Caspian Services Inc.

A Rapidly Growing Oil Field Service Provider in the Caspian Region

The Caspian Spider – CSI’s newly acquired shallow draft cable lay and work barge.

May 2008

Forward Looking StatementIn the interest of providing Caspian Services Inc. (the Company)

shareholders and potential investors with information regarding the Company, including management’s assessment of the Company’s future plans and operations, certain statements and graphs throughout this presentation are ‘forward-looking statements’ and represent the Company’s internal projectionsforward-looking statements and represent the Company s internal projections, expectations or beliefs concerning, among other things, future operating results and various components thereof or the Company’s future economic performance.

The projections, estimates and beliefs contained in such forward looking statements necessarily involve known and unknown risks and uncertainties which may cause the Company’s actual performance anduncertainties which may cause the Company s actual performance and financial results in future periods to differ materially from any estimates or projections.

The Investment Environment

AGIP KCO – ‘Kashagan’ – 136 bn USD capex, 100 bn USD opex over 40AGIP KCO Kashagan 136 bn USD capex, 100 bn USD opex over 40 years. Recent dispute between RoK and Consortium has been resolved.

Future offshore projects in the Kazakh sector of the Caspian Sea will require i il d l t l d i t tsimilar development plans and investments.

Current NE Caspian vessel count ~ 150 likely growing to 300 - 325 by 2012.

Onshore seismic market approximately 120 mn USD in 2007. At its peak it is expected to grow to approximately 180 mn USD annually – driven by more 3D land surveys (KPO, TCO, reservoir maximization and life of field work). Nascent marine seismic market growing due to new offshore proprietary workNascent marine seismic market growing due to new offshore proprietary work.

Offshore infrastructure is limited. CSI Atash marine base project is one of the first private company efforts to address the need.

The Investment Case for CSIRight assets, right place, right time – CSI is well positioned to benefit from

local and regional investment climate.

Three business lines – marine vessel services, geophysical servicesand infrastructure development - allows for integrated product offering;and infrastructure development allows for integrated product offering;demand for services in the region growing rapidly.

Major Western companies are our clients/JV partners/investors (Saipem,AGIP CGGV it Sh ll) EBRD h id d l f d t k itAGIP, CGGVeritas, Shell); EBRD has provided loan for and taken an equitystake in the marine base project.

Strong year on year growth in 2007: 51% growth in revenues, 234% growthg y y g g gin EBITDA; 657% growth in net income. Equally strong 2008-2009 growth outlook.

Where We Work

2007 Revenues by BusinessGeophysical services and vessel operations account for

majority of revenue.

2%

Vessel Revenue Geophysical Revenue Infrastructure

38%

60%

Source – Company Data

60%

Marine Vessel Services2008 Fleet Deployment

Veritas Caspian LLP Saipem S.p.A.

Fugro

Current Offshore Projects

Marine Vessel ServicesA Growing and Diversified Client Base

7.00%

2007 Revenue by Client

44.00%

21.00%Veritas Caspian

Saipem

RXT44.00% RXT

Other

Source – Company Data

28.00%

Quarterly Vessel Revenue12

8

10

Mill

ion

US

D

6Q1 (Oct, Nov, Dec)

Q2 (Jan, Feb, Mar)

Q3 (Apr, May, Jun)

Q4 (Jul Aug Sep)

2

4Q4 (Jul, Aug, Sep)

Source – Company Data

02005 2006 2007 2008

Source Company Data

Annual Marine Vessel Revenue and EBITDA40

25

30

35

D

15

20

25

Vessel RevenueEBITDAM

illio

n U

SD

5

10

Source – Company Data and Estimates

-5

02006 2007 2008F 2009F 2010F

Source Company Data and Estimates

EBITDA is a non-GAAP financial measure consisting of net income before interest expense, income tax expense (benefit), depreciation and amortization. EBITDA is presented as a supplemental financial measurement in the evaluation of our business. EBITDA is widely used by investors, bankers and rating agencies to value, compare and rate companies and we provide the figure for their benefit. EBITDA should not be considered as a substitute for net income, income from operations, or net cash provided by operating activities prepared in accordance with GAAP.

Marine Vessel ServicesDrivers for Growth:

additional offshore projects increasing demand, utilization and rates for marine vessels.

demand for vessels suitable for NE Caspian greatly outstripping currentdemand for vessels suitable for NE Caspian greatly outstripping current supply.

expansion outside Kazakh territorial waters - Turkmenistan.streamer vessel requirement for fleet assets.

Competitive Advantage:

barriers to entry – shortage of suitable vessels, timing, environmental y g , g,standards.

strong reputation with western and local clients, experienced management.infrastructure assets controlled – marine base

Geophysical ServicesCapital expenditure on seismic acquisition is increasing in Kazakhstanacquisition is increasing in Kazakhstan.

Each license awarded has aseismic investment commitment.

Land – reshooting/enhancing existing Soviet seismic data sets plus virgin territory surveys resulting in new 2D and 3D work Higher endresulting in new 2D and 3D work. Higher end surveys for western oil companies also tendered as reservoir management becomes an issue for more mature fields. “Life of field” program.Marine – minimal marine seismic data exists, mostly over Kashagan. Significant TZ work to be done in NE Caspian.work to be done in NE Caspian.

Geophysical ServicesTat Arka LLP

land based seismic acquisition company wholly owned by CSI.two crews, modern equipment - Sercel 408, (3,700 channel total capacity).client requests becoming more and more sophisticated – high end surveys

generating greater revenue and profitability.

