Market Overview

Geospace Technologies Corporation Acquires Quantum Technology Sciences


Geospace Technologies (NASDAQ:GEOS) today announced that it has
acquired all of the outstanding common stock of Quantum Technology
Sciences, Inc., a Florida-based tactical security and surveillance
systems solutions provider ("Quantum"). Quantum's operations will remain
in Florida, performing as a wholly-owned subsidiary of Geospace
Technologies Corporation.

Quantum has more than 27 years as a U.S. Federal Contractor supporting
Department of Defense, Department of Homeland Security, Department of
Energy, and other agencies with geophysical sensing research and
development. Quantum spent nearly a decade developing a proprietary
detection system called SADAR®, the seismic-acoustic
equivalent to RADAR and SONAR. This technology detects, identifies,
locates, and follows activities of interest in real-time, such as
pedestrians, vehicles, motorized watercraft, and subterranean activity.
Using SADAR®, Quantum has grown to become a recognized
leading innovator in seismic acoustic detection and ranging technology.
This proven technology has numerous security applications, including
cross-border tunneling detection.

Regarding the acquisition, Walter R. ("Rick") Wheeler, President and CEO
of Geospace Technologies, said, "This acquisition further diversifies
our business outside the oil and gas industry while helping to fulfill
our growth ambitions in the border and perimeter security markets. We
believe Quantum stands out as the preeminent innovator of unique
products and solutions incorporating seismic acoustic technologies in
the protection of international borders and other critical
infrastructure found in both governmental and commercial settings. The
intelligent products and services developed by Quantum are complementary
to every aspect of Geospace's advanced engineering, manufacturing, and
field support operations. With our combined resources, we believe
Quantum gains significant leverage in accelerating its product
penetration within the physical security markets. As our combined
research and development teams work together on the integration of our
respective technologies for the future, we expect to create a true force
multiplier advancement in product capabilities for these markets that
far exceeds any existing product offerings. The combination of
Geospace's large scale acquisition system designs and Quantum's
algorithmic security solutions will provide a unique and powerful border
security tool for both marine and land applications. Quantum's security
and perimeter market expertise and customer knowledge will help
accelerate Geospace's entry into this market. We believe the market
opportunities for these products and the solutions they provide are
vast, and the strategic acquisition of Quantum will help secure our
future stability and potential growth."

Mark A. Tinker, Quantum's CEO, said, "We are excited to be part of the
Geospace family. This transaction is ideal as it brings together two
highly complementary companies. Geospace's decades of manufacturing and
deploying hardened geophysical acquisition systems and Quantum's 20
years of innovating acquisition and algorithmic solutions to serve
unusual and challenging applications means our combined customer base
will now have the complete vertical spectrum of seismic-acoustic
products available to them. My mind is racing with where we can take the
next-generation of valuable seismic acoustic applications."

About Geospace Technologies

Geospace Technologies Corporation designs and manufactures instruments
and equipment used by the oil and gas industry to acquire seismic data
in order to locate, characterize and monitor hydrocarbon producing
reservoirs. The company also designs and manufactures related products
for use outside of the oil and gas industry, including industrial
products, offshore cables, thermal printing equipment and film.

About Quantum Technology Sciences

Quantum designs and sells tactical security and surveillance solutions
to safeguard highly valued assets, critical infrastructure, borders and
perimeters. Since its inception in 1991, Quantum has provided valuable
geophysical sensing technologies to serve various U.S. government
missions to include the Department of Defense, Department of Energy,
Department of Homeland Security and other agencies.

Forward Looking Statements

This press release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These
forward-looking statements can be identified by terminology such as
"may", "will", "should", "intend", "expect", "plan", "budget",
"forecast", "anticipate", "believe", "estimate", "predict", "potential",
"continue", "evaluating" or similar words. Statements that contain these
words should be read carefully because they discuss our future
expectations, contain projections of our future results of operations or
of our financial position or state other forward-looking information.
Examples of forward-looking statements include, among others, statements
that we make regarding our expected operating results, the results and
success of our transactions with Quantum, the adoption and sale of our
products in various geographic regions, anticipated levels of capital
expenditures and the sources of funding therefore, and our strategy for
growth, product development, market position, financial results and the
provision of accounting reserves. These forward-looking statements
reflect our current judgment about future events and trends based on the
information currently available to us. However, there will likely be
events in the future that we are not able to predict or control. The
factors listed under the caption "Risk Factors" and elsewhere in our
most recent Annual Report on Form 10-K and Quarterly Report on Form
10-Q, which are on file with the Securities and Exchange Commission,
provide examples of risks, uncertainties and events that may cause our
actual results to differ materially from the expectations we describe in
our forward-looking statements. Such examples include, but are not
limited to, the failure of the Quantum transaction to yield positive
operating results, decreases in commodity price levels, which could
reduce demand for our products, the failure of our products to achieve
market acceptance, despite substantial investment by us, our sensitivity
to short term backlog, delayed or cancelled customer orders, product
obsolescence resulting from poor industry conditions or new
technologies, bad debt write-offs associated with customer accounts,
lack of further orders for our OBX systems, failure of our non-seismic
products to be adopted by the border and security perimeter market,
infringement or failure to protect intellectual property, and any
negative impact from our restatement of our financial statements
regarding current assets. The occurrence of the events described in
these risk factors and elsewhere in our most recent Annual Report on
Form 10-K and Quarterly Report on Form 10-Q could have a material
adverse effect on our business, results of operations and financial
position, and actual events and results of operations may vary
materially from our current expectations. We assume no obligation to
revise or update any forward-looking statement, whether written or oral,
that we may make from time to time, whether as a result of new
information, future developments or otherwise.

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