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Revenues increase 26% quarter over quarter

Earnings per diluted share nearly doubles to $0.27, excluding special items

EBITDA nearly doubles for both the third quarter and year-to-date 2008

HOUSTON, Nov. 4 /PRNewswire-FirstCall/ — ION Geophysical Corporation
(NYSE: IO) today announced third quarter 2008 net income of $24.9 million, or
$0.25 per diluted share, on revenues of $218.5 million compared to net income
of $12.6 million, or $0.14 per diluted share, on revenues of $173.6 million
for the same period a year ago. Third quarter earnings included several
special items totaling approximately $2.6 million, of which $1.2 million, or
approximately $0.01 per diluted share, related to the quarterly fair value
adjustment of the Company’s preferred stock redemption features and $0.9
million, or approximately $0.01 per diluted share, related to charges incurred
as part of the acquisition of ARAM Systems and Canadian Seismic Rentals
(“ARAM”) in the latter part of the third quarter. The remaining $0.5 million
special item was due to the impact of Hurricane Ike, which directly hit the
Houston area in September and caused extensive power outages and other
infrastructural damage across the region. Excluding the impact of these
special items, the Company reported third quarter earnings of $0.27 per
diluted share on revenues of $218.5 million for 2008.

Bob Peebler, President and Chief Executive Officer of ION, stated, “We are
very pleased with our record third quarter revenues and improved
profitability. We had another excellent quarter in our Marine Imaging Systems
division driven by strong sales of positioning systems and DigiFIN(TM)
streamer technology and the delivery of most of the remaining portion of the
fifth VectorSeis(R) Ocean (VSO) system to RXT.

“We are also delighted by the continued record performance of our ION
Solutions group, including our new venture sales related to the Company’s
programs off the coasts of Alaska, South America and West Africa and continued
strength in data processing.

“In our land division, gross margins continue to improve, driven by
reductions in cable system and vibroseis vehicle costs and higher margins from
ARAM system sales. We continue to be on track for FireFly(R)
commercialization later this year with most of the emphasis now on
international markets, due to working capital issues affecting North American
customers.

“We realize that, along with the rest of the industry, we will likely be
affected by the current turbulence in the financial markets, resulting in the
ensuing slowdown of the economy and the decline in commodity prices. We
believe that our strategy of building competitive advantage through our
technology by investing $164.0 million over the last five years in technology
R&D will serve us well during this period as oil companies look for
significant productivity improvements to offset lower commodity prices. We
believe our industry is in a short-term down cycle that will likely last
through 2009 and could extend into 2010, but we put that in context of a
longer term trend of growing demand for oil and gas. This longer-term trend
will continue to put pressure on oil companies to increase reserves through
exploration and enhanced oil recovery. Geophysical technologies that provide
enhanced efficiency and productivity, whether in reducing dry holes drilled,
improving field operations or making older reservoirs more productive, will be
more valuable now that oil and service companies will be challenged to find
ways to improve profitability.”

THIRD QUARTER 2008

Total revenues in the third quarter increased 26% to $218.5 million
compared to $173.6 million a year ago. The increased revenues were the results
of strong sales in all of the Company’s segments, including Marine Imaging
Systems, Land Imaging Systems and ION Solutions.

The ION Systems group generated sales of $141.0 million, increasing 11%
compared to the same period in 2007. Marine Imaging Systems revenues
increased 32% to $49.0 million compared to $37.1 million a year ago, as demand
for the Company’s DigiFIN(TM) streamer positioning and seabed products
remained strong. Additionally, a portion of the fifth VSO acquisition system
was delivered in the third quarter, which continues to demonstrate the success
and acceptance of VSO technology. Land Imaging Systems’ revenues increased to
$81.6 million compared to $79.1 million in the third quarter of 2007. The
third quarter of 2007 included the delivery of five systems to Oil and Natural
Gas Corporation Ltd. (ONGC) for $22.8 million. In the third quarter of 2008,
Land Imaging Systems continued to have strong vibroseis truck sales. The
third quarter financial results include ARAM’s operating results for the last
12 days of the quarter. Data Management Solutions’ revenues were essentially
flat at $10.4 million for the third quarter compared to $10.9 million a year
ago.

