HOUSTON, TX -- Petroleum Geo-Services ASA (NYSE:PGO)(OSE:PGS) announced today a new agreement with IBM that will double its current data processing capability with more than One Teraflop of additional high performance capacity. This agreement, formulated through close cooperation between PGS and the IBM Strategic Alliance Office Team, will last through 2004. Working together, PGS and IBM studied the future capacity plans of PGS, and while taking into consideration the technological direction of the market place, developed this agreement which gives PGS the flexibility and control to quickly deploy additional IBM equipment worldwide only when needed to meet its customer's local demands. Contingent upon future capacity requirements, this agreement will include the implementation of additional IBM equipment plus the latest X Series Linux SuperClusters. Diz Mackewn, president of PGS Geophysical, commented, "This agreement provides PGS with the business opportunity to manage its technology infrastructure more efficiently on a global scale. As a result, PGS is better prepared to respond quickly to the growing demands of our customers for greater processing capacity." Petroleum Geo-Services is a technologically-focused oilfield service company principally involved in two businesses: Geophysical Operations and Production Operations. PGS acquires, processes and markets 3D, time-lapse and multi-component seismic data. These data are used by oil and gas companies in the exploration for new reserves, the development of existing reservoirs and the management of producing oil and gas fields. PGS' advanced geophysical technologies allows oil and gas companies to better characterize and monitor their reservoirs in order to enhance production and ultimate recovery of hydrocarbons. In its Production Operations business, PGS owns four floating production, storage and offloading systems ("FPSOs") and operates numerous offshore production facilities for oil and gas companies. FPSOs permit oil and gas companies to produce from offshore fields more quickly and cost effectively. PGS operates on a worldwide basis with headquarters in Oslo, Norway, and Houston. For additional information visit www.pgs.com or www.ibm.com