News Release

MIDLAND, Texas, July 27 /PRNewswire-FirstCall/ -- The following was released by Dawson Geophysical Company (Nasdaq: DWSN):

Dawson Geophysical Company today reported continuing profitability for the fourth consecutive quarter earning $1,989,000 ($0.35 per diluted share) for the three months ending June 30, 2004, compared with a net loss in the prior year period of $1,407,000 ($0.26 per share).

For the nine months ending June 30, 2004, the Company earned $4,494,000 ($0.80 per diluted share) compared to a net loss in the prior year period of $1,456,000 ($0.27 per share).

Revenues for the June quarter of $17,112,000 represented a 52 percent increase over the prior year period. For the nine months, revenues of $47,790,000 exceeded those of the prior year by 30 percent.

The Company's continued improved performance is due to increasing demand for the Company's high-resolution 3-D seismic surveys, its expanded operations, modest price increases along with increased payments for lost time due to weather. Driving increased exploration efforts by the Company's client base are current price levels for crude oil and natural gas along with the general belief that such prices may stabilize.

The Company operated seven seismic data acquisition crews continuously throughout the June quarter and fielded an eighth crew on July 12th of the current quarter. Funding of approximately $10,000,000 during fiscal 2004 for the deployment of two recording crews, energy sources, additional recording channels for all eight crews, vehicles, and maintenance investment has been from operating cash flow and existing cash reserves. These expansions have elevated the Company to the position of number one provider of onshore seismic services in the U.S. lower 48 states in terms of active crew count according to the July 1 issue of the World Geophysical News. Moreover, of greater measure of capability, the Company's recording channel count now exceeds 32,000, enabling performance of surveys of virtually all sizes and specifications required by current state-of-the-industry high end standards.

The Company's order book currently exceeds six months of capacity operations, largely attributable to its reputation as a quality provider offering flexibility and adaptability to a complete range of operational requirements. Establishment and enlargement of offices in Houston, Denver and Oklahoma City has placed the Company conveniently near an expanded clientele.

Founded in 1952, Dawson Geophysical Company acquires and processes 2-D, 3-D and multi-component seismic data used in analyzing subsurface geologic conditions for the potential of oil and natural gas accumulation. Dawson's clients -- major and intermediate-sized oil and gas companies and independent oil operators -- retain exclusive rights to the information obtained.

The Company operates highly mobile, land-based acquisition crews throughout the lower 48 states. Data processing is performed by geophysicists at Dawson's computer center in the Midland, Texas headquarters. The Company also provides data processing services through the Houston, Texas office.

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, Dawson Geophysical Company cautions that statements in this press release which are forward-looking and which provide other than historical information involve risks and uncertainties that may impact the Company's actual results of operations. Please see the Company's Form 10-K for the fiscal year ended September 30, 2003 for a more complete discussion of such risk factors.

     STATEMENTS OF OPERATIONS
     (Unaudited)

                             Three Months Ended        Nine Months Ended
                                   June 30,                  June 30,
                              2004         2003         2004         2003

    Operating revenues    $17,112,000  $11,291,000  $47,790,000  $36,897,000
    Operating costs:
        Operating expenses 13,504,000   11,046,000   38,457,000   33,762,000
        General and
         administrative       648,000      580,000    1,867,000    1,775,000
        Depreciation        1,156,000    1,148,000    3,381,000    3,271,000
                           15,308,000   12,774,000   43,705,000   38,808,000

    Income (loss) from
     operations             1,804,000   (1,483,000)   4,085,000   (1,911,000)
    Other income:
      Interest income          58,000       73,000      175,000      256,000
      Gain (loss) on
       disposal of assets      (1,000)         ---       (4,000)      21,000
      Gain (loss) on sale
       of short-term
       investments            (15,000)         ---      (15,000)      52,000
        Other                 143,000        3,000      253,000      126,000
    Income (loss) before
     income tax             1,989,000   (1,407,000)   4,494,000   (1,456,000)

    Income tax (expense)
     benefit:                     ---          ---          ---          ---

    Net income (loss)      $1,989,000  $(1,407,000)  $4,494,000  $(1,456,000)

    Net income (loss) per
     common share               $0.36       $(0.26)       $0.81       $(0.27)

    Net income (loss) per
     common share-assuming
     dilution                   $0.35       $(0.26)       $0.80       $(0.27)

    Weighted average
     equivalent common
     shares outstanding     5,584,442    5,487,794    5,535,741    5,483,514

    Weighted average
     equivalent common
     shares outstanding-
     assuming dilution      5,681,372    5,487,794    5,601,703    5,483,514


     Balance Sheets
                                                   June 30,     September 30,
                                                     2004           2003
                                                 (Unaudited)
                             ASSETS
    Current assets:
      Cash and cash equivalents                   $3,153,000     $3,389,000
      Short-term investments                       4,155,000      8,623,000
      Accounts receivable, net of allowance
       for doubtful accounts of $127,000 in
       each period                                16,769,000      9,713,000
      Prepaid expenses                               503,000        287,000

          Total current assets                    24,580,000     22,012,000

    Property, plant and equipment                 88,867,000     81,585,000
      Less accumulated depreciation              (63,033,000)   (60,805,000)

        Net property, plant and equipment         25,834,000     20,780,000

                                                 $50,414,000    $42,792,000

           LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
      Accounts payable                            $3,077,000     $1,237,000
      Accrued liabilities:
        Payroll costs and other taxes                941,000        478,000
        Other                                        621,000        415,000

            Total current liabilities              4,639,000      2,130,000

    Stockholders' equity:
      Preferred stock-par value $1.00 per share;
       5,000,000 shares authorized, none
       outstanding                                       ---            ---
      Common stock-par value $.33 1/3 per share;
       10,000,000 shares authorized, 5,597,544
       and 5,487,794 shares issued and outstanding
       in each period                              1,866,000      1,829,000
      Additional paid-in capital                  39,661,000     38,931,000
      Other comprehensive income, net of tax        (111,000)        37,000
      Retained earnings (deficit)                  4,359,000       (135,000)

            Total stockholders' equity            45,775,000     40,662,000

                                                 $50,414,000    $42,792,000

SOURCE  Dawson Geophysical Company
    -0-                             07/27/2004
    /CONTACT:  L. Decker Dawson, CEO, or Christina W. Hagan, CFO, both of
Dawson Geophysical Company, +1-800-332-9766/
    /Web site:  http://www.dawson3d.com /
    (DWSN)

CO:  Dawson Geophysical Company
ST:  Texas
IN:  OIL
SU:  ERN

CJ-AP 
-- DATU052 --
9846 07/27/2004 19:16 EDT http://www.prnewswire.com