Salt Lake City, Utah (PR Newswire) – Caspian Services, Inc. (“Caspian”) (OTC Bulletin Board: “CSSV.OB”) announces that the European Bank for Reconstruction and Development (“EBRD”) and Balykshi LLP (“Balykshi”) have entered into agreements to increase the potential financial commitment of EBRD to help fund the development of a private-sector marine base being developed by Caspian. Balykshi is a wholly-owned subsidiary of Caspian Real Estate Limited which is a wholly-owned subsidiary Caspian.

On June 28, 2007 Balykshi and EBRD agreed to amend the Loan Agreement entered into by them in December 2006 to increase the amount of funds EBRD has committed to loan Balykshi from $24 million to $32 million. The parties also entered into an Investment Agreement pursuant to which EBRD will make an equity investment in Balykshi of up to $10 million. The loans and the equity investment are contingent upon Caspian providing $29.8 million in funding to Balykshi. The funding is designated for the development and construction of the Caspian marine base in the Bay of Bautino in the Kazakhstan sector of the Caspian Sea.

Paul Roberts, Director of Balykshi, said, “the signing of the financing agreements with the EBRD represents the culmination of almost three years of planning, design and project financing arrangements for the base. This exciting and important infrastructure development will enable Caspian to provide an unparalleled range of services to the oil industry exploring the massive reserves of the Kazakhstan sector of the North Caspian Sea. The base is an environmental milestone in the region, designed to provide a clean, efficient ship to shore transfer of fuel, sewage, waste, goods, inter alia mitigating the handling exposure. Longer term it is envisaged that the base will house an oil spill response unit to further enhance Kazakhstan’s capability.”

Peter Reiniger, EBRD Business Group Director, underlined that the project is the first infrastructure project in Kazakhstan to be sponsored by a fully private company. “The EBRD will contribute to demonstrate that there is room for private players in the rapidly expanding industry servicing the needs of oil and gas companies.” Mr. Reiniger added, “the Bank’s involvement will also guarantee that highest environmental standards are being met during construction and operation.”

Caspian Services, Inc. is an oilfield service company providing a broad range of services in the Caspian Sea region of western Kazakhstan. The Company provides geophysical and seismic data acquisition services; maintains a fleet of vessels that it commissions to oil and gas exploration companies engaged in exploration and development activities in the north Caspian Sea and is building a marine base facility in the Port of Bautino. The Company maintains corporate offices in Almaty, Kazakhstan, Aktau, Kazakhstan and Salt Lake City, Utah

For Further Information Please Contact:

Terrance J. Powell
Vice President, Investor Relations
29/6 Satpaev Street
9th Floor, Hyatt Regency Hotel
Almaty, 050040
Republic of Kazakhstan
Tel – 7 3272 508 478 / Fax – 7 3272 508 479
Email – tpowell@caspianservices.kz

The information contained in this release includes forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. Certain statements contained herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied. Forward-looking statements involve risks and uncertainties, including but not limited to, such risks as the implementation of business plans, contract performance, sufficiency of funds and other risks described in the Company's periodic reports on file with the Securities and Exchange Commission.