HOUSTON, March 31, 2003 - Seitel, Inc. (OTCBB: SEIE; TSE: OSL) today reported revenues for the year ended of December 31, 2002 of $149.8 million. This represents a 30% increase compared with revenues for the prior year of $115.2 million. For the fourth quarter ended December 31, 2002, revenue was $29.6 million, a 16% decline compared to $35.1 million of revenue in last year's fourth quarter.

For the year ended December 31, 2002, the Company reported a net loss of $212.4 million, or $8.40 per share, compared with a net loss of $15 million or $.58 per diluted share in the prior year. Results for 2002 include certain adjustments, charges and costs totaling $253.9 million composed of (i) $162.7 million of adjustments in the carrying value of and revisions to the estimated useful life of the Company's seismic data library; (ii) $28.5 million of costs and expenses related to the Company's restructuring efforts, various litigation, severance costs, the acceleration of certain lease obligations, allowances for doubtful accounts and certain other accruals; and (iii) $62.7 million of charges related to the Company's discontinued oil and gas operations. Results for 2001 included $39.1 million of charges consisting of $37.8 million related to the Company's discontinued operations and $1.3 million of certain legal and other costs related to a former executive.

For the quarter ended December 31, 2002, the Company reported a net loss of $118.4 million or $4.67 per share compared with a net loss of $3.4 million or $.13 per diluted share in the same quarter a year ago. Results for the fourth quarter of 2002 include certain adjustments, charges and costs totaling $126.6 million composed of (i) $111.6 million of adjustments in the carrying value and revisions to the estimated useful life of the Company's seismic data library; (ii) $12.5 million of costs and expenses related to the Company's restructuring efforts, various litigation, severance costs, the acceleration of certain lease obligations, allowances for doubtful accounts and certain other accruals; and (iii) $2.5 million of charges related to the Company's discontinued oil and gas operations. Results for the fourth quarter of 2001 loss included $11.6 million of charges related to the Company's discontinued oil and gas operations.

Larry Lenig, President and Chief Executive Officer of Seitel said, "Seitel faced a challenging period in 2002. Over the past ten months, much progress has been achieved and our fundamental business model of acquiring and licensing seismic data has gained momentum. This is underscored by the trend in cash licensing sales for the last three quarters and the award of a significant number of new data acquisition projects in the U.S. and in Canada. While the adjustments and charges reflected in the year and fourth quarter are substantial, we are optimistic about our core business. This confidence is founded on the dedication, hard work, enthusiasm and skill of Seitel's people and by commitments and reactions from our customers, vendors and our other business partners. We are grateful for their faith in Seitel's ability, and we are committed to reinvigorating the Company and to leveraging our seismic data libraries to deliver future growth and profitability."

Revenue for the fourth quarter and year periods consisted of the following (in thousands):

The increase in revenue in 2002 as compared with 2001 is due primarily to increased selections of data related to contracts on which revenue was initially deferred coupled with decreased deferrals in the most recent year compared with the prior period. The increased selections in 2002 reflects the high rate of deferrals in the preceding year, and the decrease in deferrals corresponds to a reduction in non-monetary exchanges completed during 2002 compared to 2001. Cash transactions in 2002 for data acquisition and for cash licensing sales declined by a total of $8.0 million compared to 2001. This decline was related to the first quarter of 2002 when cash licensing sales were $4.2 million and were lower than in any quarterly period since 1993. Cash licensing rebounded in the second, third and fourth quarters of 2002 to average approximately $20 million per quarter during those periods.

The decrease in revenue in the fourth quarter of 2002 was primarily due to a decline of $17.5 million in non-monetary exchanges completed in the 2002 period compared to the prior year's fourth quarter. In addition, acquisition revenue and cash licensing sales declined by a total of $2.9 million in the fourth quarter of 2002 compared with the same quarter of the prior year. The combined decrease in non-monetary exchanges, cash licensing sales and acquisition revenue was partially offset by an increase in revenue of $14.2 million related to lower deferrals in the 2002 period compared to a year ago.

Seitel markets its proprietary seismic information/technology to more than 400 petroleum companies, licensing data from its library and creating new seismic surveys under multi-client projects.

Certain statements contained in this release, including without limitation, statements containing the words "believes", "intends", "expects", "anticipates", and words of similar import, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such forward-looking statements are not guarantees of future performance, and since such statements involve risks and uncertainties, the actual results and performance of Seitel and the industry may turn out to be materially different from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Seitel also disclaims any obligation to update its view of any such risks or uncertainties or to publicly announce the result of any revisions to the forward-looking statements made in this release.

