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Natural Gas Services Group, Inc. Increases Line of Credit From $2 Million to $10 Million

Posted on: Wednesday, 11 January 2006, 15:00 CST

MIDLAND, Texas, Jan. 11 /PRNewswire-FirstCall/ -- Natural Gas Services Group, Inc. , a leading gas compression equipment and services provider to the natural gas industry, announces it has entered into a Sixth Amended and Restated Loan Agreement with Western National Bank of Midland, Texas. Under this agreement, the Company's revolving line of credit was renewed, the maturity was extended from January 1, 2006 to December 1, 2006 and the principal amount the Company is able to borrow under the revolving line of credit was increased from $2.0 million to $10.0 million, subject to borrowing base limitations.

Steve Taylor, Chairman, President and CEO of Natural Gas Services Group, Inc., said, "We are very pleased to have been able to extend and increase our revolving line of credit with Western National Bank. This increase in our borrowing capacity is another step to provide us with additional funds to support our operating and expansion activities."

About Natural Gas Services Group, Inc.

NGS is a leading provider of small to medium horsepower compression equipment to the natural gas industry with a primary focus on the non- conventional natural gas production industry, i.e., coalbed methane, gas shales and tight gas. The Company manufactures, fabricates and rents natural gas compressors that enhance the production of natural gas wells and provides maintenance services for those compressors. In addition, the Company sells custom fabricated natural gas compressors to meet specific customer requirements. The Company also manufactures and sells flare systems for gas plant and production facilities. NGS is headquartered in Midland, Texas with manufacturing facilities located in Tulsa, Oklahoma, Lewiston, Michigan and Midland, Texas and service facilities located in major gas producing basins in the U.S.

For more information visit the Company's website at http://www.ngsgi.com/ .

Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause NGS's actual results in future periods to differ materially from forecasted results. Those risks include, among other things, the loss of market share through competition or otherwise; the introduction of competing technologies by other companies; a prolonged, substantial reduction in oil and gas prices which could cause a decline in the demand for NGS's products and services; and new governmental safety, health and environmental regulations which could require NGS to make significant capital expenditures. The forward-looking statements included in this press release are only made as of the date of this press release, and NGS undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. A discussion of these factors is included in the Company's Annual Report on Form 10-KSB filed with the Securities and Exchange Commission.

For More Information, Contact: Jim Drewitz, Investor Relations 972-355-6070

Natural Gas Services Group, Inc.

CONTACT: Jim Drewitz, Investor Relations, +1-972-355-6070, for NaturalGas Services Group, Inc.

Web site: http://www.ngsgi.com/

Source: PRNewswire-FirstCall

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