact on the U.S. economy, risks
relating to personnel, risks of dependence on government, inherent risks of
government contracts, risks of claims and litigation, risks of product defects,
risks as to foreign sales and global trade matters, risks as to cost controls,
risks as to acquisitions, risks as to currency fluctuations, risks as to
environmental and safety matters, risks as to distributorships, and credit
risks, all as more specifically outlined in the Company's latest annual report
on Form 10-K. In addition, such forward-looking statements could be affected by
general industry and market conditions and growth rates, general domestic and
international conditions including interest rates, inflation and currency
exchange rates, and other future factors. Actual outcomes and results may differ
materially from what is expressed or forecasted in such forward-looking
statements.
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