Crew Upgrades in the United States and Strong International Sales Drive

                Significant Increases in Revenues and EBITDA



    HOUSTON, Aug. 6 /EMWNews/ -- Geokinetics Inc. (AMEX: GOK)

announced today financial results of operations for the three and six

months ending June 30, 2008. Highlights include:



    -- Increased revenue in seasonally low quarter by 59% from 2007 to

$113.6 million for the three months ended June 30, 2008. Increased revenue

by 28% from 2007 to $233.7 million for the six months ended June 30, 2008.



    -- Increased EBITDA by 1,140% from 2007 to $12.4 million for the three

months ended June 30, 2008. EBITDA increased by 58% from 2007 to $30.9

million for the six months ended June 30, 2008.



    -- Reduced loss applicable to common stockholders by 88% from 2007 to

$1.8 million, or ($0.18) per diluted share, for the three months ended June

30, 2008. Income applicable to common stockholders of $0.7 million, or

$0.07 per diluted share for the six months ended June 30, 2008 as compared

to a loss applicable to common stockholders of $10.3 million, or ($1.53)

per diluted share for the six months ended June 30, 2007.



    -- Invested $50.7 million in the first half of 2008 (including $25.0

million in the three months ended June 30, 2008), primarily to increase

channel count in international markets, as part of the Company's recently

expanded $80 million capital budget for 2008.



    -- Increased backlog to $413 million at June 30, 2008, from $321

million at June 30, 2007, down slightly from the quarterly record of $417

million at March 31, 2008.



    Three Months Results



    In the three months ended June 30, 2008, revenue increased 59% to

$113.6 million compared to $71.6 million for the same period of 2007.

Revenue consisted of $44.1 million for North American data acquisition

(compared to $32.7 million in 2007), $66.4 million for international data

acquisition (compared to $36.1 million in 2007) and $3.1 million from data

processing (compared to $2.9 million in 2007). Increased revenues were

driven primarily by improved weather and the impact of crew upgrades in the

United States, stronger international data acquisition revenues as a result

of increased demand for the Company's services and increased recording

capacity resulting from the Company's extensive capital investment program

in 2007 and the first half of 2008.



    Direct operating costs increased 43% to $91.6 million in the three

months ended June 30, 2008 compared to $64.1 million for the same period of

2007. Of this amount, $33.8 million related to North America data

acquisition (compared to $28.1 million in 2007), $55.5 million related to

international data acquisition (compared to $33.2 million in 2007) and $2.3

million related to data processing (compared to $2.7 million in 2007). The

Company's gross margin (excluding depreciation and amortization and general

and administrative expenses) for consolidated operations was 19% in the

three months ended June 30, 2008 as compared to 10% in the three months

ended June 30, 2007. North America data acquisition gross margin was 23%

(compared to 14% in 2007), international data acquisition gross margin was

16% (compared to 8% in 2007) and data processing gross margin was 26%

(compared to 7% in 2007).



    EBITDA (as defined below) increased significantly to $12.4 million for

the second quarter of 2008, compared to $1.0 million in the second quarter

of 2007. EBITDA improved in North America and international data

acquisition as well as data processing due to higher activity levels and

operational improvements as well as improving operating margins.



    The Company had a loss applicable to common stockholders of $1.8

million, or ($0.18) per diluted share, in the second quarter of 2008,

compared to a loss applicable to common stockholders of $15.5 million, or

($1.95) per diluted share, for the same quarter in 2007. The reduced loss

was primarily due to higher activity levels in all segments, decreased

interest expense and the $6.9 million loss on the redemption of the

Company's floating rate notes which occurred in the second quarter of 2007.

These were partially offset by higher depreciation expense resulting from

the Company's extensive capital investment program over the past 18 months.



    Six Months Results



    In the six months ended June 30, 2008, revenue increased 28% to $233.7

million compared to $182.6 million for the first six months of 2007.

Revenue consisted of $105.8 million for North American data acquisition

(compared to $83.3 million in 2007), $121.9 million for international data

acquisition (compared to $93.8 million in 2007) and $6.0 million from data

processing (compared to $5.5 million in 2007). Increased revenues were

driven primarily by a stronger Canadian winter season in 2008, the impact

of crew upgrades in the United States, stronger international data

acquisition revenues resulting from increased demand for the Company's

services, and increased recording capacity resulting from the Company's

extensive capital investment program in 2007 and the first half of 2008.



