Mitcham Industries Named Exclusive Leasing Agent for Sercel's DSU3 428XL Digital Sensor Unit

HUNTSVILLE, TX - September 12, 2006 - Mitcham Industries, Inc. (NASDAQ: MIND) today announced that in addition to its existing agreements with Sercel it has signed a new Exclusive Equipment Lease Agreement. Under the terms of the agreement, Mitcham will serve as the exclusive leasing agent for Sercel's new DSU3 428XL (three-component digital sensor unit). The DSU3 428XL is an integrated package of station electronics with MEMS (Micro-Electro-Mechanical System) digital accelerometers, which can be used with Sercel's 408UL or 428XL systems.

Next Generation Sensor

For both the geophysical contractor and the oil company, the DSU3 428XL offers compelling technology. For the contractor seeking to enhance cost effective operations, the DSU3 428XL is less labor intensive to layout; it is the only digital sensor able to be tested in the field and it consumes four times less power than available alternatives, substantially reducing the demands of battery management. The ability to lease the new DSU3 428XL will enable contractors to use this new technology on appropriate projects without incurring substantial capital investment.

For the oil company seeking to image more complex and challenging targets, the DSU3 428XL is designed to meet the needs of high density, full resolution, large channel count surveys by providing broad bandwidth, low distortion and highly matched responses. The DSU3 428XL provides low frequency broadband data that cannot be acquired with conventional geophones. In seismic data acquisition - where the majority of recorded frequencies are below 40Hz - the DSU is able to add 10Hz of data. With high-end frequencies, the DSU3 428XL can be used as a single point receiver. The DSU3 428XL captures the full seismic wave - both shear wave and P-wave - enabling geological events to be captured that would be missed with conventional P-wave sensors. The DSU3 428XL also allows the effects of energy source noise (ground roll) to be easily removed from the seismic record during processing.

"Our clients are pursuing large channel count surveys with increased density in their exploration activities and surveys with extended dynamic range for reservoir characterization and monitoring," said Billy F. Mitcham, Jr., Mitcham Industries' Chief Executive Officer and President. "The DSU3 428XL is proven to perform at the leading edge of today's geophysical data acquisition requirements. There is strong interest in the DSU3 428XL and we already have commitments in hand for our initial shipment of 3,500 stations (10,500 channels). We believe the DSU3 428XL will be a core technology of the future as geoscientists seek more comprehensive solutions to geophysical and geological challenges. As part of our agreement with Sercel, we will be expanding our DSU lease pool over the next few years and we look forward to offering this equipment to contractors and oil companies operating around the globe."