(OMNI LOGO) NEWS RELEASE Nasdaq: OMNI
- --------------------------------------------------------------------------------
4500 NE Evangeline Thwy o Carencro, LA 70520 o
Phone o 337-896-6664 o Fax 337-896-6655
FOR IMMEDIATE RELEASE NO. 05-01
FOR MORE INFORMATION CONTACT: G. Darcy Klug, Executive Vice President
PHONE: (337) 896-6664
OMNI FILES SUIT AGAINST DEBENTURE HOLDERS
Suit Seeks Disgorgement of Profits Realized through Statutorily-Prohibited
Short Swing Sales Company to Request NASD Investigation in Trading Activity
CARENCRO, LA - JANUARY 25, 2005 - OMNI ENERGY SERVICES CORP. (NASDAQ
NM: OMNI) announced today it has filed suit in the United States District Court
for the Western District of Louisiana against the holders of its 6.5%
Subordinated Convertible Debentures (the "Debentures). The suit alleges claims
against Provident Premier Master Fund, Ltd., Portside Growth and Opportunity
Fund, Manchester Securities Corp., Elliott Management Corporation, Gemini
Investment Strategies, L.L.C., Ramius Capital, L.L.C., and Gemini Master Fund,
Ltd. (collectively the "Debenture Holders") arising under Section 16(b) of the
Securities Exchange Act of 1934. The Company also announced today that it has
been in discussions with and expects to formally request the National
Association of Securities Dealers ("NASD") investigate the short-swing trading
activity in its common stock by the Debenture Holders while beneficially owning
more than 10% of OMNI's common stock (on an as converted basis). The Company
believes the Debenture Holders engaged in short-swing trading of the Company's
common stock in a scheme to deliberately manipulate the price of the Company's
common stock. By "shorting" the Company's common stock and forcing a decline in
the trading price, the Debenture Holders increased the number of common shares
they are entitled to receive upon conversion of the Debentures for shares of
common stock.
Commenting on the litigation, James C. Eckert, OMNI's Chairman and
Chief Executive Officer stated, "It is especially troublesome to see the adverse
impact on our market capitalization caused by this alleged short-swing trading
activity of the Debenture Holders. This trading activity appears to have
unjustly pressured the stock price for the potential gain of the Debenture
Holders. The Company's fundamentals remain strong. Seismic drilling activity is
running at record levels. The Environmental division continues to post
impressive results. The restructuring program to improve the margins reported by
the Aviation division is continuing. We believe that the recent decline in the
Company's stock price is unwarranted. Improper influences on our stock price
caused by third parties will not be tolerated," concluded Eckert.
Headquartered in Carencro, LA, OMNI Energy offers a broad range of
integrated services to geophysical companies engaged in the acquisition of
on-shore seismic data and through its aviation division, transportations
services to oil and gas companies operating in the shallow, offshore waters of
the Gulf of Mexico. The company provides its services through several business
divisions: Seismic Drilling, Aviation (including helicopter support),
Environmental, Permitting and Seismic Survey. OMNI's services play a significant
role with geophysical companies who have operations in marsh, swamp, shallow
water and the U.S. Gulf Coast also called transition zones and contiguous dry
land areas also called highland zones.
Forward-looking statements in this release are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that all forward-looking statements involve risks
associated with the outcome of these short swing trading allegations, OMNI's
dependence on activity in the oil and gas industry, labor shortages,
international expansion, dependence on significant customers, seasonality and
weather risks, competition, technological evolution, the outcome of pending
litigation, completion of acquisitions, and other risks detailed in the
Company's filings with the Securities and Exchange Commission.