    Direct operating costs increased 25% to $184.0 million in the six

months ended June 30, 2008 compared to $147.2 million for the same period

of 2007. Of this amount, $80.9 million related to North America data

acquisition (compared to $69.2 million in 2007), $98.5 million related to

international data acquisition (compared to $72.9 million in 2007) and $4.6

million related to data processing (compared to $5.1 million in 2007). The

Company's gross margin (excluding depreciation and amortization and general

and administrative expenses) for consolidated operations of 21% in the six

months ended June 30, 2008 as compared to 19% in the same period of 2007.

North America data acquisition gross margin was 24% (compared to 17% in

2007), international data acquisition gross margin was 19% (compared to 22%

in 2007) and data processing gross margin was 23% (compared to 9% in 2007).

The decreased gross margin in the international operations is primarily due

to the results for 2007 including a very large international project that

accelerated and produced a very high gross margin that was not repeated

during the 2008 period.



    EBITDA (as defined below) increased to $30.9 million for the first six

months of 2008, compared to $19.6 million in the first six months of 2007.

EBITDA improved in data processing and North America, both in Canada as a

result of a stronger winter season and in the U.S. due to improved weather,

improved contract terms and the results of crew upgrades. EBITDA also

improved internationally due to increased activity levels.



    The Company had income applicable to common stockholders of $0.7

million, or $0.07 per diluted share, in the first six months of 2008,

compared to a loss applicable to common stockholders of $10.3 million, or

($1.53) per diluted share, for the same period in 2007. The improvement in

income was primarily due to improved operating results, lower interest

expense and a $6.9 million loss on the redemption of floating rate notes in

the six months ended June 30, 2007.



    Selected Balance Sheet Data



    Cash and cash equivalents and restricted cash totaled $16.7 million at

June 30, 2008, of which $1.2 million was restricted cash. Total debt was

$103.3 million with $24.9 million of that amount being current. Total debt

to capitalization was 34.5% at June 30, 2008 as compared to 29.4% at

December 31, 2007. The increase was primarily the result of additional

borrowings to fund the Company's capital investment program. On July 28,

2008, the Company completed the sale of 120,000 shares of its Series B

Convertible Preferred Stock along with warrants to purchase 240,000 shares

of the Company's common stock, for net proceeds of $29.4 million. These

proceeds were immediately used to reduce borrowings under the Company's

revolving credit facility, however, the Company expects to use these

amounts to fund its capital expenditure budget and working capital

requirements.



    Backlog Remains Strong



    The Company's backlog at the end of the second quarter was $413

million, slightly down from its record quarterly high of $417 million at

March 31, 2008 but up substantially from $321 million at June 30, 2007.

Approximately $274 million or 66% of current backlog is related to

international business (excluding Canada), with the remaining $139 million

or 34%, in North America ($132 million of this amount is attributed to the

United States). Backlog in the United States reduced from $176 million at

March 31, 2008 to $132 million as a result of increased price competition

in the land seismic market during the second quarter as competitors sought

to increase utilization and future backlog. The Company, however, chose to

avoid matching industry discounts in the United States as Company-wide

backlog remained extremely robust and near record levels. In addition, as

part of its profit improvement program in the United States, the Company

began increasing the amount of business under term contracts and reducing

third-party surveying and drilling costs by shifting the responsibility for

these directly to clients, which reduces future revenues but improves job

margins. The Company expects the amount of work performed under term

contracts in the United States to increase 46% in 2008 as compared to 2007.

Also during the quarter, a customer cancelled two jobs in Australia

scheduled for the third and fourth quarter. The affected crew will be

re-deployed to Angola during the third quarter and is expected to return to

Australia in 2009.



