Milberg Weiss Files Class Action Suit Against Seitel, Inc

Business Wire,  May 10, 2002  

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Business Editors/Financial Analysts

SAN DIEGO--(BUSINESS WIRE)--May 10, 2002

Milberg Weiss (http://www.milberg.com/seitel/) today announced that a class action has been commenced in the United States District Court for the Southern District of Texas on behalf of purchasers of Seitel, Inc. ("Seitel") (NYSE:SEI) securities during the period between July 13, 2000 and April 1, 2002 (the "Class Period").

If you wish to serve as lead plaintiff, you must move the Court no later than July 1, 2002. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach or Darren Robbins of Milberg Weiss at 800/449-4900 or via e-mail at wsl@milberg.com. If you are a member of this class, you can join this class action online at http://www.milberg.com/seitel/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges Seitel and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Seitel provides seismic data and related geophysical services to the petroleum industry. The complaint alleges that during the Class Period, defendants issued materially false and misleading statements about Seitel's business, its financial results and its prospects causing its stock to trade at artificially inflated levels, including as high as $23.03 in 3/01. In fact, defendants' reported financial results were materially misstated due to the Company's inclusion in revenue of payments from parties with which Seitel was jointly acquiring data. Seitel was also reporting revenue for licenses sold to customers who had not yet even decided which data they wished to purchase from Seitel. Defendants took advantage of this inflation in Seitel's stock price, selling 565,480 shares of their Seitel stock for proceeds of $10.2 million.

Then on 4/1/02, Seitel announced the restatement of its financial statements for fiscal 2000 and the first three quarters of 2001. Seitel did not meet the financial covenants for its long-term debt under the restricted earnings and has had to obtain waivers from its lenders. Seitel's stock now trades at less than $9 per share.

Plaintiff seeks to recover damages on behalf of all purchasers of Seitel securities during the Class Period (the "Class"). The plaintiff is represented by Milberg Weiss Bershad Hynes & Lerach LLP, who has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Milberg Weiss Bershad Hynes & Lerach LLP, a 170-lawyer firm with offices in New York, San Diego, San Francisco, Los Angeles, Boca Raton, Seattle and Philadelphia, is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of World War II and other human rights violations, and has been responsible for more than $30 billion in aggregate recoveries. The Milberg Weiss website (http://www.milberg.com) has more information about the firm.

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