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     * Leading provider of E&P software solutions a strong strategic fit

     * Acquisition expected to be accretive to earnings in 2004

HOUSTON, Feb. 24 /PRNewswire-FirstCall/ — Input/Output, Inc. (NYSE: IO)
today announced that it has completed the acquisition of Concept Systems Ltd.,
(CSL), a Scotland-based company that is a leading provider of software,
systems, and services for towed streamer, seabed and land seismic acquisition.
Concept Systems is the market leader in delivering complex integrated
planning, navigation and data management solutions to seismic contractors who
are acquiring 2D, 3D, and 4D data. CSL software is installed on the majority
of towed streamer vessels worldwide and has rapidly become an integral part of
both redeployable and permanent seabed acquisition systems. CSL is a key
solutions provider for BP’s Valhall permanent seabed reservoir monitoring
project in the North Sea and the company should be well positioned to benefit
from rapid growth as 4D, life-of-field seismic projects are increasingly
pursued by the major oil companies.

During 2004, CSL is projected to generate approximately $16 to $18 million
in revenues. As a software company, CSL generates attractive operating
margins. The total consideration paid for the acquisition was approximately
$36 million in cash and 1.68 million shares of I/O common stock. No debt was
assumed. The acquisition is expected to be accretive to I/O’s earnings in
2004. The transaction closed on February 24, 2004.

Bob Peebler, I/O’s President and Chief Executive Officer, said, “The
synergies between Concept and I/O are highly compelling across all of our
product lines. I am pleased to have Concept Systems as part of the I/O family
and view the company as an exceptionally strong strategic fit that will help
us drive out logistics costs and shorten cycle times in field operations on
behalf of our customers. In towed streamer, we believe there is a unique fit
between Concept’s integrated data management software platform and the
technologies I/O provides to vessel operators. Concept software manages the
data streams from multiple seismic sub-systems where I/O has a sizeable market
position including source, source control, acoustic positioning, streamer and
streamer control and acquisition recording. Concept Systems is effectively
acting as the software “glue” that interconnects all elements of the seismic
workflow from survey design and planning through acquisition and on into

“By leveraging their core strengths of building software data management
systems that optimize seismic operations, the Concept Systems team has
extended their software platform from the towed streamer environment into both
seabed and land applications. Concept’s marine business is positioned for
rapid growth as seabed and 4D acquisition activities, including those using
VectorSeis digital full-wave sensors, become a bigger part of oil companies
imaging requirements.”

In addition, Concept Systems is in the final stages of developing an
integrated software data management system for land seismic acquisition. The
land acquisition workflow is highly fragmented today. Concept’s application,
targeting the optimization of seismic operations in the field, is expected to
be well received by contractors and open up a new market that has significant
future upside when combined with I/O’s System Four acquisition platform.

Alistair Hay, Managing Director of Concept Systems, commented, “When we
started Concept 20 years ago, we did not know where our journey would take us.
We are delighted that we will continue our voyage as part of the I/O family.
Our management teams share a common view of where the seismic industry is
heading. Over the last three to four years, Concept has made significant
investments in areas that show a great deal of promise — imaging from the
seabed; 4D life-of-field seismic; and better integration of land acquisition
operations via software. Our customers face numerous challenges in finding
more oil and gas and in making their operations more efficient. The best way
to address these challenges is to apply next-generation technology solutions
that are comprised of both hardware and software. By combining I/O’s
strengths in equipment and technology systems with Concept’s strengths in
software and services, we will be able to deliver a truly unique, high-value
added solution that will change the way seismic data is acquired, managed, and

In connection with the acquisition of Concept Systems, I/O has entered
into Employment Inducement Stock Option Agreements with certain key employees
of CSL, providing for the grant of stock options to each such key employee to
purchase shares of common stock of I/O as material inducements to their
joining the company. The options are exercisable into an aggregate amount of
365,000 shares of common stock.

The shares of I/O’s common stock issued upon consummation of the
acquisition of CSL, and issuable upon exercise of the options granted in
connection with the acquisition, have not been registered under the Securities
Act of 1933, as amended, and may not be offered or sold in the United States
absent registration or an applicable exemption from registration requirements.

Additional information about the transaction can be found on I/O’s website

Input/Output, Inc. is the major independent provider of seismic equipment
and acquisition imaging technology for land, marine, and seabed applications.
In addition, through its GMG/AXIS group, I/O offers specialty seismic
processing services, including anisotropic imaging, that allow oil companies
to more accurately image subsurface features in petroleum reservoirs. The
company’s technologies are applied in traditional 2D and 3D surveys along with
rapidly growing areas like time-lapse 4D reservoir monitoring and full-wave,
multicomponent data acquisition. I/O has offices in the United States,
Canada, Europe, China, Russia and the Middle East. Additional information
about Input/Output, Inc. is available at

Additional information about Concept Systems Ltd. is available at

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 E&P companies’ imaging requirements,
Concept Systems’ expected future revenues and operating margins and developing
markets. 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 the Company’s restructuring program; risks
associated with competitor’s product offerings and pricing pressures resulting
therefrom; the Company’s inability to produce products to preserve and
increase market share; 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
U.S. Securities and Exchange Commission.

J. Michael Kirksey
Chief Financial Officer
Input/Output (281) 879-3672

Input/Output (281) 879-3658

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

SOURCE Input/Output

CONTACT: J. Michael Kirksey, Chief Financial Officer, +1-281-879-3672,
of Input-Output, Inc., +1-281-879-3658; or Jack Lascar, Partner, or Karen
Roan, Vice President, both of DRG&E, +1-713-529-6600, for Input-Output, Inc.
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