    Operations Overview



    During the second quarter, the Company experienced its normal seasonal

decline in crew activity and utilization in North America from first

quarter levels. However, higher crew activity in international markets

helped to somewhat offset the seasonal decrease experienced in North

America. As expected, one crew operated for approximately half of the

second quarter in Canada and incurred some routine additional costs for

repair and maintenance from the winter season. In the United States, a

total of eight crews worked actively in Central Texas, Oklahoma, Arkansas

and the Texas/Louisiana Gulf Coast region, although two of these were

hampered by weather early in the quarter. In Latin America, the Company

operated four to six crews during the quarter in Bolivia, Brazil and

Colombia, and is in the early stages of mobilizing a crew to Suriname

expected to commence working in the late third or early fourth quarter. In

the Eastern Hemisphere, marketing efforts initiated in 2007 continued to

deliver positive results. The Company operated its transition zone crew in

Egypt most of the quarter, with minimal downtime as the crew moved between

projects. The Company's ocean bottom cable ("OBC") crew in Australia worked

just over one month in the quarter after restarting in late May. The

Company operated one crew in Bangladesh for two months of the quarter, one

crew in Tanzania for the majority of the quarter and mobilized a crew into

Mozambique, which commenced operations late in the quarter. Finally, the

Company started up a new transition zone crew in Australia which operated

for approximately one month before moving to New Zealand for additional

work.



    Capital Investments



    In the second quarter of 2008, the Company continued to invest in

revenue-generating equipment and recording capacity. A total of $25.0

million was invested primarily in international operations, bringing total

capital investments for the year to $50.7 million. The Company added 800

stations (3,200 channels) of additional Sercel SeaRay recording equipment

and fitted out three new vessels for its OBC operations, as well as adding

additional support equipment for its Latin American and Eastern Hemisphere

operations. As of June 30, 2008, the Company had approximately 94,700

stations of single-component and 8,250 stations of multi-component

recording equipment, equating to a total channel count of 121,000. This

compares to 108,000 channels at December 31, 2007 and 94,400 channels at

June 30, 2007, using this methodology. Additional channels increase the

Company's revenue generating capacity through improved technology, the

ability to operate larger, higher channel count crews and by reducing

equipment downtime.



    Third Quarter 2008 Activity Outlook



    The Company is providing this update to assist shareholders in

understanding the operational expectations for the third quarter of 2008. A

large portion of the Company's equipment that operates in Canada during the

winter has been moved to markets outside North America and only one crew is

expected to operate in Canada for part of the third quarter at activity

levels consistent with the second quarter. The Company expects to continue

operating eight crews in the United States as it did in the second quarter

of 2008 and expects to have strong utilization for the remainder of the

third quarter. Activity levels in Colombia are expected to remain strong,

up slightly from the second quarter, and a crew is mobilizing to Suriname

to begin a new job expected to start in the late third or early fourth

quarter. One crew is expected to operate in Brazil, consistent with the

second quarter and the Company expects increasing activity levels for its

one crew in Bolivia. In the Eastern Hemisphere, the Company's OBC crew

working in Australia is expected to operate there for approximately one

month and then move to Angola to commence work on a new job late in the

quarter. The Company's new transition zone crew in Australia has mobilized

to New Zealand and is expected to operate approximately half of the third

quarter. In Egypt, the Company's crew is expected to work the majority of

the quarter, with the exception of time needed for a move between projects.

The Company's crew in Tanzania is expected to continue working in the third

quarter at a slightly reduced level from the second quarter while the crew

in Mozambique is expected to operate the entire third quarter compared to a

short period during the second quarter. The Company's land crew in

Bangladesh is being converted to a transition zone crew and is expected to

commence operations in Malaysia mid-quarter. Finally, the Company is in the

early stages of mobilizing for a land project in Angola (in addition to the

OBC project mentioned above), which is not expected to commence until the

fourth quarter.



    Management Comment



    Richard Miles, President and Chief Executive Officer, said: "Continued

investment in recording channel capacity and crew upgrades, combined with

our international expansion efforts contributed to significantly improved

results in the second quarter of 2008. Typically, our second quarter

revenues and profits seasonally decline in North America from the first

quarter, as the Canadian thaw results in the majority of these crews going

idle with this year being no exception. Through improved control over our

Canadian idle costs, improved performance in the United States land market

and increased activity levels internationally, normal seasonal impacts were

significantly reduced this year. Our backlog remains strong and I am

excited about our revenue visibility into next year. I am encouraged by the

ability of our new transition zone and OBC crews to penetrate new,

fast-growing international seismic markets and our success in maintaining

our strong competitive position in the attractive U.S. land seismic market.

