Company News
On Jun 28, 2011 the Company filed Current Report with the Securities and Exchange Commission (SEC) on the Form 8-K disclosing details of the Loan Retirement/Restructuring Term Sheet.

The report is available at the SEC web site by following the link below:

Alexey Kotov Appointed Chief Executive Officer of Caspian Services, Inc. CSI Management Team and Board Realigned to Meet Marine and Geophysical Services Opportunities in Caspian Sea Oil & Gas Market

Salt Lake City, Utah. August 6, 2010: Mr. Alexey Kotov has been appointed President and Chief Executive Officer of Caspian Services, Inc. ("CSI") succeeding Mr. Kerry Doyle, who has been appointed to the Company's Board of Directors and as a Member of the Company`s newly formed Executive Committee. Mr. Kotov will be supported by a new operational management team consisting of Messrs Arran Watson, Yuriy Vasilenko and Paul Roberts, General Managers of the CSI Marine Services, Geophysical Services and Real Estate and Infrastructure Development divisions, respectively. CSI believes the changes to the management team, will allow the Company to effectively react to the rapid developments in the oil and gas industry focused on the Caspian Sea.

Jeffrey Brimhall has also been appointed to the Company`s Board of Directors. Mr. Brimhall currently serves as a Senior Accountant for Resolute Energy Corp., a NYSE listed company based in Denver, CO. Mr. Brimhall is filling a vacant Board seat, while Mr. Doyle is replacing Paul Roberts who is stepping down from the Board to focus on operational management of the Company`s Real Estate and Infrastructure Development Division, including its recently certified marine base.

"Mr. Kotov has been with CSI for many years in the capacity of General Counsel and Corporate Secretary and knows the business inside and out having worked on its major client contracts and industry partnerships. He represent the next generation of leadership and will focus on the financial performance of the Company as it grows in line with the oil and gas industry in Kazakhstan, "said Mirgali Kunayev, Chairman of the Board of Directors. "I am honored to be given the opportunity to lead Caspian Services, Inc. It is great company with a reputation for customer service and professionalism. We will continue to serve both the multinational and domestic corporations prospecting and drilling in the Caspian Sea and onshore in Kazakhstan with marine vessel and geophysical services and marine base facilities. Most of all, I am proud of the 800 employees of Caspian Services who have made the Company a leader in its market. "said Alexey Kotov, newly elected Chief Executive Officer. Please refer to the Current Report on Form 8-K filed by Caspian Services, Inc. with the United States Securities and Exchange Commission on August 4, 2010 for additional details regarding the changes to the Company`s Board of Directors and management team. About Caspian Services, Inc.

Caspian Services, Inc. provides marine, geophysical and base services to the oil and gas exploration and production industry in the Caspian. Founded in 1998, Caspian Services, Inc. now has a fleet of 16 marine service vessels, onshore and transitional seismic surveying crews and a newly constructed marine base in Bautino Bay, Kazakhstan. With approximately 800 employees, Caspian Services has offices in Salt Lake City, Utah and Almaty, Aktau and Bautino Bay, Kazakhstan. Caspian Services, Inc. is listed on the Over-the-Counter Bulletin Board under the symbol CSSV.OB. For more information, please contact Caspian Services, Inc.`s Salt Lake City, Utah office at (801) 746-3700 and ask for the Corporate Secretary.
Caspian Services Inc. is focused on providing marine and geo-physical services in the Kazakh waters of the Caspian Sea. Founded in 1998 at Aktau on the shore of the Caspian Sea the company was set up by a group of Kazakh, British and USA nationals experienced in the marine services field. The company has seen a steady expansion over the last 10 years and now operates a fleet of 16 shallow draft vessels in the North Caspian Sea. These vessels are based in Caspian Services` recently completed "Atash Marine Base", located in Bautino bay on the western tip of the Mangystau peninsula. Caspian Services under the leadership of Mr. Alexey Kotov recent appointed as its President to succeed retiring Mr. Kerry Doyle and its newly restructured board of directors including Dr. Mirgali Kunayev, Kerry Doyle, Alexey Kotov, Valery Tolkachev, Jeffrey Brimhall has made long term sustainability and sound social and environmental practices a priority for their company. The company operates, as their name would suggest, in and around the Caspian Sea. This remarkable body of water is the world`s largest inland sea. Located on the western edge of Kazakhstan; it is bounded by Russia, Kazakhstan, Iran, Turkmenistan and Azerbaijan. Detached from the oceans of the world, the Caspian sustains a unique ecological balance.