				Year Ended
				December 31,

				2002			2001

ASSETS
Cash and equivalents			$	21,517		$	25,223
Restricted cash				4,469			-
Receivables				48,908			60,305
Seismic data library, net				284,396			455,845
Property and equipment, net				19,789			11,927
Oil and gas operations held for sale				656			93,956
Investment in marketable securities				5			2,501
Deferred income taxes				11,322			-
Prepaid expenses, deferred charges and other				7,074			11,712

		TOTAL ASSETS	$	398,136		$	661,469


LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities			$	31,391		$	45,243
Income taxes payable				916			2,646
Oil and gas operations held for sale				94			3,962
Debt and capital leases				272,061			268,350
Financial guaranty				554			-
Deferred income taxes				-			351
Deferred revenue				56,084			97,330

TOTAL LIABILITIES				361,100			417,882


COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY

Common stock, par value $.01 per share; 25,811,601 and 25,810,603 shares
	issued and outstanding			258			258
Additional paid-in capital				166,630			166,456
Retained earnings (deficit)				(121,793	)		91,624
Treasury stock, at cost				(5,373	)		(9,072	)
Notes receivable from officers and employees for stock purchases				(1,178	)		(3,776	)
Accumulated other comprehensive loss				(1,508	)		(1,903	)

TOTAL STOCKHOLDERS' EQUITY				37,036			243,587


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	398,136		$	661,469

					Quarter Ended						Year Ended
					December 31,						December 31,

					2002			2001			2002			2001


REVENUE				$	29,576		$	35,126		$	149,795		$	115,238

EXPENSES:
		Depreciation and amortization			68,746			15,286			130,251			49,766
		Cost of sales			254			181			928			1,196
		Selling, general and administrative			22,206			8,597			71,851			34,885
		Impairment of seismic data library			57,268			-			82,964			-

					148,474			24,064			285,994			85,847


INCOME (LOSS) FROM OPERATIONS					(118,898	)		11,062			(136,199	)		29,391

Interest expense and other, net					(5,303	)		(3,649	)		(20,342	)		(13,063	)
Loss on sale of marketable securities					-			-			(332	)		-

Income (loss) from continuing operations before income
		taxes and cumulative effect of changes in
		accounting principles			(124,201	)		7,413			(156,873	)		16,328
Provision (benefit) for income taxes					(8,279	)		3,288			(18,304	)		6,748

Income (loss) from continuing operations before cumulative
	effect of changes in accounting principles				(115,922	)		4,125			(138,569	)		9,580
Discontinued operations:
	Loss from operations (including loss from disposal
	of $60,172 in 2002)				(2,508	)		(11,571	)		(62,709	)		(37,805	)
	Income tax benefit				-			(4,050	)		-			(13,232	)

	Loss from discontinued operations				(2,508	)		(7,521	)		(62,709	)		(24,573	)

Cumulative effect of changes in accounting principles,
		net of tax benefits of $5,994 and $8,859, in 2002
		and 2000, respectively			-			-			(11,162	)		-

NET LOSS				$	(118,430	)	$	(3,396	)	$	(212,440	)	$	(14,993	)


Earnings (loss) per share:
		Basic:
			Income (loss) from continuing operations	$	(4.57	)	$	.16		$	(5.48	)	$	.38
			Loss from discontinued operations		(.10	)		(.30	)		(2.48	)		(.98	)
			Cumulative effect of changes in accounting principles		-			-			(.44	)		-

			Net loss	$	(4.67	)	$	(.14	)	$	(8.40	)	$	(.60	)

		Diluted:
			Income (loss) from continuing operations	$	(4.57	)	$	.16		$	(5.48	)		.37
			Loss from discontinued operations		(.10	)		(.29	)		(2.48	)		(.95	)
			Cumulative effect of changes in accounting principles		-			-			(.44	)		-

			Net loss	$	(4.67	)	$	(.13	)	$	(8.40	)	$	(.58	)


Weighted average number of common and common
equivalent shares:
		Basic			25,376			25,055			25,300			24,986

		Diluted			25,376			25,292			25,300			25,692

			Three Months Ended						Year Ended
			December 31,						December 31,

			2002			2001			2002			2001

Acquisition revenue		$	4,590		$	5,439		$	23,549		$	25,778
Resale revenue
	Cash licensing sales		19,870			22,093			66,231			71,989
	Non-monetary exchanges		152			17,634			13,551			57,045
	Deferral of revenue		(11,977	)		(28,222	)		(38,366	)		(89,764	)
	Selections of data		15,655			17,670			81,982			48,114
	Solutions and Other		1,286			512			2,848			2,076

Total		$	29,576		$	35,126		$	149,795		$	115,238