The ION Solutions group had another record quarter, generating $77.5
million in revenues compared to $46.5 million in the same period a year ago.
The 67% increase was primarily driven by robust new venture program sales off
the coasts of Alaska, East Africa and South America, combined with strong data
library revenues in the African region.

Consolidated gross margin for the third quarter of 2008 improved to 33%
from 30% in the third quarter of 2007, primarily due to improvements in the
Land Imaging Systems and Data Management Solutions segments. Overall, ION
Systems continued to see notable margin improvements in Scorpion(R) cable
systems, vibroseis vehicle sales and the addition of higher margin ARAM land
systems. ION Solutions experienced a slight deterioration in margin rates,
driven by product mix when compared to 2007.

Operating expenses as a percent of revenues for the third quarter of 2008
dropped to 19% compared to 21% in the prior year period. General and
administrative expenses as a percentage of revenues remained stable for the
third quarter of 2008 at approximately 7%.

Income from operations in the third quarter increased over 85% to $31.6
million compared to $16.9 million in the third quarter of 2007. Adjusted
EBITDA (earnings before net interest expense, taxes, depreciation and
amortization and the fair value adjustment of preferred stock redemption
features) for the third quarter doubled to $69.6 million compared to $34.3
million in the third quarter of 2007. A reconciliation of Adjusted EBITDA to
reported earnings can be found at the end of this press release.

YEAR-TO-DATE 2008

Consolidated revenues for the first nine months of 2008 increased 7% to
$539.4 million compared to $503.8 million for the same period in 2007. The
revenues in 2008 included strong DigiFIN sales, new venture and multi-client
data library sales and the delivery of the majority of the fifth VSO system.
Gross margin for the first nine months of 2008 improved substantially to 33%
compared to 27% for 2007. Strong margin improvements were realized across the
majority of the segments, with the largest improvements occurring in the ION
Solutions and Land Imaging segments.

Operating expenses as a percentage of revenues for year-to-date 2008 and
2007 were stable at approximately 21%. These expenses mainly relate to
salaries associated with increased headcount, increased bonus expense related
to continued strong performance and legal and accounting professional fees
related to the Company’s international expansion initiatives. Research and
development expenses for the period were approximately 7% of revenue,
consistent with the prior year. The Company’s effective tax rate year-to-date
was 15.5% for 2008 compared to 16.0% for 2007.

Income from operations for year-to-date 2008 totaled $61.6 million, an
increase of 80% over 2007. For the first nine months of 2008, the Company
reported net income of $48.0 million, or $0.49 per diluted share, compared to
net income of $22.8 million, or $0.26 per diluted share, in 2007. Adjusted
EBITDA for the period was $145.4 million compared to $75.9 million in 2007.

ACQUISITION OF ARAM

On September 18, 2008, the Company completed the acquisition of all of the
outstanding shares of ARAM Systems and Canadian Seismic Rentals (“ARAM”).
Founded in 1971, ARAM designs, manufactures, sells and leases land seismic
data acquisition systems, specializing in analog cabled systems. As a result
of the acquisition, the operations of ARAM are combined with the Company’s
operations commencing as of September 19, 2008 through the end of the quarter.
Due to consolidating ARAM with the Company’s Land Imaging Systems group, the
Company will not be reporting separate ARAM results in the future.

OUTLOOK

The following statements are based on the Company’s 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, “While we normally anticipate the final quarter to be the strongest
of the year, the current economic environment has made the visibility into the
market and economy difficult. Based on our year-to-date results and our
current pipeline of business, we expect 2008 consolidated revenues to range
between $780 and $830 million and earnings to be between $0.70 and $0.80 per
diluted share. This outlook assumes that we will not likely see the normal
high level of year-end spending due to both oil and gas companies and our
contractor customers taking a more conservative approach going forward. We
will hold a 2009 guidance call in late December upon the completion of our
2009 plan.”

