SUPPLEMENTAL GUARANTORS CONSOLIDATING CONDENSED FINANCIAL INFORMATION

On February 14, 2007, the Company completed a private placement of 9.75% Senior Notes in the aggregate principal amount of $400.0 million. As of March 31, 2012, $275.0 million aggregate principal amount remains outstanding. The Company’s payment obligations under the 9.75% Senior Notes are jointly and severally guaranteed by certain of its 100% owned U.S. subsidiaries (“Guarantor Subsidiaries”). All subsidiaries of the Company that do not guaranty the 9.75% Senior Notes are referred to as Non-Guarantor Subsidiaries.

The consolidating condensed financial statements are presented below and should be read in connection with the Condensed Consolidated Financial Statements of the Company. Separate financial statements of the Guarantor Subsidiaries are not presented because (i) the Guarantor Subsidiaries are wholly-owned and have fully and unconditionally guaranteed the 9.75% Senior Notes on a joint and several basis, and (ii) the Company’s management has determined such separate financial statements are not material to investors.

The following consolidating condensed financial information presents the consolidating condensed balance sheets as of March 31, 2012 and December 31, 2011, and the consolidating condensed statements of operations, statements of comprehensive income and statements of cash flows for the three months ended March 31, 2012 and March 31, 2011 of (a) the Company; (b) the Guarantor Subsidiaries; (c) the Non-Guarantor Subsidiaries; (d) elimination entries; and (e) the Company, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on a consolidated basis.

Investments in subsidiaries are accounted for on the equity method. The principal elimination entries eliminate investments in subsidiaries, intercompany balances, intercompany transactions and intercompany sales.

CONSOLIDATING CONDENSED BALANCE SHEET

As of March 31, 2012

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
ASSETS
Cash and cash equivalents	$	—		$	56,410		$	7,005		$	—		$	63,415
Receivables
Trade, net	—			31,866			20,149			—			52,015
Notes and other, net	500			516			2,969			—			3,985
Due from Seitel Holdings, Inc.	—			865			—			—			865
Intercompany receivables (payables)	87,605			(70,166		)	(17,439		)	—			—
Investment in subsidiaries	289,335			425,383			1,440			(716,158		)	—
Net seismic data library	—			65,881			83,573			—			149,454
Net property and equipment	—			1,825			3,022			—			4,847
Investment in marketable securities	—			347			—			—			347
Prepaid expenses, deferred charges and other	4,017			5,379			888			—			10,284
Intangible assets, net	900			15,659			8,906			—			25,465
Goodwill	—			107,688			99,910			—			207,598
Deferred income taxes	—			56			—			—			56
TOTAL ASSETS	$	382,357		$	641,709		$	210,423		$	(716,158	)	$	518,331
LIABILITIES AND STOCKHOLDER’S EQUITY
Accounts payable and accrued liabilities	$	3,347		$	21,769		$	34,304		$	—		$	59,420
Income taxes payable	326			—			2,075			—			2,401
Senior Notes	275,000			—			—			—			275,000
Notes payable	79			—			—			—			79
Obligations under capital leases	—			—			3,176			—			3,176
Deferred revenue	—			30,936			17,639			—			48,575
Deferred income taxes	—			—			2,420			—			2,420
TOTAL LIABILITIES	278,752			52,705			59,614			—			391,071
STOCKHOLDER’S EQUITY
Common stock	—			—			—			—			—
Additional paid-in capital	398,084			—			—			—			398,084
Parent investment	—			764,752			156,913			(921,665		)	—
Retained deficit	(294,479		)	(176,095		)	(29,412		)	205,507			(294,479		)
Accumulated other comprehensive income	—			347			23,308			—			23,655
TOTAL STOCKHOLDER’S EQUITY	103,605			589,004			150,809			(716,158		)	127,260
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY	$	382,357		$	641,709		$	210,423		$	(716,158	)	$	518,331

