HOUSTON, August 11, 2008 - Seitel, Inc., a leading provider of seismic data to the oil and gas industry, today reported results for the second quarter ended June 30, 2008. Revenue for the second quarter of $44.7 million increased $14.3 million or 47% over the second quarter of 2007, primarily driven by $10.2 million growth in total resales from our library, that reflected a $6.1 million increase in selections from library cards and $4.9 million higher cash resales. Acquisition revenue grew by $3.6 million or 41% mainly in the US. Solutions revenue was $0.5 million or 34% higher than in 2007.

Revenue for the six month period was $92.1 million as compared to $66.7 million in 2007. The 38% growth in revenue came from $14.8 million higher total library resales and a $9.7 million increase in acquisition revenue. Solutions revenue was $1.0 million higher than in 2007.

Cash resales for the quarter were $32.7 million, compared to $27.8 million for the second quarter of last year. The 18% growth in cash resales reflected 19% growth in our core resales, with particularly robust licensing activity in Canada. Our non-core US 2D and offshore cash resales increased by 5%. For the first half of 2008, cash resales of $52.5 million were $3.0 million or 6% higher than in the prior year.

For the second quarter of 2008, the net loss of $20.4 million improved as compared to last year's loss of $24.2 million. The 2008 period included approximately $24.6 million in costs related to purchase accounting adjustments to the value of assets and liabilities, mainly the step-up in value of the data library. The 2007 second quarter included approximately $26.9 million of purchase accounting adjustments. The year-on-year reduction in the net loss resulted from increased revenue, compensated by higher data amortization expense, lower currency gains, and higher income taxes. The second quarter of last year included $1.3 million more in currency gains from our Canadian operations and $2.0 million in net tax benefits, as compared to a $0.9 million tax expense in 2008. For the six month period, the net loss of $38.8 million was significantly lower than the $55.4 million for the equivalent period of 2007. The 2007 period included $18.7 million in merger expenses as compared to $0.4 million in 2008.

Cash EBITDA, defined as cash resales and solutions revenue less cash operating expenses, was $26.3 million for the second quarter of 2008, as compared to $22.2 million in the same quarter of 2007. This $4.2 million or 19% improvement was driven by a $5.4 million increase in cash revenue somewhat offset by a $1.2 million increase in cash operating expenses. The higher cash operating expenses were partly due to additional variable compensation of approximately $0.7 million, mainly sales commissions on the incremental revenue and higher accruals for employee incentive bonuses. In addition, the stronger Canadian dollar added $0.2 million to our operating expenses and the ramp up in activity, in particular data creation, has required the addition of resources.

For the first half of 2008, Cash EBITDA was $39.1 million as compared to $38.7 million in 2007, as a $4.0 million increase in cash revenue for the period was offset by a $3.5 million increase in cash operating expenses. The significant year on year growth in total revenue drove increases in compensation, including incremental resources to meet the higher activity levels, as well as higher sales commissions and employee performance bonuses. In addition, cash operating expenses in the first half of last year included $0.9 million in one-time recoveries from legal disputes.

"The second quarter confirmed the quality of the data we have added to the library over the past few years," commented Rob Monson, president and chief executive officer. "Our total cash resales grew by 18% year-on-year and set a new record for a second quarter, with both the US and Canada delivering vigorous growth. Year to date cash resales are 6% ahead of 2007.

"Oil and gas companies continued to invest heavily in North American production as evidenced by the continued increase in drilling rigs," stated Monson. "Exploration has also benefitted from our clients' efforts to replace their production, as demonstrated by the 45% year to date increase in our acquisition revenue. The current environment has allowed us to secure the addition to our library of significant amounts of attractive data that should result in even higher resales over the years to come."

The company reduced its operating losses to $9.5 million in the second quarter of 2008 as compared to $17.8 million in 2007, as a result of the higher revenue and stable SG&A. For the six month period, operating losses fell to $17.9 million from $41.1 million in 2007; last year included $18.7 million in merger expenses.

Depreciation and amortization expense for the second quarter of 2008 was $44.3 million compared to $37.8 million for the same period in 2007. For the second quarter of 2008, 20% of total resales were for fully amortized data, as compared to 16% for the first quarter. In 2007, substantially all revenue attracted amortization.

