NGSG
                        NATURAL GAS SERVICES GROUP, INC.

                                                                      EXHIBIT 99

FOR IMMEDIATE RELEASE                                         NEWS
March 30, 2004                                                Amex - NGS, NGS.WS

           NATURAL GAS SERVICES GROUP ANNOUNCES CONVERSION OF SERIES A
                       PREFERRED STOCK INTO COMMON STOCK

    Stock Traded For 20 Consecutive Trading Days At Or Above $6.50 Per Share

MIDLAND, Texas, March 30, 2004 - Natural Gas Services Group, Inc. (AMEX:NGS),  a
leading  provider of equipment and services to the natural gas and oil industry,
announces  conditions required for the automatic conversion of the Company's 10%
convertible Series A Preferred Stock have been met. The Preferred Stock was able
to be  automatically  converted  into Common  Stock at any time after six months
from the Initial Public Offering,  if the Common Stock traded for 20 consecutive
trading  days at a price  equivalent  to 200%  of the  then  Conversion  price -
initially  200% is $6.50 per  share.  The  Company  reached  the 20  consecutive
trading days at the close of business on Friday, March 26, 2004.

As of  March  25,  2004 a total  of  315,154  shares  of  Preferred  Stock  were
outstanding.  The Preferred  Stock had a cumulative  annual dividend rate of 10%
payable in cash. The Company will no longer be required to pay a dividend on the
Preferred Stock, in effect saving approximately $100,000 annually.  This savings
will have a positive effect on Net Income,  Cash Flow,  EBITDA and Fully Diluted
Earnings Per Share.

Wallace Sparkman, Interim President, said, "I am very pleased we have reached 20
consecutive  trading  days at $6.50 or above and have been able to  convert  the
remaining Preferred Stock to Common Stock. It reinforces our initial success and
further proves we are well positioned to achieve our long-term goal of being the
industry leader of small to medium horsepower compressors.

About Natural Gas Services Group, Inc. (NGS)
NGS manufactures, fabricates, sells, leases and services natural gas compressors
that enhance the production of oil and gas wells. The Company also  manufactures
and sells flare  systems  and flare  ignition  systems for plant and  production
facilities.

For More Information, Contact:   Wallace Sparkman, Interim President
                                 800-580-1828
                                 Jim Drewitz, Investor Relations
                                 jdrewitz@comcast.net
                                 972-355-6070

  For more information about the Company's visit its website at www.ngsgi.com.


Certain  statements  contained herein are "forward  looking"  statements as such
term is defined in the Private Securities Litigation Reform Act of 1995. Because
statements include risks and uncertainties, actual results may differ materially
from those  expressed  or implied and  include,  but are not  limited to,  those
discussed in filings by the Company with the Securities and Exchange Commission.

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