CONFERENCE CALL

The Company has scheduled a conference call for Wednesday, November 5,
2008, at 10:00 a.m. Eastern Time. To participate in the conference call, dial
303-242-0003 at least 10 minutes before the call begins and ask for the ION
conference call. A replay of the call will be available approximately two
hours after the live broadcast ends and will be accessible until November 19,
2008. To access the replay, dial 303-590-3000 and use pass code 11121267#.

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.iongeo.com. Also, an archive of the web cast will be available
shortly after the call on the Company’s website.

About ION

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 http://www.iongeo.com.

     CONTACTS:
     R. Brian Hanson
     Chief Financial Officer
     +1.281.879.3672

     Jack Lascar
     DRG&E
     +1.713.529.6600

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 2008, and estimated gross margins, Adjusted
EBITDA and operating expenses as a percentage of revenue for fiscal 2008,
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 the economic downturn and the
volatile credit environment; risks associated with the integration of ARAM’s
business; risks associated with the Company’s level of indebtedness; 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 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, 2007.

                               Tables to follow



                 ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                    (In thousands, except per share data)
                                 (Unaudited)

                                    Three Months Ended    Nine Months Ended
                                       September 30,        September 30,
                                      2008      2007        2008     2007

    Product revenues                $140,332  $126,246    $337,726  $385,587
    Service revenues                  78,197    47,306     201,627   118,166
      Total net revenues             218,529   173,552     539,353   503,753

    Cost of products                  92,347    89,407     224,601   278,924
    Cost of services                  53,561    31,498     135,716    86,810
      Gross profit                    72,621    52,647     179,036   138,019

    Operating expenses:
      Research, development
       and engineering                13,498    12,449      37,507    37,530
      Marketing and sales             12,062    10,906      35,440    31,151
      General and administrative      15,487    12,428      44,484    35,024
        Total operating expenses      41,047    35,783     117,431   103,705
    Income from operations            31,574    16,864      61,605    34,314
    Interest expense                  (1,592)   (1,764)     (2,731)   (5,017)
    Interest income                       40       273       1,117     1,412
    Other income (expense)               743      (823)      1,075    (1,470)
    Fair value adjustment of
     preferred stock redemption
     features                         (1,147)        -        (974)        -
      Income before income taxes      29,618    14,550      60,092    29,239
    Income tax expense                 3,760     1,322       9,343     4,671
      Net income                      25,858    13,228      50,749    24,568
    Preferred stock dividends
     and accretion                       925       589       2,743     1,780
      Net income applicable to
       common shares                 $24,933   $12,639     $48,006   $22,788

    Earnings per share:
      Basic net income share           $0.26     $0.16       $0.51     $0.28
      Diluted net income share         $0.25     $0.14       $0.49     $0.26

    Weighted average number
     of common shares
     outstanding:
      Basic                           95,823    81,047      94,676    80,607
      Diluted                        102,653    97,780     102,127    97,426



                 ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                                (In thousands)
                                 (Unaudited)

                                                 September 30,   December 31,
                                                     2008           2007
                     ASSETS

    Current assets:
      Cash and cash equivalents                     $32,189       $36,409
      Restricted cash                                 5,344         7,052
      Accounts receivable, net                      180,026       188,029
      Notes receivable, net                          25,473         5,454
      Unbilled receivables                           65,578        22,388
      Inventories                                   254,803       128,961
      Prepaid expenses and other
       current assets                                25,523        12,717
        Total current assets                        588,936       401,010
    Notes receivable                                  6,753             -
    Non-current deferred income tax asset             3,351         2,872
    Property, plant and equipment, net               63,961        36,951
    Multi-client data library, net                   83,004        59,689
    Investments at cost                               4,954         4,954
    Goodwill                                        306,041       153,145
    Intangible and other assets, net                170,749        50,528
        Total assets                             $1,227,749      $709,149

       LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
      Notes payable and current
       maturities of long-term debt                $190,534       $14,871
      Accounts payable                               86,599        44,674
      Accrued expenses                               74,629        66,911
      Accrued multi-client data
       library royalties                             30,586        29,962
      Deferred revenue                               12,037        21,278
      Deferred income tax liability                   5,165         2,792
        Total current liabilities                   399,550       180,488
    Long-term debt, net of current
     maturities                                     124,316         9,842
    Non-current deferred income tax
     liability                                       37,505         3,384
    Other long-term liabilities                       4,115         4,195
    Fair value of preferred stock
     redemption features                              2,188             -
        Total liabilities                           567,674       197,909