CONSOLIDATING CONDENSED BALANCE SHEET

As of December 31, 2011

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
ASSETS
Cash and cash equivalents	$	—		$	61,612		$	13,282		$	—		$	74,894
Receivables
Trade, net	—			32,129			19,177			—			51,306
Notes and other, net	520			1,606			2,196			—			4,322
Due from Seitel Holdings, Inc.	—			861			—			—			861
Intercompany receivables (payables)	95,955			(78,614		)	(17,341		)	—			—
Investment in subsidiaries	272,268			416,322			1,448			(690,038		)	—
Net seismic data library	—			63,259			57,435			—			120,694
Net property and equipment	—			1,897			3,142			—			5,039
Investment in marketable securities	—			262			—			—			262
Prepaid expenses, deferred charges and other	4,409			5,078			757			—			10,244
Intangible assets, net	900			16,462			9,452			—			26,814
Goodwill	—			107,688			98,150			—			205,838
Deferred income taxes	—			56			—			—			56
TOTAL ASSETS	$	374,052		$	628,618		$	187,698		$	(690,038	)	$	500,330
LIABILITIES AND STOCKHOLDER’S EQUITY
Accounts payable and accrued liabilities	$	10,050		$	23,563		$	26,937		$	—		$	60,550
Income taxes payable	81			—			1,383			—			1,464
Senior Notes	275,000			—			—			—			275,000
Notes payable	95			—			—			—			95
Obligations under capital leases	—			—			3,161			—			3,161
Deferred revenue	—			33,340			15,505			—			48,845
Deferred income taxes	—			—			1,375			—			1,375
TOTAL LIABILITIES	285,226			56,903			48,361			—			390,490
STOCKHOLDER’S EQUITY
Common stock	—			—			—			—			—
Additional paid-in capital	398,011			—			—			—			398,011
Parent investment	—			764,752			156,913			(921,665		)	—
Retained deficit	(309,185		)	(193,299		)	(38,328		)	231,627			(309,185		)
Accumulated other comprehensive income	—			262			20,752			—			21,014
TOTAL STOCKHOLDER’S EQUITY	88,826			571,715			139,337			(690,038		)	109,840
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY	$	374,052		$	628,618		$	187,698		$	(690,038	)	$	500,330

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

For the Three Months Ended March 31, 2012

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
REVENUE	$	—		$	39,128		$	33,764		$	(345	)	$	72,547
EXPENSES:
Depreciation and amortization	—			20,848			18,536			—			39,384
Cost of sales	—			86			11			—			97
Selling, general and administrative	253			5,016			3,168			(345		)	8,092
	253			25,950			21,715			(345		)	47,573
INCOME (LOSS) FROM OPERATIONS	(253		)	13,178			12,049			—			24,974
Interest expense, net	(2,246		)	(4,710		)	(263		)	—			(7,219		)
Foreign currency exchange gains	—			—			411			—			411
Other income	1			80			—			—			81
Income (loss) before income taxes and equity in income of subsidiaries	(2,498		)	8,548			12,197			—			18,247
Provision for income taxes	—			260			3,281			—			3,541
Equity in income of subsidiaries	17,204			8,916			—			(26,120		)	—
NET INCOME	$	14,706		$	17,204		$	8,916		$	(26,120	)	$	14,706

CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME

For the Three Months Ended March 31, 2012

(In thousands)



	Parent		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Consolidating Eliminations			Consolidated Total
Net income	$	14,706	$	17,204	$	8,916	$	(26,120	)	$	14,706
Unrealized gain on securities held as available for sale, net of tax	—		85		—		—			85
Foreign currency translation adjustments	—		—		2,556		—			2,556
Comprehensive income	$	14,706	$	17,289	$	11,472	$	(26,120	)	$	17,347

