As we look toward 2008 and beyond, I have focused my senior leadership team on delivering the bottom-line results from the strategy and technology portfolio we have put in place. We have made the requisite investments in a series of potentially game-changing technology platforms such as FireFly, Orca, DigiFIN, and VectorSeis Ocean, and have developed the sales, marketing, and administrative infrastructure required to scale the business globally.

As a result, I believe we now have a foundation for delivering what I am calling ‘The Breakout Year.’ I expect 2008 will be a period in which our advanced geophysical products and services continue to gain acceptance in a robust market for hydrocarbon exploration and production. Based on market dynamics and our own internal actions, I envision a world in which both our revenues and our margins continue to expand, while our internal expenses grow at a pace slower than they have in the past.

With our technologies and the team we have put in place, I truly believe ION is poised to deliver a breakout year to you, our shareholders. Thank you, as always, for your ongoing support.

Robert P. Peebler
President and CEO