By order dated August 29, 2006, Judge Vanessa D. Gilmore, of the United States District Court for the Southern District of Texas, denied Ernst & Young’s motion to dismiss in the action In re Seitel, Inc. Securities Litigation, which is pending in federal court in Houston, Texas.

This securities fraud class action was originally filed against Seitel, certain of its former officers and directors, and Ernst & Young, the company’s auditor, alleging that the defendants made material misrepresentations concerning Seitel’s financial results. After the action was filed, Seitel went into bankruptcy and plaintiff entered into a settlement with the company and the management defendants.

After the settlement, Ernst & Young, the only remaining defendant, moved to dismiss the amended complaint that had been filed only against it. Judge Gilmore’s decision denied Ernst & Young’s motion. The action covers those investors who purchased Seitel shares during the period April 2, 2001, through May 3, 2002 (the "Class").

Wolf Popper LLP is lead counsel for plaintiff and the Class.

If you would like additional information concerning this case, please contact:

Wolf Popper LLP • Carl L. Stine, Esq. • 845 Third Avenue • New York • NY 10022
Tel.: 212.451.9631 or 877.370.7703 (toll free) • Fax: 212.486.2093 or 877.370.7704 (toll free)
Email: cstine@wolfpopper.com• website: www.wolfpopper.com