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No. of Recommendations: 1

ION competes with a few major players and also with a bunch of smaller regional companies. Here is a good look at the competition:

Industry size: $15 to $17 billion (measured in annual revenues)

CGGVeritas – 21% - meaningful positions in all segments; largest player with a comprehensive set of offerings.

Western Geco – 14% - meaningful positions in all segments; a division of SLB (and the SLB model: any technology developed is used by the in-house services arm as part of a bundled full-scope offering.

PGS – 9% - focuses on marine acquisition; has a data processing arm; the #3 player in marine in terms of fleet size, they just divested their land business; they are battling with Geco’s marine technology offering.

BGP – 8% - focuses on land onshore acquisition; has a data processing arm; now can be considered a partner of ION’s with their joint venture INOVA for land equipment which was formed in 3/10. We’ve pooled our land technologies with BGP’s global operating footprint of the world’s largest land seismic contractor. BGP has announced they intend to get into marine acquisition in a bigger way with their first multi-streamer vessel soon to launch most likely with technology from ION. They have a data processing arm (to date, they have shy’d away from multi-client programs that deliver data libraries primarily because this model is more applicable off-shore.

TGS – 3% - focuses on multi-client seismic data programs which they feed into a global data library portfolio. They are a marine acquisition specialist. They don’t own or operate their own vessels, but use a virtual model based on long-term charters to acquire the data for programs that they process and feed into their libraries.

ION – 3% - $420 m in revenues in ’09 – historically a small portion of overall revenue in the industry because of their avoidance of acquisition services and a focus on technology.

Others – 42% - comprised of a series of smaller players, especially in land acquisition and data processing) They compete all over the world but especially in Russia, SE Asia, and N. America)

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