    Cumulative convertible
     preferred stock                                 68,785        35,000

    Stockholders' equity:
      Common stock                                      994           948
      Additional paid-in capital                    624,924       559,255
      Accumulated deficit                           (34,833)      (82,839)
      Accumulated other
       comprehensive income                           6,766         5,460
      Treasury stock                                 (6,561)       (6,584)
        Total stockholders' equity                  591,290       476,240
        Total liabilities and
         stockholders' equity                    $1,227,749      $709,149



                 ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES
                        SUMMARY OF SEGMENT INFORMATION
                                (In thousands)
                                 (Unaudited)

                                   Three Months Ended     Nine Months Ended
                                      September 30,         September 30,
                                     2008       2007       2008       2007
    Net revenues:
      Land Imaging Systems         $81,562    $79,055    $177,270   $242,804
      Marine Imaging Systems        49,016     37,099     133,872    116,925
      Data Management Solutions     10,408     10,917      29,170     28,097
        Total ION Systems          140,986    127,071     340,312    387,826
      ION Solutions                 77,543     46,481     199,041    115,927
      Total                       $218,529   $173,552    $539,353   $503,753

    Income (loss) from
     operations:
      Land Imaging Systems         $11,216     $5,663     $15,831    $16,681
      Marine Imaging Systems        14,063      9,912      35,245     32,077
      Data Management
       Solutions                     6,820      5,948      17,496     12,686
        Total ION Systems           32,099     21,523      68,572     61,444
      ION Solutions                 14,019      7,443      36,316      7,432
      Corporate                    (14,544)   (12,102)    (43,283)   (34,562)
      Total                        $31,574    $16,864     $61,605    $34,314



               Reconciliation of Adjusted EBITDA to Net Income
                             (Non-GAAP Measures)
                                (In thousands)
                                 (Unaudited)

    Adjusted EBITDA is a Non-GAAP measurement that is presented as an
    additional indicator of operating performance and is not a substitute for
    net income or net income per share calculated under generally accepted
    accounting principals (GAAP).  We believe that Adjusted EBITDA provides
    useful information to investors because it is an indicator of the strength
    and performance of our ongoing business operations, including our ability
    to service our debt.  The calculation of Adjusted EBITDA shown below is
    based upon amounts derived from the company's financial statements
    prepared in conformity with GAAP.

                                  Three Months Ended       Nine Months Ended
                                     September 30,           September 30,
                                    2008      2007          2008       2007

    Net income applicable to
     common shares                $24,933   $12,639       $48,006    $22,788
    Interest expense                1,592     1,764         2,731      5,017
    Interest income                   (40)     (273)       (1,117)    (1,412)
    Income tax expense              3,760     1,322         9,343      4,671
    Depreciation and
     amortization expense          38,250    18,885        85,423     44,835
    Fair value adjustment
     of preferred stock
     redemption features            1,147         -           974          -
    Adjusted EBITDA               $69,642   $34,337      $145,360    $75,899


  Reconciliation of Special Items Adjustments to Diluted Earnings Per Share
                             (Non-GAAP Measures)
                    (In thousands, except per share data)
                                 (Unaudited)

                    Three Months Ended September 30, 2008
                                                                       Amount
    Fair value adjustment of preferred stock redemption features       $1,147
    ARAM acquisition-related items                                        920
    Hurricane Ike charges                                                 525
    Total                                                              $2,592

    Diluted EPS                                                         $0.25
    Impact of special items                                             $0.02
    Diluted EPS, excluding special items                                $0.27

    Weighted Average number of diluted common shares outstanding      102,653

SOURCE ION Geophysical Corporation

CONTACT: R. Brian Hanson, Chief Financial Officer of ION Geophysical
Corporation, +1-281-879-3672; or Jack Lascar of DRG&E, +1-713-529-6600, for
ION Geophysical Corporation
/Web site: http://www.iongeo.com
(IO)