The Caspian Sea is home to a number of species found nowhere else in the world including the Caspian Seal and the economically valuable Beluga Sturgeon. Through the "Convention for the protection of the marine environment of the Caspian Sea" the 5 littoral states have jointly committed to protecting the unique natural resources of the Caspian Sea.

Wildlife species: Caspian Seal, Caspian Tern, Beluga Sturgeon.

The Caspian convention makes it the responsibility of everyone who lives or works on, in, or near the Caspian Sea to protect and preserve the natural environment of the Caspian Sea. We discussed with Mr. Kerry Doyle and Environmental Advisor Dr. Sean Watson how that commitment has been incorporated into the Company`s activities and operations. Dr. Watson begins by explaining that Caspian Services follows a set of rigorous environmental policies that apply to all of its operations and activities in the Caspian Sea region. These policies are targeted at meeting the goal of zero long-term impact. The company believes that these policies have additional benefits in building competitive advantage and adding economic value. "The commitment to the projection of the environment is evident throughout the company", says Mr. Kerry Doyle. He further states "Our Quality, Health, Safety and Environmental QHSE management system is a key component of the business culture, and of the company`s competitive strength. This management system is used for every operation carried out by every employee. This type of comprehensive management system, when applied effectively, minimizes risks of accidents or mistakes and reduces the impact of operations on the environment".

Each of the 16 vessels operated on the Caspian Sea by Caspian Services follows these stringent safety and environmental standards, according to Environmental advisor Dr. Sean Watson. These standards range from `zero discharge and dumping at sea`, logging and reporting of fuel and water use, through waste generation and waste handling. Dr. Watson claims that more importantly, the company`s aim is to go beyond mere compliance with the law. "The health, safety and environmental policies employ the best practical standards and procedures even in the absence of any specific legal requirement to do so"

Protecting People

Safety first, minimizing hazards to clients, employees and contractors while operating in demanding environments is of the utmost importance to all of the Caspian Services. The Health and Safety Management system applies to all activities and its aim is to ensure zero accidents, injuries and cases of ill health. A look at their safety record over the last 3 years confirms this commitment is working.

"Caspian Services carries out continual monitoring of the physical environment to minimize adverse health effects for clients, employees and contractors", continues Dr. Watson. "For example, asbestos and noise surveys are carried out for all vessels, and all accommodation and offices are checked for the presence of radioactive materials".

Protecting the Environment, Greenhouse Gas Emissions.

- How does Caspian Services go above and beyond the statutory requirements of operating in the Caspian region? Kerry Doyle then explains an example of the companies proactive policies: "Caspian Services prepared its first inventory of Greenhouse Gas emission report in 2009. This inventory was developed to understand the impact of the company`s operations on the global environment. Building on this inventory, Caspian Services has developed and implemented a Greenhouse Gas management policy and established a system for monitoring and reporting of greenhouse gas emissions."

He further states. "The inventory showed that there had been a net reduction in the intensity of direct GHG emissions over the period 2006 to 2008, from 559 to 471 tonnes of CO2 per $1M revenue. This is comparable to other carbon-intensive companies in the oil and gas industry."

Polluting Gases

The operation of Caspian Services fleet of marine vessels involves the burning of fossil fuels and the emission of exhaust gases. These exhaust gases contain, sulfur oxides, nitrogen oxides, carbon monoxide, volatile organic compounds, and particulate matters, all of which are contributors to localized smog and acid rain effects. How are Caspian Services mitigating these local effects? Dr. Watson explains that Caspian Services recognizes the importance of reporting and managing these emissions to minimize the undesired effects of their activities on the environment. T he quantity of sulfur oxides produced in exhaust gases is directly related to the quantity of sulfur in the fuel. The International Maritime Organization (IMO) has introduced regulations limiting the maximum sulfur content of fuel to 4.5%. Caspian Services` vessels already use a clean distillate No.2 fuel with a low sulfur content of 0.25%, and are ready for future reductions in the limits on sulfur, according to Dr Watson. He continues; "Nitrogen oxides mission emerge from the combustion process in engines and are also regulated by the IMO. The total quantity of these emissions increased over the last 3 years as a result of the company`s growth and the addition of new vessels, however increased efficiencies have resulted in the emissions per $ of revenue dropping 15% from 2006 levels."

As part of the International Convention on the Prevention of Pollution from Ships the emission of ozone depleting substances is prohibited, including halons and chlorofluorocarbons (CFCs). Mr. Doyle explains that the company complies with all national and international regulations regarding the use of ozone depleting substances and follows manufactures maintenance recommendations to minimize the leakage of refrigerant gases. In addition Caspian Services uses only industry certified companies to carry out regular maintenance works and the recycling of gases. "Just another example of our striving to meet the goal of zero long-term impact" says Kerry.

