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HOUSTON, Feb 27, 2002 /PRNewswire-FirstCall via COMTEX/ — Input/Output, Inc.,
(NYSE: IO) today revised its financial outlook for the quarter ending March 31,
2002.

The Company expects revenues for the first quarter of 2002 to be in the range of
$23-27 million, depending in part on the timing of the shipment of a large
international order. The Company reported revenues of $42.4 million for the
first quarter of 2001. Input/Output expects to report a net loss applicable to
common shareholders between ($0.09) and ($0.13), compared to ($0.02) in last
year’s first quarter. Actual first quarter results will be announced in the
first week of May, 2002.

“As we reported in our last conference call, seismic activity has slowed
considerably since year-end and, in fact, has eroded at a faster pace than
anticipated,” said Timothy J. Probert, CEO of Input/Output. “The continuing
weakness of oil and gas prices are resulting in reduced exploration
expenditures. While there are signs of a potential recovery in commodity prices,
our customers are generally deferring decisions on nonessential expenditures
until later in the year. The outlook for the balance of 2002 remains cloudy,
although we remain optimistic that recovering commodity prices will result in
significantly higher revenues and profits in the second half of this year. We
have reduced our total workforce by over 18% since the end of last year and will
look to further reduce our cost structure without reducing expenditures
necessary for our long-term growth prospects. We operate in a cyclical business
and have maintained a strong balance sheet in anticipation of an eventual
downturn. We currently have about $100 million in cash and less than $2 million
in interest-bearing indebtedness, and are well-poised to take advantage of
strategic opportunities that may arise,” concluded Probert.

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,
including management’s expectations regarding revenues and earnings per common
share for the quarter ended March 31, 2002 and for the year ended December 31,
2002 and trends in and levels of commodity prices. These statements are based on
management’s belief as well as assumptions made by and information currently
available to management. Although the Company believes that 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, continuation in trends for energy industry
demand for seismic services and products, the timing and development of the
Company’s products and services and market acceptance of the companies new and
revised product offerings, risks associated with competitors’ product offerings
and pricing pressures resulting therefrom, the Company’s inability to produce
products to preserve and increase market share, technological and marketplace
changes affecting the Company’s product line, risks associated with sales to
customers located outside the United States, loss of significant customers,
dependence on key technical and other personnel, payment defaults under sales
credit agreements with the Company’s customers, future performance from acquired
businesses and units falling below projected expectations, the success of future
acquisitions and strategic alliances by the Company, future energy industry
exploration conditions, and prices worldwide for oil and natural gas. Should one
or more of these risks materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those expected. For a
discussion of these risks, investors are urged to refer to the Company’s reports
filed under the Securities Exchange Act of 1934.

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SOURCE Input/Output, Inc.

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