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HOUSTON, Apr 1, 2002 /PRNewswire-FirstCall via COMTEX/ —

Balance Sheet Restatement to Have No Impact on Earnings

Input/Output, Inc.
(NYSE: IO) today announced a non-cash balance sheet restatement associated with
the previously-reported sale/leaseback of its Stafford facilities completed in
August 2001. I/O will record the lease as a financing transaction rather than as
a sale/leaseback as previously reported in I/O’s Form 10-Q for the quarter ended
September 30, 2001. The restatement of the sale/leaseback transaction will have
no effect on I/O’s previously reported earnings for the third quarter of 2001
nor I/O’s results of operations over the life of the lease. The restatement will
result in I/O increasing both assets and liabilities by $17.0 million by
reporting its leased Stafford facilities as an asset classified as property,
plant and equipment and by reporting the discounted present value of its future
lease payments as a long-term obligation. Obligations relating to the
sale/leaseback transaction were disclosed in the third quarter report on Form
10Q, to which a copy of the lease was filed as an exhibit. The restatement also
has no impact on the future obligations under the lease, which were previously
disclosed. The Company will amend its quarterly report previously filed with the
SEC as soon as practicable.

“We are disappointed that this restatement has been required at such a late
point in time,” stated Timothy J. Probert, I/O’s Chief Executive Officer. “We
wish to stress that the restatement does not impact our cash position or
liquidity, nor does it change our results from operations or our future
obligations pursuant to the lease. The long-term fundamentals of our business
operations and business plan remain unchanged and positive.”

Input/Output, Inc. is an industry leader in seismic acquisition technology for
land, marine, transition zone exploration, production and reservoir monitoring.
The Company specializes in technology that creates value for the energy industry
in the areas of 2D, 3D, 4D and multi-component seismic data. Additional
information on Input/Output, Inc. is available on the Internet at www.i-o.com or
contact us at ir@i-o.com .

This press release contains various forward-looking statements and information
with respect to future results of operations, future business and operations and
certain other matters. These statements are based on management’s belief as well
as assumptions made by and information currently available to management.
Although the Company believes the expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such expectations will
prove to have been correct. Such statements are subject to certain risks,
uncertainties and assumptions including, among other matters, the risks
discussed in the Company’s reports filed under the Securities Exchange Act of
1934. Should one or more of these risks materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those
expected.

                     INPUT/OUTPUT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)

RESTATED REPORTED
SEPTEMBER 30, SEPTEMBER 30,
ASSETS 2001 2001
(UNAUDITED) (UNAUDITED)
Current assets:

Cash and cash equivalents $96,060 $96,060
Restricted cash 249 249
Accounts receivable, net 57,864 57,864
Current portion notes receivable, net 2,628 2,628
Inventories 76,066 76,066
Deferred income tax asset 12,785 12,785
Prepaid expenses 2,011 2,011
Total current assets 247,663 247,663
Long-term notes receivable 5,895 5,895
Deferred income tax asset 42,440 42,440
Property, plant and equipment, net 42,522 27,275
Goodwill, net 46,132 46,132
Other assets, net 7,661 5,893
Total assets $392,313 $375,298

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt $2,565 $1,750
Accounts payable 14,418 14,418
Accrued expenses 20,088 20,136
Total current liabilities 37,071 36,304
Long-term debt, net of current maturities 20,402 500
Other long-term liabilities 680 4,334

Stockholders’ equity:
Cumulative convertible preferred stock,
$0.01 par value; authorized 5,000,000
shares; issued and outstanding 55,000
shares at the end of both periods
(liquidation value of $55 million) 1 1
Common stock, $0.01 par value; authorized
100,000,000 shares; outstanding 51,322,067
shares and 50,936,420 shares, respectively 516 516
Additional paid-in capital 358,802 358,802
Accumulated deficit (16,354) (16,354)
Accumulated other comprehensive loss (5,928) (5,928)
Treasury stock, at cost, 281,398 shares
and 243,500 shares, respectively (2,162) (2,162)
Unamortized restricted stock compensation (715) (715)
Total stockholders’ equity 334,160 334,160
Total liabilities and stockholders’
equity $392,313 $375,298


SOURCE Input/Output, Inc.

CONTACT:          C. Robert Bunch, Chief Administrative Officer of Input-Output,
Inc., +1-281-933-3339