Ballast Water

The Caspian represents an area of high biodiversity importance and is particularly vulnerable to invasive species due to its closed nature and unique ecosystems. As global maritime traffic has expanded over the last decades, so have the harmful effects of invasive species being carried from one part of the world to another, this problem has its specific effects in the Caspian Sea as well. Ballast water, used by vessels to provide stability has been a major contributor to the transmission of such invasive species. Ballast water is often sourced from areas rich in marine life, transported and then discharged into different marine ecosystems. This activity can result in the introduction of new species, threatening the ecological balance and can act as a medium for the spread of epidemic diseases. How is Caspian Services mitigating the risks of invasive species destroying the delicate ecology of the Caspian? "Caspian Services has recognized the importance of proper handling of ballast water for its vessels entering and exiting the Caspian Sea and operates its vessels to meet both the national and international standards.", Mr Doyle continues: "Currently all Caspian Services` vessels entering the Caspian Sea empty their ballast tanks in the Sea of Asov and then fill them up in the Volga canal prior to entering the Caspian Sea."

Dr. Watson explains that ballast water logs are also kept on all vessels, the use of ballast water is minimized and internal ballast transfer is used whenever possible. Ballast water management is to become progressively more regulated over the coming years under the 2004 IMO `Convention for the Control and Management of Ships` Ballast Water and Sediments` and Caspian Services Group is ready to meet these requirements." Waste handling

Caspian Services` vessel operations generate several different types of waste, including oil waste, bilge, garbage, sewage, and various amounts of hazardous waste. Caspian Services has implemented a waste management program throughout it`s fleet, to ensure all waste products are logged, separated and handled in a responsible and environmentally sound manner. Mr. Doyle: "Our offshore marine services subsidiary Caspian Services Group implements a strict `zero dumping and discharge at sea` policy." He further states. "Caspian Services Group constantly strives to minimize the environmental impacts from its waste by reducing the amount of waste generated and improving waste handling. All garbage is segregated onboard to ensure that recyclable waste can be reused when appropriate recycling facilities come online. All wastewater and garbage is discharged at ports using state approved and audited waste contractors in accordance with local and national regulations. The operation of vessels also results in generation of hazardous waste, such as batteries, light bulbs, medical waste, chemicals etc. This waste is segregated and disposed of by waste contractors approved to handle hazardous waste."

"Quantities of solid wastes generated have increased as a result of the company`s growth and the addition of new vessels but we have become more efficient and produce less waste per $ of revenue." Dr. Watson says. "Records show that solid waste generation intensity has decreased from 37 to 23 per million $ of revenue since 2006."

Atash Marine Base

Caspian Services` newly constructed `Atash Marine Base` at Bautino bay in Mangistau Region of Kazakhstan is being operated to meet or exceed both Kazakhstan statutory requirements and strict EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (EBRD) standards. As a condition of Marine base financing the environmental performance of the project is being closely monitored and audited by the EBRD. "There have been no significant environmental impacts from the construction and operations of the base", says newly appointed President of Caspian Services Mr. Alexey Kotov. "Only three activities during base construction: dredging, breakwater / wharf construction, and sea reclamation had a localised impact on the marine environment in the immediate vicinity of the base. Mitigation measures and working practices effectively reduced the impact of these activities."

"Around 20 households in Atash village, near the marine base, are experiencing impacts from traffic on the road that passes through their village", Mr. Kotov explains, "however the area has long been reclassified as industrial and residents resettlement plans are in place and being implemented by the local government in close cooperation with private operators in the region". These impacts are increases in noise, vibration, air pollution (including dust) and the risks of injuries to pedestrians, especially children. "Mitigation measures have effectively reduced these impacts", he continues. Monitoring of noise, traffic and residents opinion surveys are being carried out to evaluate the mitigation measures and other measures will be introduced if further impact reduction is needed. Are measures in place to ensure that there are no long term or unexpected impacts from construction of the base?." Although no significant impacts are thought to remain after introduction of mitigation measures, the Base Operator is committed to monitor the local natural and socio-economic environment to make sure that the significance of the impacts does not increase. For this the Base Operator maintains an effective environmental and social management system" CEO Mr. Kotov states.

Doing it `right`

"Caspian services are moving with the times and working to protect the interests of their shareholders, stakeholders and both the local and global environment and I am confident that under the new leadership the company will continue to successfully strive under the leadership of new management and renewed board of directors." Mr. Doyle, company`s outgoing President and Chief Executive concludes.