Texas Jury Finds That Input/Output (IO) Defrauded Its Largest Reservoir Division Customer - Paulsson Geophysical Services, Inc. LOS ANGELES, July 26 /PRNewswire/ -- On June 1, 2004, a Texas Jury sitting in Fort Bend County's 268th District Court found that Input/Output, Inc. (I/O), headquartered in Stafford, Texas, defrauded Paulsson Geophysical Services, Inc. (P/GSI), headquartered in Brea, California. The jury also found that I/O breached its contract and product warranties with P/GSI in conjunction with the sale of specialized seismic cables for borehole seismic systems. The Texas Jury awarded P/GSI no actual damages but punitive damages of $2 million for I/O's fraud. P/GSI was the largest customer for the Reservoir Division of I/O in 2002. Following a dispute involving manufacturing defects, I/O filed a preemptive strike lawsuit in Fort Bend against P/GSI in October 2002. P/GSI subsequently filed a countersuit against I/O including the fraud, breach of contract and breach of warranties. P/GSI is a privately held, technologically oriented oil industry service provider, leading the industry in providing high-resolution reservoir images using proprietary borehole seismic instruments to improve the recovery of oil and gas primarily in domestic oil and gas fields. P/GSI is also providing state-of-the-art multi-component data processing as well as prestack depth migration on data recorded. For more information contact Paulsson Geophysical Services, Inc. (P/GSI) on (562) 697-9711 x 101, via e-mail or visit our web site at http://www.paulsson.com/. Input/Output, Inc. is traded on the New York Stock Exchange (NYSE) under the trading symbol "IO." Input/Output's website is http://www.i-o.com/. DATASOURCE: Paulsson Geophysical Services, Inc. CONTACT: Paulsson Geophysical Services, Inc., +1-562-697-9711, ext., 101, Web site: http://www.i-o.com/ Web site: http://www.paulsson.com/

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