351231--11/23/2010--DAWSON_GEOPHYSICAL

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Weakness in the global economy during the past few years decreased demand for our seismic services, caused downward pressure on the prices we charge and affected our results of operations during the past few years, and continued weakness in the global economy would continue to affect us. We face intense competition in our business that could result in downward pricing pressure and the loss of market share. Our clients could delay, reduce or cancel their service contracts with us on short notice, which may lead to lower than expected demand and revenues. The high fixed costs of our operations could adversely affect our results of operations. Our revenues are subject to fluctuations that are beyond our control which could adversely affect our results of operations in any financial period. Weather conditions and delays in obtaining land access rights from third parties have particularly affected our results of operations in past periods and are likely to affect our results in future periods. Our profitability is determined, in part, by the productivity of our crews and the type of contracts we enter into and is affected by numerous external factors that are beyond our control. A limited number of customers account for a significant portion of our revenues, and the loss of one of these customers could harm our results of operations; we bear the risk if any of our clients become insolvent and fail to pay amounts owed to us, so any failure to pay by these clients could harm our results of operations. We may be unable to attract and retain skilled and technically knowledgeable employees which could adversely affect our business and our growth. Capital requirements for our operations are large. If we are unable to finance these requirements, we may not be able to maintain our competitive advantage. We rely on a limited number of key suppliers for specific seismic services and equipment. Technological change in our business creates risks of technological obsolescence and requirements for future capital expenditures. If we are unable to keep up with these technological advances, we may not be able to compete effectively. Our results of operations could be adversely affected by asset impairments. We operate under hazardous conditions that subject us to risk of damage to property or personal injuries and may interrupt our business. We may be subject to liability claims that are not covered by our master service agreements or by insurance. We may be held liable for the actions of our subcontractors. Our industry is subject to governmental regulation which may adversely affect our future operations. Certain provisions of our charter and bylaws and our shareholder rights plan may make it difficult for a third party to acquire us, even in situations that may be viewed as desirable by shareholders.

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351231--11/23/2010--DAWSON_GEOPHYSICAL_CO