3-D Geophysical Inc. Announces Record Revenues for Three Months and Nine Months Ended September 30, 1997.

LITTLETON, Colo.--(BUSINESS WIRE)--Nov. 4, 1997--3-D Geophysical Inc. (NASDAQ:TDGO) today announced results of operations for the three and nine months ended September 30, 1997.

The Company's net revenues increased to $26.5 million for the three months ended September 30, 1997 from $16.6 million for the three months ended September 30, 1996. Net income increased to $1.5 million for the three months ended September 30, 1997 from $1.3 million for the three months ended September 30, 1996.

Primary earnings per share, which includes common stock equivalents and is calculated using the treasury stock method, was $0.13 for the three months ended September 30, 1997 compared to $0.17 for the three months ended September 30, 1996. Weighted average common shares outstanding increased 55% to 12.0 million for the three months ended September 30, 1997 from 7.7 million for the three months ended September 30, 1996.

Cash flow (cash flow equals net income plus depreciation and amortization) increased to $4.2 million for the three months ended September 30, 1997 from $2.4 million for the three months ended September 30, 1996. Cash flow per share increased to $0.35 for the three months ended September 30, 1997 from $0.32 for the three months ended September 30, 1996.

The Company attributed the increase in net revenues in the third quarter of 1997 from the corresponding period in 1996 to the inclusion of $2.7 million in revenues for the Company's operations in Canada which were acquired in January 1997, higher revenues of $4.7 million in the U.S. due primarily to increased activity in Alaska and Texas, increased revenues in Peru of $1.3 million and higher Mexican revenues of $1.2 million.

Gross profit as a percent of net revenues (gross profit equals net revenues minus cost of data acquisition) was 26.7% for the three months ended September 30, 1997 compared to 27.1% for the three months ended September 30, 1996 and 8.1% for the three months ended June 30, 1997.

The decline in percent gross profit compared to the same period of the prior year was primarily due to lower margins in Mexico as the Company continues to be negatively impacted by permitting problems on a Mexican project. Compared to the three months ending June 30, 1997, percent gross profit increased in all operating areas in the third quarter of 1997.

For the nine months ended September 30, 1997, the Company's net revenues increased to $69.6 million from $36.2 million for the nine months ended September 30, 1996. For the nine months ended September 30, 1997, the Company recorded a net loss of ($0.1) million or ($0.01) per share compared to net income after extraordinary items of $2.1 million or $0.30 per share for the nine months ended September 30, 1996.

Cash flow increased to $7.2 million for the nine months ended September 30, 1997 from $4.9 million for the nine months ended September 30, 1996. Cash flow per share declined to $0.60 for the nine months ended September 30, 1997 from $0.70 for the nine months ended September 30, 1996.

At October 31, 1997, the Company's backlog was approximately $88 million, including approximately $64 million that is expected to be completed in the next twelve months; however, these commitments are subject to cancellation at the option of the Company's customers, on short notice and without penalty.

Of this backlog expected to be completed during the next twelve months, $22 million related to services to be performed in Alaska, $18 million related to the U.S. (other than Alaska), $11 million to Mexico, $7 million to Canada and $6 million to Peru.

As previously disclosed, to complete the above backlog, the Company will require additional working capital financing and financing to fund capital expenditures. This is primarily due to the significant up front expenses related to the start up of crews and projects in Latin America.

The Company currently has four crews operating in Latin America; three in Mexico and one in Peru. The Company has signed a commitment letter with a lending institution and expects to sign a credit agreement by the end of November. An inability to secure additional financing would have an adverse effect on the Company.

The Company has also entered into operating lease agreements to lease approximately 6,000 channels of Input/Output equipment for two years and 3,000 channels of Sercel equipment for six months with options to extend the lease for up to three years.

Aggregate payments under these leases total approximately $9.6 million and $1.2 million, respectively. This equipment increases the Company's total channel capacity to 25,000 channels; 16,000 of which are owned and 9,000 of which are leased.

Headquartered in Littleton, Colo., 3-D Geophysical is a leading provider of land-based seismic data acquisition services in the United States, Canada and Mexico. -0-

This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These forward-looking statements reflect numerous assumptions, involve a number of risks and uncertainties, and actual results may very materially.

Among the factors that could cause actual results to differ materially are: unanticipated adverse weather conditions; the level of activity in the oil and gas industry; inflationary trends; interest and exchange rates, and the other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. -0-

                        3-D Geophysical, Inc.
           Condensed Consolidated Statements of Operations
                            (Unaudited)

                                For the Three         For the Nine
                                Months ended          Months ended
                                September 30          September 30
                               1997       1996       1997       1996

Net revenues                $26,542    $16,612    $69,569    $36,151

Expenses:
Cost of data acquisition     19,447     12,111     55,623     26,563
Depreciation and
 amortization                 2,642      1,139      7,282      2,788
General and administrative
 expenses                     2,255      1,322      6,825      3,907

Total operating expenses     24,344     14,572     69,730     33,258

Operating income              2,198      2,040       (161)     2,893

Other income (expenses):
Miscellaneous                   201         73        962        437
Interest expense               (363)      (372)    (1,061)      (668)
Foreign currency gains
 (losses)                       362        (74)       221          7

Total other income (expense)    200       (373)       122       (224)

Income before provision
 before income taxes and
 extraordinary items          2,398      1,667        (39)     2,669

Provision for income taxes      884        368         67        645

Income/(loss) before
 extraordinary items          1,514      1,299       (106)     2,024

Extraordinary item, net of
 tax expense of $36              --         --         --         57

Net income (loss)            $1,514     $1,299      $(106)    $2,081

Income (loss) per share
 before extraordinary item     0.13       0.17      (0.01)      0.29
Extraordinary item per share,
 net of tax                      --         --         --       0.01
Net earnings (loss) per share  0.13       0.17      (0.01)      0.30

Weighted average common
 shares outstanding          11,960      7,736     11,960      6,927

Capital Expenditures          3,841      2,403      9,692     12,270

CONTACT: 3-D Geophysical Inc.

Ronald L. Koons, 303/645-0549