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HOUSTON–(BUSINESS WIRE)–Dec. 19, 2003–Input/Output Inc.
(NYSE:IO) announced today that Trace Energy Services, a privately held
seismic contractor based in Calgary, entered into an agreement to
purchase I/O’s VectorSeis(R) digital, full-wave sensors and a
cable-based System Four(TM) central recording platform. The
multi-million dollar agreement is a result of I/O’s previously
announced strategic technology alliance with Apache Corporation aimed
at accelerating the adoption of advanced seismic imaging technologies.

Apache has committed a sizeable acquisition program to Trace in
which I/O’s VectorSeis System Four land imaging system will be used
exclusively. The program focuses on Apache’s 2004 acquisition
initiatives for North America and involves commitments to acquire
seismic data on several hundred square kilometers of acreage. Delivery
of I/O equipment to Trace is underway and should be completed by the
end of the year.

Commenting on the announcement, John Geddes, President and CEO of
Trace Energy Services, said, “We are excited about our agreements with
Apache and I/O. This will build on Trace’s experience with I/O’s
VectorSeis technology, which we see as the most advanced and highly
efficient land imaging system in the industry. Demand for this
technology is rapidly growing among our clients, including Apache,
particularly in light of other successful VectorSeis seismic surveys
in Western Canada during the 2002-2003 season. We are pleased that
Apache has confidence in our ability to execute a significant
acquisition program on their behalf. Through their commitment to us,
we accelerated our decision to undertake this purchase and become the
largest provider of VectorSeis-based seismic acquisition services in
North America.”

Mike Bahorich, Executive Vice President of Exploration and
Production Technology at Apache, commented, “Having experienced
first-hand the benefits of I/O’s technology and Trace’s operational
expertise, Apache is confident that our collective relationship will
result in improved image quality in an important core area. This will
allow us to fine-tune our exploration, development and reservoir
management programs in Western Canada and deliver even more value to
Apache’s shareholders.”

Bob Peebler, CEO of I/O, added, “I/O is very pleased to reach this
important milestone in our technology alliance with Apache. We are
confident that Trace will efficiently acquire and deliver the highest
quality seismic data to Apache as well as other industry leaders who
embrace the benefits of digital, full-wave imaging. With the selection
of a seismic acquisition contractor now complete, I/O will focus on
other previously identified areas of seismic technology cooperation —
including applying I/O’s AZIM(TM) anisotropic imaging techniques to
further enhance the seismic data Apache acquires in the field.”

Apache Corporation is a leading independent oil and gas company
with core operations in the United States, Canada, Egypt, the United
Kingdom North Sea and Western Australia. Additional information about
Apache Corporation is available at www.apachecorp.com.

Trace Energy Services is a leading international seismic services
contractor that has land acquisition crews deployed in Western Canada,
the United States and Australia. Trace provides the most advanced
seismic acquisition technologies to its customers in order to ensure
optimal image quality, rapid cycle time, maximum operational
efficiency and safe and environmentally friendly field operations.
Trace is headquartered in Calgary and maintains offices in Houston,
Denver, Midland, Texas, Los Altos, Calif., and Perth, Australia.
Additional information about Trace Energy Services is available at
www.tracenergy.com.

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 www.i-o.com.

The information included herein contains 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. 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 risk factors that are disclosed
by I/O from time to time in its filings with the Securities and
Exchange Commission.

CONTACT: Apache Corporation, Houston

Bill Mintz, 713-296-7276

or

Trace Energy Services, Calgary

David Smiddy, 403-265-1696

or

Input/Output Inc., Houston

Elisa Smith, 281-879-3593

SOURCE: Input/Output Inc.