Exhibit 99.1

                                      NGSE
                        NATURAL GAS SERVICES GROUP, INC.

FOR IMMEDIATE RELEASE                            For More Information, Contact:
August 5, 2004                                   Wallace Sparkman, CEO
                                                 800-580-1828
                                                 Jim Drewitz, Investor Relations
                                                 972-355-6070


                      NATURAL GAS SERVICES GROUP ANNOUNCES
                 COMPLETION OF PRIVATE PLACEMENT FOR $5 MILLION


MIDLAND, Texas, August 5, 2004 - Natural Gas Services Group, Inc. (AMEX:NGS),  a
leading  provider of equipment and services to the natural gas and oil industry,
announces the Company has  completed an agreement to sell 649,574  shares of its
restricted common stock at $7.69736 per share to C. Barney Investments, Ltd., an
accredited private investor.  The private placement will raise  approximately $5
million in net proceeds to the Company.

The Company announced on July 20, 2004 in a Form 8-K filing and on July 21, 2004
in a news  release,  it  had  entered  into  a  definitive  agreement  with  the
accredited private investor.

The private placement includes  restricted common stock and does not include any
warrants.  These shares represent  approximately  11% of the outstanding  common
stock. The closing occur on August 4, 2004. On August 5, 2004, the Company filed
a registration statement with the SEC for the resale of common stock.

NGS plans to use the net proceeds of the offering to further  advance the growth
of the Company's  rental fleet of natural gas  compressors,  working capital and
general  corporate  purposes,  including  possible  acquisition of strategically
located compressor companies.

About  Natural Gas Services  Group,
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Inc 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 visit the Company's 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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