Release Details

MIDLAND, Texas, Aug. 5 /PRNewswire-FirstCall/ -- 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 an accredited private investor. The private placement raised 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 closing occurred on August 4, 2004.

The private placement includes restricted common stock and does not include any warrants. These shares represent approximately 11% of the outstanding 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, 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 http://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.

     For More Information, Contact:
     Wallace Sparkman, CEO
     800-580-1828

     Jim Drewitz, Investor Relations
     972-355-6070

SOURCE  Natural Gas Services Group, Inc.
    -0-                             08/05/2004
    /CONTACT:  Wallace Sparkman, CEO of Natural Gas Services Group, Inc.,
+1-800-580-1828; or Jim Drewitz, Investor Relations, +1-972-355-6070, for
Natural Gas Services Group, Inc./
    /Web site:  http://www.ngsgi.com /
    (NGS)

CO:  Natural Gas Services Group, Inc.
ST:  Texas
IN:  OIL
SU:

JC-AP 
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5271 08/05/2004 09:00 EDT http://www.prnewswire.com