Kazmorgeophysica CJSC

marine seismic acquisition company 51% owned by CSI, management control.demand for proprietary surveys growing in NE Caspian – more offshore projects. JV with CGG Veritas – Veritas Caspian LLP – has agreement for offshore p g

Caspian data bank project for open acreage in Kazakh waters.well equipped – Sercel 428 OBC system plus Fairfield telemetry system.

Veritas Caspian LLPExclusive agreement to acquireand market seismic data for entire open acreage in KZ sector of the Caspian Sea.

2007 was year 2 of the project To2007 was year 2 of the project. Todate 2D surveys conducted.Expectations of 3D acquisitions in future years.

Annual work programs fully pre-funded by oil majors or by CGGVeritasCGGVeritas.

Data sale revenue not includedin estimates or financial projections.for CSI.

Quarterly Geophysical Revenue

14

16

12

14

illio

n U

SD

8

10

Q1 (Oct, Nov, Dec)

Q2 (Jan, Feb, Mar)

Q3 (Apr, May, Jun)

Q4 (J l A S )M

4

6 Q4 (Jul, Aug, Sep)

Source – Company Data

0

2

2005 2006 2007 2008

Annual Geophysical Revenue and EBITDA60

40

50

30

40

RevenueEBITDAill

ion

US

D

10

20M

Source – Company Data and Estimates

02006 2007 2008F 2009F 2010F

EBITDA is a non-GAAP financial measure consisting of net income before interest expense, income tax expense (benefit), depreciation and amortization. EBITDA is presented as a supplemental financial measurement in the evaluation of our business. EBITDA is widely used by investors, bankers and rating agencies to value, compare and rate companies and we provide the figure for their benefit. EBITDA should not be considered as a substitute for net income, income from operations, or net cash provided by operating activities prepared in accordance with GAAP.

Atash Marine Base

Atash Marine BaseA facility designed to address the lack of marine support infrastructure for

Kazakhstan’s booming offshore oil industryKazakhstan s booming offshore oil industry.

Jointly financed by CSI and the EBRD, it is an 80 million USD capital project.

Completed and fully operational by end of 2009.

Atash Marine BaseLand owned and facility developed by y p yCSI subsidiary Balykshy LLP.

Funding in place –• EBRD 32 million USD debt• EBRD 32 million USD debt • EBRD 10 million USD equity in Balykshy LLP

• Balance from CSI funds.

Construction commenced November 2007 –phase 1 completed end 2008, phase 2 end 2009.

Home port for Caspian Services fleet and open to third party users. JV opportunities.

Atash Marine Base Construction Activity

Atash Marine Base Revenue Projections35.00

25.00

30.00

Vessel Maint. Area Lease

15.00

20.00

lion

USD

Transportation Services

Mooring

Warehouse and Offices

Technical Services

5.00

10.00

Mill Technical Services

Water Supply

Fuel Supply

0.002009 2010 2011 2012 2013 2014

Year Source – Company Data and EstimatesYear

Total CSI Revenues – 2006 to 2010120

80

100

40

60 Total RevenueEBITDA

Mill

ion

US

D

20

40M

Source – Company Data and Estimates

* Total does not included CSI share of revenues from Veritas Caspian LLP data sales.

02006 2007 2008F 2009F 2010F

EBITDA is a non-GAAP financial measure consisting of net income before interest expense, income tax expense (benefit), depreciation and amortization. EBITDA is presented as a supplemental financial measurement in the evaluation of our business. EBITDA is widely used by investors, bankers and rating agencies to value, compare and rate companies and we provide the figure for their benefit. EBITDA should not be considered as a substitute for net income, income from operations, or net cash provided by operating activities prepared in accordance with GAAP.

CSI Revenues by Business – 2006 to 201060

50

30

40

Marine Vessels

Geophysical ServicesMill

ion

US

D

10

20

y

Infrastructure

Source – Company Data and Estimates

02006 2007 2008F 2009F 2010F

Company Structure

Share Price Impact Factors

General lack of enthusiasm 0.8$4.6

for small cap stocks andemerging markets.Fear factor – Kashagan, Russia.Maturing business with0.5

0.6

0.7

$3.8

$4.2

Maturing business with minimal financial history.

Turnaround underway.0.3

0.4

$3.0

$3.4

2007 Revenues - EBITDA, Net Profit both substantially improved over prior years.0.0

0.1

0.2

$2.2

$2.6

improved over prior years.2008 showing continued growth.

Oct 06 Nov 06 Dec 06 Jan 07 Feb 07 Apr 07 May 07 May 07 Jun 07 Jul 07 Aug 07

Volume, $mn, (r.s.) CSSV US,$ (l.s.)

ConclusionCaspian Services Inc. is well positioned to capitalize on the substantial

i t t i d b K kh t ’ ff h il i d tinvestment required by Kazakhstan’s offshore oil industry.

Demand for marine assets is forcing vessel charter and utilization rates higher.

Land based seismic activity will continue to be strong with margins remaining high.

Marine and transition zone seismic surveys moving up the value chain CSIMarine and transition zone seismic surveys moving up the value chain – CSI has assets in place to capture much of this business.

Veritas Caspian LLP – exclusive agreement, brand name partner, revenues not p g pfactored into current estimates or market valuation.

Marine base moves the company to the forefront of Kazakhstan’s offshore oil field service industryfield service industry.