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SEITEL REPORTS RECORD THIRD QUARTER REVENUES AND IMPROVING PROFITS TREND

SEITEL REPORTS RECORD THIRD QUARTER REVENUES AND IMPROVING PROFITS TREND
 HOUSTON, Nov. 3 /PRNewswire/ -- Seitel, Inc. (NYSE: SEI; SEI.RA; SEI.F), fast becoming one of the largest providers of U.S. seismic data to the petroleum industry, announced today record revenues for the third quarter and earnings greatly improved from earlier results this year.
 For the third quarter ended Sept. 30, 1992, revenues rose 29 percent to $8.8 million from the record $6.9 million registered a year ago. Net income amounted to almost $1.3 million, nearly matching the record $1.4 million earned in the 1991 third period. Based on more shares outstanding in this year's third period, earnings per share on a primary basis amounted to $.22 and $.21 on a fully diluted basis, compared to $.27 on both a primary and fully diluted basis in the year-ago quarter.
 For the nine months of 1992, revenues totaled $19 million vs. $20 million last year. Net income was $2.8 million, equal to $.49 on both a primary and fully diluted basis, compared to $4.3 million, or $.81 per share primary and fully diluted, in last year's like period.
 "Contributing to the record third-quarter revenues were data sales from our first international seismic program in the U.K. Irish Sea, as well as sales already from two data libraries acquired this past summer, plus the launching of Seitel's first 3D (three-dimensional) seismic data creation program," said Paul A. Frame, president and CEO of Seitel.
 "In fact, revenues from library sales more than doubled to $4.5 million in the third quarter from $2.2 million a year ago," he reported.
 "Earnings in the quarter were much improved from earlier results this year, which was a transition period because of the major expansions Seitel has begun to embark on. The reason earnings did not match 1991's record third-period profits was due to expenses related to our expansions.
 "Our company has invested this year approximately $500,000, equal to about $.05 a share, related to the commencement of our international and 3D seismic expansions, which should generate accelerating revenues in the future that more than offset the associated costs," said Frame.
 In addition, Seitel has accelerated the rate it amortizes the costs associated with data creation because of the company's broadening data base, particularly the expansion into 3D seismic surveys. "While an increased amortization rate represents increased cost, we have done so because we expect 3D to generate resale revenues at a faster rate than 2D (two-dimensional) seismic data," he explained.
 "We expect continued improvement in profits in the fourth quarter, aided by our expanding data-creation activities as well as enlarging library base," the company chief executive stated.
 Seitel is making a major expansion into the burgeoning field of 3D seismic surveys, which produce a more detailed depiction of the Earth's subsurface than the 2D data the company has concentrated on until now. Both 2D and 3D seismic surveys are being used increasingly in the exploration and development of natural gas and crude oil, because the geoscientific information provided significantly increases drilling success and reduces finding costs.
 Seitel both creates high-quality seismic surveys and markets data from libraries. In total, the amount of seismic information that the company has available to market today is approaching one million miles, which is one of the largest independent U.S. seismic data bases.
 SEITEL, INC.
 Consolidated Condensed Statements of Operations
 (Unaudited)
 Three months ended Sept. 30 1992 1991
 Total revenues $ 8,833,386 $ 6,867,310
 Amortization of data banks 4,001,757 2,367,076
 Selling, general and
 administrative expenses 2,556,693 2,102,840
 Depreciation expense 64,374 24,686
 Net interest expense 391,114 190,543
 Total expenses 7,013,938 4,685,145
 Income before provision for
 federal income taxes 1,819,448 2,182,165
 Provision for federal income
 taxes 529,486 741,936
 Net income $ 1,289,962 $ 1,440,229
 Net income per share:
 Primary $ .22 $ .27
 Fully diluted $ .21(A) $ .27
 Weighted average number of
 shares outstanding:
 Primary 5,889,515 5,434,389
 Fully diluted 8,144,434(B) 5,434,389
 (A) -- Based on reconciliation of additional net income amounting to $.05 per share, reflecting assumed proceeds from exercise of all stock options, warrants and convertible debentures.
 (B) -- Assumes exercise of all stock options, warrants and convertible debentures.
 Nine months ended Sept. 30 1992 1991
 Total revenues $19,045,734 $20,307,440
 Amortization of data banks 7,766,843 6,968,481
 Selling, general and
 administrative expenses 6,026,506 6,227,061
 Depreciation expense 176,191 73,869
 Net interest expense 1,026,177 534,382
 Total expenses 14,995,717 13,803,793
 Income before provision for
 federal income taxes 4,050,017 6,503,647
 Provision for federal income
 taxes 1,277,997 2,211,240
 Net income $ 2,772,020 $ 4,292,407
 Net income per share:
 Primary $ .49 $ .81
 Fully diluted $ .49 $ .81
 Weighted average number of
 shares outstanding:
 Primary 5,625,035 5,291,532
 Fully diluted 5,625,035 5,291,532
 NOTE: All number of shares and per share amounts have been adjusted to reflect stock dividends paid to date.
 -0- 11/3/92
 /CONTACT: Jay M. Green, director - investor relations of Seitel, 203-629-0633/
 (SEI) CO: Seitel, Inc. ST: Texas IN: SU: ERN


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