Paradigm Announces Agreement to Acquire Earth Decision

Paradigm Announces Agreement to Acquire Earth Decision

July 07, 2006

Acquisition Enhances Company's Leadership in Next Generation Model-Centric Interpretation for Oil and Gas Industry

    AMSTERDAM, Netherlands, July 7 /Xinhua-PRNewswire/ --
Paradigm ("the Company"), the leading software
and consulting provider to the oil and gas industry for
Rock and Fluid Interpretation(TM), announced today a
definitive agreement to acquire Earth Decision, a leading
provider of fully integrated shared-earth modeling for
asset teams.  Financial terms of the transaction were not
disclosed.  

    John Gibson, Executive Chairman and CEO of Paradigm,
said: "Given our shared vision for model-centric
workflows, the acquisition of Earth Decision represents a
tremendous strategic advantage for E&P scientists and
engineers.  For true collaboration and real-time decision
making, our customers need an interactive reservoir model
at the center of their workflow.  By combining our
complementary technology portfolios this vision becomes a
reality.  Asset teams can explore 'what if' scenarios
on-the-fly and determine the best plan for extracting the
full potential from every reservoir safely and
economically.  We look forward to working together with
Earth Decision's experienced management team and talented
employees to accomplish our shared objectives." 

    Jean-Claude Dulac is founder and Chief Architect of
Earth Decision and will remain in the role of Chief
Architect for Paradigm.  Dulac said, "We are excited
about joining forces with a proven industry leader and
combining our global presence.  We are confident that
together we will be better able to serve our clients by
extending our capabilities.  Our goal is to continue to
provide products and services using the highest quality
methods, people, and results.   Our strategic technology
platform will be stronger than before with the combined
strengths of the new organization."

    With the acquisition of Earth Decision, Paradigm will
have additional resources and technological strengths to
deliver advanced scientific and engineering technologies
for the oil and gas industry.  Both companies have a long
history of successfully commercializing and supporting
technology solutions for over 450 exploration and
production customers worldwide.  

    Jorge Machnizh, Chief Operating Officer of Paradigm,
said: "From a technology standpoint, Earth Decision is
an accomplished E&P innovator and has pioneered some of
the most creative and extensive 3D modeling software in the
industry.  The Earth Decision's Suite is recognized as the
industry's leading 3D structural modeling tool.  With rig
costs escalating and drilling going deeper in more
geocomplex regions, our combined technologies give
customers a competitive edge."

    Paradigm and Earth Decision are announcing this
transaction at a time in the industry when both companies'
customers worldwide are focused on replacing reserves and
dramatically optimizing the use of fixed drilling and
production assets to meet growing demand for oil and
natural gas.  The desire to explore in remote areas and
increase recovery from existing assets has driven
additional demand for Paradigm advanced E&P
applications and reservoir consulting services.  

    The combined company will be called Paradigm and Mr.
John Gibson will remain Executive Chairman and CEO. 
Paradigm expects to maintain Earth Decision's global office
network and does not expect significant workforce
reductions. 

    About Paradigm

    Paradigm(TM), founded in 1987, is the leading software
and consulting provider to the oil and gas industry for
Rock and Fluid Interpretation(TM).  Paradigm helps global
oil and gas companies safely replace reserves and increase
daily well production in complex geological areas. 
Paradigm's advanced technology provides Seismic Data
Processing and Imaging, Prospect Interpretation and
Modeling, Reservoir Characterization, Time-to-Depth
Conversions, Well Planning, and Drilling.  Committed to
open standards, Paradigm extends integration to exploration
and production data and third-party applications with the
Paradigm Epos(TM) Data Sharing and Application
Interoperability Framework.  The company has a global
network of sales, services and user support, serving major
oil and gas producing regions in 22 countries.  You can
learn more about Paradigm by visiting their website at
http://www.paradigmgeo.com .

    The following are trademarks or registered trademarks
of Paradigm Geotechnology B.V. or any of its affiliates
(collectively, "Paradigm"): Paradigm(TM),
Paradigm logo and/or other Paradigm products referenced
herein. All other trademarks are owned by their respective
owners.

    About Earth Decision

    Earth Decision creates the most effective and complete,
integrated decision support tools for profitable exploration
and production.  Earth Decision integrated modules provide a
powerful shared-earth model that unlocks the potential of
collaboration by the entire asset team.  From advanced
seismic visualization and velocity modeling to well path
design and platform position optimization, Earth Decision
offers workflow-driven solutions for both the novice and
the expert user.  The Base Module, powered by GOCAD, is
acknowledged as the industry's leading 3D structural
modeling tool.  With simple inputs, the Earth Decision
patented gridding technology, superb property modeling,
robust upscaling and innovative well trajectory solutions
provide the foundation for creating the most complete
shared earth model. Advanced seismic visualization and
interpretation modules ensure that accurate decisions and
calculated uncertainties are made with all available data. 
Visit their website at http://www.earthdecision.com .

    The following are trademarks or registered trademarks
of Earth Decision Sciences S.A. or any of its affiliates
(collectively, "Earth Decision Sciences"): GOCAD
and logos and/or other products referenced herein.  All
other trademarks are owned by their respective owners.

    Forward-Looking Statements: 

    Certain statements in this press release may constitute
forward-looking statements.  These statements are made on
the basis of the views and assumptions of the management of
Paradigm and Earth Decision regarding future events and
business performance as of the time the statements are made
and they do not undertake any obligation to update these
statements. Actual results may differ materially from those
expressed or implied.  Such differences may result from
legal or regulatory proceedings or other factors that
affect the timing or ability to complete the transactions
contemplated herein, actions taken by either of the
companies, including restructuring or strategic initiatives
(including capital investments or asset acquisitions or
dispositions), as well as from developments beyond the
companies' control.  Such developments may affect
assumptions regarding the operations of the businesses of
Paradigm and Earth Decision separately or as combined
entities including, among other things, the timing of the
transaction. 

    For more information, please contact:

     Susan Allen Farrell  
     Paradigm   
     Tel:   [phone]
     Email: [e-mail]

SOURCE  Paradigm