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

For the Three Months Ended March 31, 2011

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
REVENUE	$	—		$	40,058		$	19,756		$	(318	)	$	59,496
EXPENSES:
Depreciation and amortization	—			25,552			16,862			—			42,414
Cost of sales	—			14			2			—			16
Selling, general and administrative	357			4,934			2,592			(318		)	7,565
	357			30,500			19,456			(318		)	49,995
INCOME (LOSS) FROM OPERATIONS	(357		)	9,558			300			—			9,501
Interest expense, net	(5,375		)	(4,714		)	(70		)	—			(10,159		)
Foreign currency exchange gains	—			3			229			—			232
Gain on sale of marketable securities	—			1,487			—			—			1,487
Other income	1			—			48			—			49
Income (loss) before income taxes and equity in income of subsidiaries	(5,731		)	6,334			507			—			1,110
Provision for income taxes	—			231			368			—			599
Equity in income of subsidiaries	6,242			139			—			(6,381		)	—
NET INCOME	$	511		$	6,242		$	139		$	(6,381	)	$	511

CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME

For the Three Months Ended March 31, 2011

(In thousands)



	Parent		Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Consolidating Eliminations			Consolidated Total
Net income	$	511	$	6,242		$	139	$	(6,381	)	$	511
Unrealized gain on securities held as available for sale, net of tax:
Unrealized net holding gain arising during the period	—		823			—		—			823
Less: Reclassification adjustment for realized gains included in earnings	—		(1,487		)	—		—			(1,487		)
Foreign currency translation adjustments	—		—			3,291		—			3,291
Comprehensive income	$	511	$	5,578		$	3,430	$	(6,381	)	$	3,138

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

For the Three Months Ended March 31, 2012

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations		Consolidated Total
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	(13,179	)	$	27,843		$	30,829		$	—	$	45,493
Cash flows from investing activities:
Cash invested in seismic data	—			(19,645		)	(36,775		)	—		(56,420		)
Cash paid to acquire property, equipment and other	—			(201		)	(49		)	—		(250		)
Advances to Seitel Holdings, Inc.	—			(4		)	—			—		(4		)
Net cash used in investing activities	—			(19,850		)	(36,824		)	—		(56,674		)
Cash flows from financing activities:
Principal payments on notes payable	(16		)	—			—			—		(16		)
Principal payments on capital lease obligations	—			—			(42		)	—		(42		)
Intercompany transfers	13,195			(13,195		)	—			—		—
Net cash provided by (used in) financing activities	13,179			(13,195		)	(42		)	—		(58		)
Effect of exchange rate changes	—			—			(240		)	—		(240		)
Net decrease in cash and cash equivalents	—			(5,202		)	(6,277		)	—		(11,479		)
Cash and cash equivalents at beginning of period	—			61,612			13,282			—		74,894
Cash and cash equivalents at end of period	$	—		$	56,410		$	7,005		$	—	$	63,415

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

For the Three Months Ended March 31, 2011

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations		Consolidated Total
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	(19,499	)	$	28,256		$	13,834		$	—	$	22,591
Cash flows from investing activities:
Cash invested in seismic data	—			(20,898		)	(25,198		)	—		(46,096		)
Cash paid to acquire property, equipment and other	—			(198		)	(41		)	—		(239		)
Net proceeds from sale of marketable securities	—			1,487			—			—		1,487
Cash from sale of property, equipment and other	—			34			1			—		35
Advances to Seitel Holdings, Inc.	—			(1		)	—			—		(1		)
Net cash used in investing activities	—			(19,576		)	(25,238		)	—		(44,814		)
Cash flows from financing activities:
Principal payments on notes payable	(14		)	—			—			—		(14		)
Principal payments on capital lease obligations	—			—			(40		)	—		(40		)
Borrowings on line of credit	—			—			737			—		737
Payments on line of credit	—			—			(737		)	—		(737		)
Intercompany transfers	19,513			(19,513		)	—			—		—
Net cash provided by (used in) financing activities	19,499			(19,513		)	(40		)	—		(54		)
Effect of exchange rate changes	—			—			(4		)	—		(4		)
Net decrease in cash and cash equivalents	—			(10,833		)	(11,448		)	—		(22,281		)
Cash and cash equivalents at beginning of period	—			75,068			14,903			—		89,971
Cash and cash equivalents at end of period	$	—		$	64,235		$	3,455		$	—	$	67,690