The continued strength of our order book, and the increasing amount of

international and shallow water work included, is a testament to the

increasing demand for our innovative solutions, which help our customers

maximize the returns from their complex E&P projects."



    Miles continued, "Robust customer demand is driving our capital

investment decisions to add increased revenue generating capacity. In the

second quarter we spent $25.0 million on new equipment to increase our OBC

recording capacity and prepare for upcoming work in new international

markets. We continue to focus on improving our worldwide operations for

improved efficiency and service to our customers, profitability and

stockholder value."






    Below are condensed consolidated Statements of Results of Operations.

More detailed information is available in the Company's Form 10-Q for the

three and six months ended June 30, 2008 which will be filed by August 11,

2008.







                                                       For the Three Months

                                                               Ended

                                                              June 30,

                                                        2008           2007

                                                      (In thousands, except

                                                         per share amounts)



    Revenue                                         $113,579        $71,604



    Expenses:

        Operating expenses                            91,567         64,072

        General and administrative                     9,586          6,532

        Depreciation and amortization                 11,787          8,188

            Total expenses                           112,940         78,792

    Other gain (loss), net                               293            206

    Income (loss) from operations                        932         (6,982)



    Other income (expense):

        Interest expense, net                         (1,456)        (2,939)

        Loss on redemption of floating rate notes                    (6,936)

        Other                                            172            862

                                                      (1,284)        (9,013)



    Loss before income taxes                            (352)       (15,995)

    Provision for income taxes                           193         (1,749)

    Net loss                                            (545)       (14,246)

    Preferred stock dividend and accretion costs       1,301          1,204

    Income applicable to common stockholders         $(1,846)      $(15,450)



    Loss per common share - basic                     $(0.18)        $(1.95)

    Loss per common share - diluted                   $(0.18)        $(1.95)



    Weighted average common shares

     outstanding - basic                              10,355          7,918

    Weighted average common shares

     outstanding - diluted                            10,355          7,918







                                                    For the Six Months Ended

                                                              June 30,

                                                        2008           2007

                                                      (In thousands, except

                                                        per share amounts)



    Revenue                                         $233,733       $182,568



    Expenses:

        Operating expenses                           183,982        147,201

        General and administrative                    18,888         15,752

        Depreciation and amortization                 22,778         15,720

            Total expenses                           225,648        178,673

    Other gain (loss), net                               212          1,748

    Income from operations                             8,297          5,643



    Other income (expense):

        Interest expense, net                         (2,777)        (6,826)

        Loss on redemption of floating rate notes                    (6,936)

        Other                                           (489)         1,115

                                                      (3,266)       (12,647)



    Income (loss) before income taxes                  5,031         (7,004)

    Provision for income taxes                         1,713            938

    Net income                                         3,318         (7,942)

    Preferred stock dividend and accretion costs       2,577          2,382

    Income (loss) applicable to common stockholders     $741       $(10,324)



    Income (loss) per common share - basic             $0.07         $(1.53)

    Income (loss) per common share - diluted           $0.07         $(1.53)



    Weighted average common shares

     outstanding - basic                              10,336          6,750

    Weighted average common shares

     outstanding - diluted                            10,583          6,750





    The Company defines EBITDA as Earnings before Interest, Taxes, Other

Income (Expense) (including returns to preferred stockholders, foreign

exchange gains/losses, gains/losses on sale of equipment and insurance

proceeds, warrant expense and other income/expense), and Depreciation and

Amortization. EBITDA is not a measure of financial performance derived in

accordance with Generally Accepted Accounting Principles ("GAAP") and

should not be considered in isolation or as an alternative to net income as

an indication of operating performance. See below for reconciliation from

Net Income to Common Stockholders to EBITDA amounts referred to above:










                                                       For the Three Months

                                                              Ended

                                                              June 30,

                                                        2008           2007

                                                          (In thousands)

    Net Loss to Common Stockholders                 $(1,846)      $(15,450)

