FGH Advances Construction of Semisubmersibles & Streamlines Operations

Business Wire, Oct 2, 2001

Business Editors

GULFPORT, Miss.--(BUSINESS WIRE)--Oct. 2, 2001

Friede Goldman Halter, Inc. (OTCBB:FGHLQ) today announced that its Friede Goldman Offshore subsidiary has reached an agreement with Petrodrill IV Ltd. and Petrodrill V Ltd. ("Petrodrill") to advance the construction of two Amethyst-class deepwater semisubmsersible drilling rigs.

Friede Goldman will work, at the customer's direction, and operate on a cost-reimbursable basis with contractually established rates for equipment, personnel, and labor. The agreement is expected to generate greater security and additional employment opportunities for the local workforce. Preliminary estimates place work for this phase of completion at four months for the Company's Pascagoula, Mississippi facility and five months at the Orange, Texas facility. Petrodrill may opt to add additional phases.

FGH also announced plans to consolidate its ongoing Pascagoula, Mississippi offshore projects at the East Facility on Greenwood Island. The West Bank facility will undergo a restoration and upgrade during the temporary closure.

According to Offshore Group President Ron Schnoor, "With as many as six oil rigs moored at the docks over the past several years, FGO has been unable to allow for maintenance dredging. We have approximately $500,000 in the port's coffers specifically designated for dredging of the basin alongside our docks at the West Bank, so this is the perfect opportunity to carry out that project at no cost to the Company."

The West Bank facility renovation is just one example of the numerous initiatives that the Company is taking to support its goals of cost-effective, stable, and well-managed business operations.

Friede Goldman Halter is a world leader in the design and manufacture of equipment for the maritime and offshore energy industries. Its operating units are Friede Goldman Offshore (construction, upgrade and repair of drilling units, mobile production units, and offshore construction equipment), Halter Marine (construction and repair of ocean-going vessels for commercial and governmental markets), FGH Engineered Products Group (design and manufacture of cranes, winches, mooring systems, and marine deck equipment), and Friede & Goldman Ltd. (naval architecture and marine engineering).

Note: This press release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of The Securities Act of 1933, as amended, and Section 21 E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Friede Goldman Halter expects, believes or anticipates will or may occur in the future, are forward-looking statements. These statements are based on certain assumptions and analyses made by Friede Goldman International Inc. in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Friede Goldman Halter and which are discussed in Friede Goldman Halter's Registration Statement on Form S-1, the 1999 Annual Report on Form 10-K, and the company's most recently filed Form 10-Q. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.