I/O Signs Agreement with Trace for Seismic Acquisition Equipment; Multi-Year Deal Involves First Commercial Sale of Hybrid System Four

Business Wire,  July 6, 2004  

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HOUSTON -- Input/Output Inc. (NYSE:IO) announced today the signing of an agreement involving the company's newest innovation in land seismic imaging, the System Four Digital-Analog platform. Trace Energy Services, headquartered in Calgary, has committed to purchase several thousand analog channels of System Four over a multi-year period. The initial purchase involves the sale of a System Four central recording platform, 2,500 analog channels, and associated ground electronics, cables, and geophones.

The latest version of System Four incorporates hybrid functionality that enables contractors to acquire seismic data using either analog geophones or digital, full-wave VectorSeis(R) sensors -- in virtually any combination or configuration -- even on the same survey.

Jim White, President and CEO of Trace Energy Services, commented on the purchase, "We bought an all-VectorSeis configuration of System Four last December as part of I/O's technology acceleration alliance with Apache. The productivity enhancements that our field crews achieved using System Four gave us the confidence to commit to the I/O platform over an extended period. System Four allowed our crews to record and deliver seismic data to our customers more efficiently and allowed us to bid for, win, and execute more jobs in a highly competitive marketplace."

White continued, "We believe System Four is a breakthrough technology. It has performed extremely well in a tough operating environment and has given us the flexibility to tailor seismic surveys to the requirements of our clients whose sensor specifications vary between geophones and VectorSeis from one project to the next. I am pleased that we are deepening our commitment to I/O and taking this step to replace our installed base of older, analog-only land acquisition systems. This agreement helps to extend our position in North America as the leading seismic contractor using System Four."

Jim Hollis, Vice President of Land Imaging Systems at I/O, added, "We are delighted that Trace has captured substantial benefits from their initial purchase and believes System Four allows the company to differentiate itself. I/O designed System Four to help seismic acquisition contractors improve their productivity. It is encouraging to see Trace prove the merits of our design by capturing real operational efficiencies in the field. These benefits extend to Trace's clients, who get better seismic data more quickly such that they can make the right decisions about exploration and asset development. System Four is establishing itself as a platform that can create a three-way win, for oil & gas companies, for seismic contractors, and for I/O."

About I/O

I/O is the world's leading, technology-only seismic services provider. The company provides cutting-edge seismic acquisition equipment, software, and planning and seismic processing services to the global oil and gas industry. The company's technologies are applied in both land and marine environments, in traditional 2D and 3D surveys, and in rapidly growing areas like time-lapse (4D) reservoir monitoring and full-wave imaging. I/O has offices in the United States, Canada, Europe, China, Russia and the Middle East. Additional information is available at www.i-o.com.

About Trace Energy Services

Trace Energy Services is a leading international seismic services contractor that has land acquisition crews deployed throughout North America. Trace provides the most advanced seismic acquisition technologies to its customers in order to ensure optimal image quality, rapid cycle time, maximum operational efficiency, and safe and environmentally-friendly field operations. Trace is headquartered in Calgary and maintains offices in Houston, Denver, Midland, and California. Additional information about Trace Energy Services is available at www.tracenergy.com.

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