    Preferred Stock Dividends and Accretion Costs      1,301          1,204

    Net Loss                                           (545)       (14,246)

    Provision for income taxes                           193        (1,749)

    Interest Expense, net                              1,456          9,875

    Other Expense (Income) (as defined above)          (465)        (1,068)

    Depreciation and Amortization                     11,787          8,188

    EBITDA                                           $12,426         $1,000







                                                         For the Six Months

                                                               Ended

                                                              June 30,

                                                        2008           2007

                                                          (In thousands)

    Net Income (Loss) to Common Stockholders            $741      $(10,324)

    Preferred Stock Dividends and Accretion Costs      2,577          2,382

    Net Income (Loss)                                  3,318        (7,942)

    Provision for income taxes                         1,713            938

    Interest Expense, net                              2,777         13,762

    Other Expense (Income) (as defined above)            277        (2,863)

    Depreciation and Amortization                     22,778         15,720

    EBITDA                                           $30,863        $19,615





    Conference Call and Webcast Information



    Geokinetics has scheduled a conference call and webcast on Thursday,

August 7, 2008, beginning at 11:00 a.m. Eastern Daylight Time and 10:00

a.m. Central Daylight Time to discuss its second quarter and first half

2008 financial and operational results. The webcast may be accessed online

through Geokinetics' website at http://www.geokinetics.com in the Investor

Relations section. A limited number of telephone lines will also be

available to participants ten minutes prior to the start of the webcast by

dialing (877) 407-8035 for domestic or (201) 689-8035 for international.



    A replay of the webcast will be available online at

http://www.geokinetics.com in the Investor Relations section and at

http://www.investorcalendar.com. A telephone audio replay will also be

available through August 21, 2008, by dialing (877) 660-6853 for domestic

or (201) 612-7415 for international, account #286 and conference ID#289410.

If you have any questions regarding this procedure, please contact Diane

Anderson at (713) 850-7600.

    About Geokinetics Inc.



    Geokinetics Inc., based in Houston, Texas, is a leading global provider

of seismic acquisition and high-end seismic data processing services to the

oil and gas industry. Geokinetics has strong operating presence in North

America and is focused on key markets internationally. Geokinetics operates

in some of the most challenging locations in the world from the Arctic to

mountainous jungles to the transition zone environments. More information

about Geokinetics is available at http://www.geokinetics.com.



    Forward-Looking Statements



    This press release includes "forward-looking statements" within the

meaning of Section 27A of the Securities Act of 1933 and Section 21E of the

Securities Exchange Act of 1934, as amended (the "Exchange Act"). All

statements, other than statements of historical facts, included in this

earnings release that address activities, events or developments that

Geokinetics expects, believes or anticipates will or may occur in the

future are forward- looking statements. These statements include but are

not limited to statements about the business outlook for the year, backlog

and bid activity, business strategy, related financial performance and

statements with respect to future benefits. These statements are based on

certain assumptions made by Geokinetics based on management's experience

and perception of historical trends, industry conditions, market position,

future operations, profitability, liquidity, backlog, capital resources and

other factors believed to be appropriate. Such statements are subject to a

number of assumptions, risks and uncertainties, many of which are beyond

the control of Geokinetics, which may cause actual results to differ

materially from those implied or expressed by the forward-looking

statements. These include risks relating to financial performance and

results, job delays or cancellations, impact from severe weather conditions

and other important factors that could cause actual results to differ

materially from those projected, or backlog not to be completed, as

described in the Company's reports filed with the Securities and Exchange

Commission. Backlog consists of written orders and estimates of

Geokinetics' services which it believes to be firm, however, in many

instances, the contracts are cancelable by customers so Geokinetics may

never realize some or all of its backlog, which may lead to lower than

expected financial performance.



    Although Geokinetics believes that the expectations reflected in such

statements are reasonable, it can give no assurance that such expectations

will be correct. All of Geokinetics' forward-looking statements, whether

written or oral, are expressly qualified by these cautionary statements and

any other cautionary statements that may accompany such forward-looking

statements. Any forward-looking statement speaks only as of the date on

which such statement is made and Geokinetics undertakes no obligation to

correct or update any forward-looking statement, whether as a result of new

information, future events or otherwise.