Selling, general and administrative expenses excluding merger expenses were $9.8 million for the second quarter of 2008 as compared to $9.5 million in the second quarter of last year. Increases in cash compensation were largely offset by a significant reduction in the amortization of option expenses related to employee incentives.

Net interest expense was $10.2 million for the second quarter, compared to $9.9 million for the first quarter of this year, and to $9.9 million for the second quarter of 2007.

Our cash balances at the end of the second quarter were $41.4 million. Cash generation during the second quarter was $4.2 million as our cash EBITDA was offset by higher working capital requirements and by net cash capital expenditures for the quarter of $7.9 million. Customer receivables for data library sales increased as a result of the high level of cash resales and capital expenditure liabilities from the robust creation activity in the first quarter were paid down. Cash balances on August 8, 2008 stood at $50.9 million.

Gross capital expenditures for the second quarter of 2008 were $22.5 million, as compared to $17.3 million for the prior year. Acquisition capital expenditures increased by $2.9 million as creation activity has ramped up in the US, while data purchases and trades grew by $1.9 million year-on-year.

For the six month period, gross capital expenditures increased to $59.4 million in 2008 from $39.2 million last year. Acquisition capital expenditures grew by $12.7 million or 41% with both Canada and the US contributing. Data purchases and trades were $7.1 million higher than last year. Net cash capex for the period was $20.3 million as compared to $15.8 million in 2007.

Our forecast net cash capital expenditures for the year 2008 are currently estimated to be approximately $48 million. Although our traded data should increase over our initial forecast, we now expect lower cash data purchases. In addition, we expect the cost per square mile of our net capital expenditures to end up lower than originally anticipated.

For the second quarter of 2008, we added approximately 400 square miles of seismic data to our library, reaching a cumulative 1,200 square miles for the first half of the year. We remain on target to increase the size of our onshore 3D library by approximately 10% or 3,000 square miles.

Seitel will hold its quarterly conference call to discuss second quarter results for 2008 on Tuesday, August 12, 2008 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). The dial-in number for the call is 866-578-5784, passcode Seitel. A replay of the call will be available until August 20, 2008 by dialing 888-286-8010, passcode 30832695, and will be available following the conference call at the Investor Relations section of the company's website at http://www.seitel-inc.com.

Seitel is a leading provider of seismic data to the oil and gas industry in North America. Seitel's data products and services are critical for the exploration for, and development and management of, oil and gas reserves by oil and gas companies. Seitel has ownership in an extensive library of proprietary onshore and offshore seismic data that it has accumulated since 1982 and that it licenses to a wide range of oil and gas companies. Seitel believes that its library of onshore seismic data is one of the largest available for licensing in the United States and Canada. Seitel's seismic data library includes both onshore and offshore 3D and 2D data. Seitel has ownership in over 40,000 square miles of 3D and approximately 1.1 million linear miles of 2D seismic data concentrated in the major active North American oil and gas producing regions. Seitel serves a market which includes over 1,600 companies in the oil and gas industry.

The Press Release contains "forward-looking statements" within the meaning of the federal securities laws, which involve risks and uncertainties. Forward-looking statements include all statements that do not relate solely to historical or current facts, and you can identify forward-looking statements because they contain words such as "believes," "expects," "may," "will," "should," "seeks," "approximately," "intends," "plans," "estimates," "projects," or "anticipates" or similar expressions that concern the strategy, plans or intentions of the Company. These forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, actual results may differ materially from management expectations reflected in our forward-looking statements. These risks and uncertainties are described in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, a copy of which may be obtained form the Company without charge. Management undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

The press release also includes certain non-GAAP financial measurers as defined under the SEC rules. Non-GAAP financial measures include cash resales, for which the most comparable GAAP measure is total revenue, and also include cash EBITDA or cash margin, for which the most comparable GAAP measure is operating income.

