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     * Reaffirms Guidance for 2006

     * Will Hold Conference Call on Tuesday, December 19, 2006 at 9:00 a.m.
       Eastern Time

HOUSTON, Dec. 18 /PRNewswire-FirstCall/ — Input/Output, Inc. (NYSE: IO)
today reaffirmed its updated 2006 financial guidance that was initially
announced on November 8, 2006 and provided financial guidance for 2007.

OUTLOOK

The following statements are based on our current expectations. These
statements are forward looking and actual results may differ materially.
Factors affecting these forward-looking statements are detailed below.

Brian Hanson, Executive Vice President and Chief Financial Officer,
commented, “We continue to reaffirm our guidance updated in the third quarter
earnings call and expect earnings to range between $0.25 and $0.36 per diluted
share for 2006.”

“Based on our 2007 budget and our current pipeline of business, we expect
2007 revenues to range between $610 and $670 million, with much of the revenue
growth originating from continued market penetration of our new field
acquisition systems Scorpion(R) and Firefly(R), strong financial performance
at GXT and Marine and a strong overall seismic market. We expect ongoing
margin improvement, led by higher Scorpion(R) gross margins through lowered
costs and improved quality associated with the new release. Full year 2007
gross margins are expected to range between 29 and 31 percent and operating
expenses to range between 20 and 22 percent of revenue which includes
continued significant funding related to R&D and marketing expenses associated
with FireFly(R). As a result, we anticipate 2007 earnings to be between $0.45
and $0.60 per diluted share. Our business is not evenly distributed quarter-
to-quarter, and therefore, we are providing only annual guidance. Similar to
the past two years, we anticipate 2007 to be back-end loaded. This is mainly
due to timing issues related to permitting and other operational
considerations for GXT’s multi-client business, the potential delivery of the
next VectorSeis(R) Ocean system, and the natural budget/planning cycle of our
larger contractor customers who formulate capital spending plans during the
first quarter of each year. As a result, we anticipate that 55 percent or
more of our revenue will come in the second half of the year, with the first
quarter being the softest of the other three.”

Bob Peebler, I/O’s President and Chief Executive Officer, stated, “We
continue to see a strong market for our products and services with stronger
land and marine system sales, reflecting the growing recognition of our
improved analog systems, including the recently introduced Scorpion(R) land
system, as well as strong sales of our new DigiFin(TM) product line.

“We are already seeing the positive impact of those programs and expect to
enter 2007 in a much improved situation, which will benefit the acceleration
of future earnings growth. Overall, our business of seismic equipment and
processing services is expected to remain strong as the industry continues to
refocus on exploration, and this bodes well for 2007.”

CONFERENCE CALL

I/O has scheduled a conference call for Tuesday, December 19, 2006, at
9:00 a.m. Eastern Time. To participate in the conference call, dial
303-262-2211 at least 10 minutes before the call begins and ask for the
Input/Output conference call. A replay of the call will be available
approximately two hours after the live broadcast ends and will be accessible
until December 29, 2006. To access the replay, dial 303-590-3000 and use pass
code 11077987.

Investors, analysts and the general public will also have the opportunity
to listen to the conference call live over the Internet by visiting
http://www.i-o.com . Also, an archive of the web cast will be available
shortly after the call on the company’s website.

ABOUT I/O

I/O is a leading, technology-focused seismic solutions provider. The
company provides cutting-edge seismic acquisition equipment, software, and
planning and seismic processing services to the global oil and gas industry.
I/O’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. Headquartered in Houston,
Texas, I/O has regional offices in Canada, Latin America, Europe, China,
Russia, Africa and the Middle East. Additional information is available at
http://www.i-o.com .

The information included herein contains certain 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. These forward-looking
statements include statements concerning estimated revenues, earnings and
earnings per share for fiscal 2006 and 2007, and estimated gross margins,
EBITDA and operating expenses as a percentage of revenue for fiscal 2006 and
2007, future sales and market growth, and other statements that are not of
historical fact. Actual results may vary materially from those described in
these forward-looking statements. All forward-looking statements reflect
numerous assumptions and involve a number of risks and uncertainties. These
risks and uncertainties include the timing and development of the Company’s
products and services and market acceptance of the Company’s new and revised
product offerings; risks associated with competitor’s product offerings and
pricing pressures resulting therefrom; the relatively small number of
customers that the Company currently relies upon; the fact that a significant
portion of the Company’s revenues is derived from foreign sales; the Company’s
ability to successfully manage the integration of its acquisitions into the
Company’s operations; the risks that sources of capital may not prove
adequate; the Company’s inability to produce products to preserve and increase
market share; collection of receivables; and technological and marketplace
changes affecting the Company’s product line. Additional risk factors, which
could affect actual results, are disclosed by the Company from time to time in
its filings with the Securities and Exchange Commission, including its
Quarterly Reports on Form 10-Q for the quarter ended September 30, 2006.



                   Summary of 2007 Annual Earnings Guidance
                 (In millions except per share and % amounts)

                                      2007 Guidance Range

        Revenue                          $610 to $670
        Gross Margin %                    29% to 31%
        Operating Expense %               20% to 22%

        Diluted Earnings per Share      $0.45 to $0.60


                         Example Dilution Calculation

This example dilution calculation is being provided to assist our
investors with an illustration of the potential dilutive impact of our
outstanding convertible debt and convertible preferred stock. This example
calculation is not intended to represent our guidance for 2007.

Please note the convertible preferred stock is anti-dilutive within this
example range of earnings; however, it is subject to interest rate variations.
This example was calculated assuming a three month LIBOR rate of 5.5%. A
decrease of 1% in the three month LIBOR rate would result in the convertible
preferred stock becoming dilutive at the high range.

For questions regarding this example dilution calculation, please contact
Brian Hanson, Executive Vice President and Chief Financial Officer, at
281-879-3672.



    Net income per basic share calculation:              Low           High

      Net Income                                       $38.5          $52.6
      Weighted average number of common shares
       outstanding                                      80.5           80.5
      Basic net income per share                       $0.48          $0.65

    Net income per diluted share calculation
     (excludes impact of potential diluted stock
      options):

      Convertible debt (dilutive):
      Net income (added back for interest)             $42.5          $56.6
      Weighted average number of diluted shares         94.4           94.4
      Diluted net income per share before
       convertible preferred stock                    $0.450         $0.600

      Convertible preferred stock (anti-dilutive):
      Net income (added back for interest and
       preferred dividends)                            $45.0          $59.1
      Weighted average number of diluted shares         98.2           98.2
      Diluted net income per share                    $0.458         $0.602

CONTACTS: R. Brian Hanson
Chief Financial Officer
Input/Output (281) 879-3672

Jack Lascar, Partner
Karen Roan, SVP
DRG&E (713) 529-6600

SOURCE Input/Output, Inc.