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[PARADIGM GEOPHYSICAL LOGO]


            PARADIGM GEOPHYSICAL STRENGTHENS ITS FINANCIAL STRUCTURE

    COMMITTED FINANCING OF $30 MILLION, WITH PRIVATE PLACEMENT OF $8 TO $10
               MILLION CONVERTIBLE DEBENTURES AT $7.50 PER SHARE

Tel Aviv, Israel, October 11, 2001: Paradigm Geophysical Limited (NASDAQ:PGEO)
announced today that it had reached agreements that strengthen its financial
structure, resulting in a total of at least $30 million in committed funding
sources.

The Company today signed an agreement with FIMI pursuant to which the Company
would issue to FIMI convertible debentures at an initial conversion price of
$7.50 per share, subject to certain upward and downward price adjustments.
FIMI would provide the Company a 5-year $8 to $10 million loan, with the
option for up to an additional $3.75 million after 24 months, subject to
certain terms and conditions. Annual interest rate is LIBOR minus one percent.
The agreement is subject to certain closing conditions.

The Company has also recently completed negotiations for committed credit lines
from its banks for a total of $22 million in short- and medium-term loans and
guarantees, at annual interest rates of between LIBOR plus one to
one-and-a-half percent, replacing the previous credit line.

Brian Berman, Paradigm's Chief Financial Officer commented, "We are very
pleased to have successfully diversified and expanded our financial resources.
Given the present uncertainties in both the financial and energy markets, the
Company believes it is important to strengthen our structured corporate
financing under favorable terms. These committed resources will be available
for working capital and capital goods investment, and also for strategic
opportunities that may arise in the future."

Ishay Davidi, Managing Director of FIMI commented, "Paradigm's past
performance, our expectations of the Company's future prospects, and its strong
management team, are consistent with FIMI's investment criteria."

ABOUT PARADIGM

Paradigm Geophysical provides information solutions to the leaders of the oil
and gas industry worldwide, offering technical software solutions and
product-driven services to companies involved in the exploration & production of
oil and gas and to oilfield service companies. The company has a global network
of sales, users' support and services with 20 offices in 16 countries, serving
all major oil- and gas-producing provinces in the world.

Paradigm Geophysical(R) and the Paradigm Geophysical logo are the registered
trademarks of Paradigm Geophysical Ltd.
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Recent press announcements are available on Paradigm's web site:
www.paradigmgeo.com.

ABOUT FIMI

FIMI is a leading Israeli investment fund focusing primarily on two types of
transactions: leverage buyouts, usually in conjunction with management; and
mezzanine investments. To date FIMI has invested amounts in excess of $250
million in 23 companies, and has additional amounts available for new
investments aggregating in excess of $200 million.

The Fund's general partnership is controlled by MassMutual Life Insurance
Company, Israel Discount Bank Ltd, a investor group led by Marshall D. Butler,
together with the fund's management team lead by Ishay Davidi. FIMI's investors
are mainly from the United States and Israel, including banks, insurance
companies, investment companies and provident funds. Web site: www.fimi.co.il

SAFE HARBOR STATEMENT:

Certain statements contained in this press release are forward-looking in
nature. These statements can be identified by the use of forward-looking
terminology such as "believes," "expects," "may," "will," "should," or
"anticipates" or the negative thereof or comparable terminology, or by
discussions of strategy. The company's business and operations are subject to a
variety of risks, and uncertainties and other factors. Consequently, actual
results may materially differ from those projected stated by any forward-looking
statements. Such risks, uncertainties and other factors that could cause actual
results to differ from those projected include, but are not limited to, the
following: (1) future capital expenditures by oil and gas companies (2)
fluctuations and absolute levels of international oil prices, (3) the need for
increased Company investment to support product and new services introductions,
(4) the company's ability to raise needed additional capital, (5) rapid
technological changes that could make the company's products less desirable or
obsolete, (6) market acceptance of the Company's products and services, (7)
changes in product sales mix (8) product transitions by the Company and its
competitors, (9) the impact of competitive products and pricing, (10) currency
fluctuations. These as well as other risks and uncertainties, are discussed in
greater detail in the Company's filings with the Securities and Exchange
Commission, including its most recent 20-F filed on June 29, 2001, its 2000
Annual Report and its regular Quarterly Reports. The company makes no commitment
to revise or update any forward-looking statements in order to reflect events or
circumstances after the date any such statement is made.
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CONTACTS:

INVESTOR RELATIONS

PARADIGM GEOPHYSICAL
Phone: +972-9-970-9306
Fax: +972-9-970-9319
e-mail: ir@paradigmgeo.com

THE RUTH GROUP--USA
Denise Roche
Phone: +1-646-536-7008
Fax: +1-646-536-7100
e-mail: droche@theruthgroup.com

FIMI
Tel: +972-3-5652244
Fax: +972-3-5652245
e-mail: fimi@fimi.co.il