		(Unaudited)
		June 30,			December 31,
		2008			2007

ASSETS
Cash and cash equivalents	$	41,320		$	43,333
Restricted cash		111			110
Receivables
Trade, net		41,957			51,915
Notes and other, net		861			2,190
Net seismic data library		319,770			349,039
Net property and equipment		9,967			10,996
Investment in marketable securities		4,609			4,224
Prepaid expenses, deferred charges and other		21,720			22,263
Intangible assets, net		48,110			51,785
Goodwill		204,245			207,246

TOTAL ASSETS	$	692,670		$	743,101

LIABILITIES AND STOCKHOLDER'S EQUITY
LIABILITIES
Accounts payable and accrued liabilities	$	47,052		$	49,325
Income taxes payable		1,721			948
Debt
Senior Notes		402,291			402,333
Notes payable		279			300
Obligations under capital leases		3,669			3,848
Deferred revenue		45,625			48,151
Deferred income taxes		11,997			17,238
TOTAL LIABILITIES		512,634			522,143

COMMITMENTS AND CONTINGENCIES

STOCKHOLDER'S EQUITY
Common stock, par value $.001 per share; 100 shares authorized,
issued and outstanding at June 30, 2008 and
December 31, 2007		-			-
Additional paid-in capital		268,184			264,805
Retained deficit		(115,948	)		(77,113	)
Accumulated other comprehensive income		27,800			33,266
TOTAL STOCKHOLDER'S EQUITY		180,036			220,958

TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$	692,670		$	743,101

		Three Months Ended
		June 30,
		2008			2007

REVENUE	$	44,719		$	30,371

EXPENSES:
Depreciation and amortization		44,259			37,770
Cost of sales		165			32
Selling, general and administrative		9,813			9,489
Merger		-			835
		54,237			48,126

LOSS FROM OPERATIONS		(9,518	)		(17,755	)

Interest expense, net		(10,179	)		(9,938	)
Foreign currency exchange gains		133			1,478
Other income		39			-

Loss before income taxes		(19,525	)		(26,215	)
Provision (benefit) for income taxes		884			(1,970	)

NET LOSS	$	(20,409	)	$	(24,245	)

		SUCCESSOR						PREDECESSOR
		PERIOD						PERIOD
		Six Months Ended			February 14, 2007 -			January 1, 2007 -
		June 30, 2008			June 30, 2007			February 13, 2007

REVENUE	$	92,101		$	47,669		$	19,010

EXPENSES:
Depreciation and amortization		89,114			60,003			11,485
Cost of sales		279			41			8
Selling, general and administrative		20,248			13,923			3,577
Merger		357			1,280			17,457
		109,998			75,247			32,527

LOSS FROM OPERATIONS		(17,897	)		(27,578	)		(13,517	)

Interest expense, net		(20,074	)		(19,123	)		(2,284	)
Foreign currency exchange gains (losses)		(713	)		1,657			(102	)
Other income		39			-			12

Loss before income taxes		(38,645	)		(45,044	)		(15,891	)
Provision (benefit) for income taxes		190			(5,967	)		452

NET LOSS	$	(38,835	)	$	(39,077	)	$	(16,343	)

The following table summarizes the components of our revenue for the periods indicated (in thousands):

		SUCCESSOR												SUCCESSOR		PREDECESSOR
		PERIOD									COMBINED ⁽¹⁾			PERIOD		PERIOD
		Three Months						Six Months			Six Months			February 14,		January 1,
		Ended						Ended			Ended			2007 -		2007 -
		June 30,						June 30,			June 30,			June 30,		February 13,
		2008			2007			2008			2007			2007		2007

Acquisition revenue:
Cash underwriting	$	10,646		$	8,897		$	25,327		$	21,256		$	15,169		6,087
Underwriting from
non-monetary
exchanges		1,900			12			5,622			38			27		11
Total acquisition
revenue		12,546			8,909			30,949			21,294			15,196		6,098
Licensing revenue:
Cash resales		32,670			27,794			52,505			49,506			43,521		5,985
Non-monetary
exchanges		798			1,176			4,457			2,731			2,738		(7	)
Revenue deferred		(13,922	)		(13,577	)		(25,063	)		(23,954	)		(21,318	)	(2,636	)
Recognition of revenue
previously deferred		10,651			4,598			25,609			14,459			5,513		8,946
Total resale revenue		30,197			19,991			57,508			42,742			30,454		12,288
Total seismic revenue		42,743			28,900			88,457			64,036			45,650		18,386
Solutions and other		1,976			1,471			3,644			2,643			2,019		624
Total revenue	$	44,719		$	30,371		$	92,101		$	66,679		$	47,669		19,010

