Government Accounting Office -GAO- Denies Protest and Affirms Halter's Award of the LSV Contract

Business Wire, Sept 21, 2001

Business Editors

GULFPORT, Miss.--(BUSINESS WIRE)--Sept. 21, 2001

Friede Goldman Halter, Inc., (OTCBB: FGHLQ), announced today that its vessel construction business unit, Halter Marine, Inc., had been informed by the Government Accounting Office (GAO), in Washington, D.C. that the protest made by a competing shipbuilder was denied and the award affirmed to Halter Marine, Inc. The U.S. Army, Tank and Automotive Command (TACOM) of Warren, Michigan lifted its stop work notice earlier this week and work has begun on the detailed design and construction of the first of three Logistic Support Vessels, designated the LSV class. The contract also includes the provision of spare parts, technical services, and options to build two additional vessels. The total value of the base contract is $26.9 million; if all possible options are exercised, the total value of the contract could ultimately exceed $78 million.

Engineering of the first ship will begin immediately and construction will follow at Halter Marine's shipyard in Moss Point, Mississippi, with delivery scheduled in 24 months. It is expected that the options for additional vessels will be exercised as Congress incrementally appropriates funds for them. The contract is expected to create approximately 75 new jobs at the Halter Moss Point shipyard.

The LSV class vessels, dubbed ELSV (Enhanced Logistic Support Vessel) by Halter, will have an overall length of 313 feet, a beam of 60 feet and a molded depth of 19 feet. They will be designed and built to the requirements of the American Bureau of Shipping and upon delivery will be classed ABS Maltese Cross A1 Circle E, Maltese Cross AMS, Maltese Cross ACC, Maltese Cross APS, and NIBS. The three ships will be based in Hawaii and Baltimore, Maryland.

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 of vessels for commercial and governmental markets); FGH Engineered Products (design and manufacture of cranes, winches, mooring systems and other types of marine 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 and the 1999 Annual Report on Form 10-K. 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.