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HOUSTON, Nov. 27 /PRNewswire-FirstCall/ — ION Geophysical Corporation
(“ION”) (NYSE: IO), announced that holders of approximately 88%, or $52.76
million in principal amount, of its outstanding 5.50% Convertible Senior Notes
due 2008 (the “Notes”) have converted their Notes into ION Geophysical common
stock. Under the terms of the Notes, ION Geophysical issued approximately
12.2 million shares of its common stock in exchange for the Notes converted.
Approximately $7.24 million principal amount of the Notes remain outstanding.
ION Geophysical also paid to the converting noteholders approximately $1.3
million of interest accrued on the converted Notes. In addition, a
supplemental payment of approximately $2.9 million was made to the holders in
lieu of future interest payments, resulting in cost savings of approximately
$100,000 when compared to the interest payments due in 2008. This
supplemental payment will be charged to expense in the fourth quarter of 2007.
After giving effect to these transactions, the Company’s common shares
outstanding totaled approximately 93,573,967 shares, which exclude 758,679
shares of unvested stock held by employees.

“The conversion transaction removes a mature, significantly in-the-money
security from ION’s capital structure,” said R. Brian Hanson, Executive Vice
President and Chief Financial Officer of ION. “Additionally, we believe the
transaction will result in an economic benefit to the Company’s shareholders
through a significant reduction in the short position of its common stock and
a corresponding decrease in volatility.”

ION is a leading provider of geophysical technology, services, and
solutions for the global oil & gas industry. ION’s offerings allow E&P
operators to obtain higher resolution images of the subsurface to reduce the
risk of exploration and reservoir development, and enable seismic contractors
to acquire geophysical data more efficiently. Additional information about
ION 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 regarding estimated amounts of expected charges
to be taken in the fourth quarter of fiscal 2007 and interest savings
resulting from the transactions described above. Actual results may vary
fundamentally 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
competitors’ 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 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 Annual Report on
Form 10-K for the year ended December 31, 2006 and its Quarterly Report on
Form 10-Q for the quarter ended June 30, 2007.

CONTACTS: R. Brian Hanson
Chief Financial Officer
ION Geophysical (281) 879-3672

Jack Lascar / Karen Roan
DRG&E (713) 529-6600

SOURCE ION Geophysical Corporation

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