(Oslo/Houston, 7 April 2020) In response to increased market uncertainty due to
the coronavirus and lower oil prices, Magseis Fairfield will implement measures
to cut SG&A by a further 30% and capital expenditure by 50% compared to
previously communicated levels. 

Magseis Fairfield on 27 March provided an update on how it is managing the new
market situation as a result of the coronavirus pandemic and the resulting lower
oil price. Our primary concern has been – and continues to be – the safety and
welfare of our employees and their families and local communities. The company
is glad to report that no employees have so far been infected, and that none of
the employees that are in proactive self-quarantine have experienced any
symptoms.

“The coronavirus has so far not had any material effect on ongoing operations,
but it is clear to us that a new market situation with lower oil prices and a
weaker economic outlook will have an impact on our business for the remainder of
this year. We have now finalized our revenue scenario planning and are taking
action to align the cost base and investment levels to the new revenue outlook,”
says CEO Carel Hooijkaas in Magseis Fairfield. 

Compared to previously indicated levels for 2020, the management is now
implementing a multi-layered approach to achieve a further 30% reduction in SG&A
and a 50% reduction in capex. The new cost initiatives add to a series of
measures implemented by the new management as part of the reorganization and
restructuring of Magseis Fairfield over the past half year. Compared to the FY
2019-levels, SG&A costs are hence being reduced by approximately 60% to around
USD 25 million, and capex reduced by approximately 80% to around USD 15 million.
These lower cost and capex levels reflect the management’s current best
assessment of the activity outlook and will change depending on the actual
activity level for the remainder of the year.  
    
The new cost measures will include temporary layoffs/furlough, headcount
reductions, and other related cost reduction initiatives, that will be executed
in accordance with the local rules and regulations in each applicable country.
Magseis Fairfield has decided to cancel 2020 salary adjustments and cash bonuses
across the company.

“Our asset light model and the temporary layoff mechanisms gives us great cost
base flexibility to navigate this new market reality. We enter this cycle from a
position of strength following the debt refinancing and equity raise that was
completed in February 2020. In combination with an improved backlog, which
includes the recently announced award of a deep-water project in Mexico, and the
new cost measures, this enables us to preserve and protect our cash position
while continuing to pursue new market opportunities”, concludes Carel Hooijkaas.

For further information, please contact:
Carel Hooijkaas, CEO
Tel: +47 480 49 277
Email: carel.hooijkaas@magseisfairfield.com

Mark Ivin, CFO 
Tel: +47 948 88 606 
Email: mark.ivin@magseisfairfield.com 
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Magseis Fairfield is a leading provider of ocean bottom seismic systems and
services. The Marine Autonomous Seismic System "MASS" and the range of Z-nodes
combined with automated handling systems enables highly cost-efficient
acquisition of data with exceptional quality. The Company is headquartered in
Oslo, Norway and has offices in Norway, Sweden, UK, USA, Brazil and Singapore.

This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.