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    PGS rejects CGG proposal

    News // September 3, 2004
    Petroleum Geo-Services (PGS) has announced that it has received a proposal from Compagnie Générale de Géophysique (CGG) for the acquisition of PGS' geophysical business.

    PGS said the proposed consideration is US$900 million, of which US$800 million is in cash and US$100 million is in newly issued shares of CGG common stock.The proposal is subject to fulfillment of several conditions including, among other things, satisfactory completion of due diligence and financing arrangements.

    PGS has previously disclosed its desire to take a leading role in a consolidation of the seismic industry. Accordingly, both management and financial advisers have performed evaluations of PGS and other participants in the seismic industry. However, based on these evaluations, the management and the Board of Directors of PGS consider the proposal to be inadequate in terms of price and other conditions. Consequently, PGS has informed CGG that the Proposal has been rejected.

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