Paradigm Resolves Foreign Corrupt Practices Act Issues With US Department of Justice

AMSTERDAM, Netherlands, Sept. 24 /PRNewswire/ -- Paradigm B.V. ("Paradigm"), a leading provider of enterprise software solutions to the global oil and natural gas exploration and production industry, entered into a letter agreement today with the United States Department of Justice ("Department") to resolve issues surrounding the agreement to make, and the making of, improper payments by Paradigm's employees and agents to government officials in various countries between 2002 and 2007. No civil or criminal charges were levied against Paradigm in resolving this matter, which was voluntarily disclosed to the Department. As part of the letter agreement, Paradigm will implement and enhance its internal controls, retain outside compliance counsel, cooperate fully with the Department, and pay a $1 million penalty.

Paradigm discovered the improper payments during due diligence being conducted in connection with its anticipated initial public offering. Paradigm then retained the law firm Skadden Arps Slate Meagher & Flom LLP ("Skadden Arps"), which has significant expertise regarding Foreign Corrupt Practices Act issues, to conduct a thorough, multi-country internal investigation into the activity and make a voluntary disclosure to the US government.

The conduct at issue did not involve current senior management. Nevertheless, Paradigm accepted vicarious liability for the conduct of certain employees and agents, and entered into the letter agreement with the Department to resolve these matters promptly and fully. Paradigm management is committed to ethical behavior and has demonstrated that commitment through the handling of this matter and the retention of Skadden Arps as compliance counsel. Indeed, in its press release the Department acknowledged and credited Paradigm's extensive investigation, self-reporting, and cooperation in the settlement agreement, with the Assistant Attorney General commending Paradigm for how it handled the matter.

Paradigm's software enables our customers to locate new oil and natural gas reservoirs and optimize production from new and existing reservoirs. Our customers use our integrated software suite to create dynamic digital models of the Earth's subsurface by analyzing and interpreting vast amounts of data from a wide variety of sources. We also provide strategic consulting services that utilize our software applications to enhance our customers' exploration and production workflows and assist them in realizing greater returns on exploration and production activities.

For more information, contact John Allen, EVP and General Counsel, by phone at (713) 393-4866 or by e-mail at jallen@paradigmgeo.com.

About Paradigm(TM)

Paradigm B.V. (www.pdgm.com) helps global oil and gas companies locate new reserves and optimize production in complex geological areas. Paradigm's technology advances the science of hydrocarbon detection with solutions in seismic data processing and subsurface imaging, prospect interpretation and modeling, reservoir characterization, and well planning and drilling. These exploration and production solutions operate in an open environment with connectivity to third-party data stores to accelerate project creation and turnaround. Paradigm has a global network of sales, services and user support, serving major oil and gas producing regions around the world. For additional information visit Paradigm's website at www.pdgm.com.

The following are trademarks or registered trademarks of Paradigm B.V. or of its affiliates (collectively, "Paradigm"): Paradigm, Paradigm logo and/or other Paradigm products referenced herein. All other trademarks are owned by their respective owners.

Forward-Looking Statements

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