Cash Margin: Cash margin includes cash resales plus all other cash revenues other than from data acquisitions, less cash selling, general and administrative expenses (excluding Merger expenses and merger and acquisition transaction costs) and cost of goods sold. We believe this measure is helpful in determining the level of cash from operations we have available for debt service and funding of capital expenditures (net of the portion funded or underwritten by our customers). The following is a quantitative reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure, operating loss (in thousands):

		SUCCESSOR												SUCCESSOR			PREDECESSOR
		PERIOD									COMBINED ⁽¹⁾			PERIOD			PERIOD
		Three Months						Six Months			Six Months			February 14,			January 1,
		Ended						Ended			Ended			2007 -			2007 -
		June 30,						June 30,			June 30,			June 30,			February 13,
		2008			2007			2008			2007			2007			2007

Cash margin	$	26,335		$	22,179		$	39,103		$	38,650		$	35,220		$	3,430
Add (subtract) other
revenue components
not included in
cash margin:
Acquisition revenue		12,546			8,909			30,949			21,294			15,196			6,098
Non-monetary
exchanges		798			1,176			4,457			2,731			2,738			(7	)
Revenue deferred		(13,922	)		(13,577	)		(25,063	)		(23,954	)		(21,318	)		(2,636	)
Recognition of
revenue previously
deferred		10,651			4,598			25,609			14,459			5,513			8,946
Recognition of
Solutions revenue
previously deferred		-			-			44			6			-			6

Less:
Depreciation and
amortization		(44,259	)		(37,770	)		(89,114	)		(71,488	)		(60,003	)		(11,485	)
Merger expenses		-			(835	)		(357	)		(18,737	)		(1,280	)		(17,457	)
Merger and acquisition
transaction costs		(4	)		-			(5	)		-			-			-
Non-cash operating
expenses		(1,663	)		(2,435	)		(3,520	)		(4,056	)		(3,644	)		(412	)
Operating loss,
as reported	$	(9,518	)	$	(17,755	)	$	(17,897	)	$	(41,095	)	$	(27,578	)	$	(13,517	)

		SUCCESSOR								SUCCESSOR		PREDECESSOR
		PERIOD						COMBINED ⁽¹⁾		PERIOD		PERIOD
		Three Months				Six Months		Six Months		February 14,		January 1,
		Ended				Ended		Ended		2007 -		2007 -
		June 30,				June 30,		June 30,		June 30,		February 13,
		2008		2007		2008		2007		2007		2007

Cash SG&A expenses	$	8,150	$	7,054	$	16,728	$	13,444	$	10,279	$	3,165
Non-cash compensation
expense		1,592		2,369		3,378		3,959		3,547		412
Non-cash rent expense		71		66		142		97		97		-
Total	$	9,813	$	9,489	$	20,248	$	17,500	$	13,923	$	3,577

		SUCCESSOR												SUCCESSOR			PREDECESSOR
		PERIOD									COMBINED ⁽¹⁾			PERIOD			PERIOD
		Three Months						Six Months			Six Months			February 14,			January 1,
		Ended						Ended			Ended			2007 -			2007 -
		June 30,						June 30,			June 30,			June 30,			February 13,
		2008			2007			2008			2007			2007			2007

New data acquisition	$	17,349		$	14,428		$	43,880		$	31,142		$	23,176		$	7,966
Cash purchases of
seismic data and
other		702			2,140			1,241			5,706			5,180			526
Non-monetary
exchanges		3,972			600			13,741			2,155			2,162			(7	)
Other property and
equipment		454			108			503			194			134			60
Total capital
expenditures		22,477			17,276			59,365			39,197			30,652			8,545
Less: Non-monetary
exchanges		(3,972	)		(600	)		(13,741	)		(2,155	)		(2,162	)		7
Cash underwriting		(10,646	)		(8,897	)		(25,327	)		(21,256	)		(15,169	)		(6,087	)
Net cash capital
expenditures,
as reported	$	7,859		$	7,779		$	20,297		$	15,786		$	13,321		$	2,465

FOR IMMEDIATE RELEASE