Bouygues Offshore Reports 1998 Net Sales.

MONTIGNY-LE-BRETONNEUX, France--(BUSINESS WIRE)--Feb. 10, 1999--

1998 net sales : + 12%

record backlog end of 1998 : +81% at

Euros 697 million (US $183 million (1))

4th Quarter net sales : +16%

Bouygues Offshore S.A. (NYSE: BWG) announced that its net sales for 1998 reached Euros 849.8 million (US$ 991.2 million (1)). Tecnoprojecto Internacional, the maintenance company specializing in electricity and instrumentation acquired in August 1998, reached a level of sales of Euros 6.9 million in 1998.

Herve Le Bouc, Chief Executive Officer, commented: "Despite the decrease in oil prices, the level of backlog at the end of 1998 reached a record level of Euros 697.2 million (US$ 813.4 million(1)) which gives us good visibility on net sales for 1999. 74% of the backlog relates to project work for 1999, and 26% for 2000 and thereafter. It does not include the Euros 135 million contract signed with Shell Petroleum Development Company of Nigeria (Odidi Associated Gas Gathering) in January, 1999 which will be integrated in the backlog at the end of the first quarter." -0-

Year to date analysis :


                  Twelve months       Twelve months     Twelve months
                     ended                ended             ended
                   12/31/1998          12/31/1998        12/31/1997
                     US $(1)              Euros             Euros
Millions -unaudited
Oil & Gas
 Contracting
Net Sales             715.4               613.3             567.4
New Orders          1,117.2               957.7             491.9
Backlog (end
 of period)           682.9               585.4             241.0

Maintenance
 Services
Net Sales             169.8               145.6             107.6
New Orders            171.2               146.8             125.3
Backlog (end
 of period)            44.7                38.3              37.1

Maritime and
 River Works
Net Sales              82.7                70.9              33.1
New Orders             59.3                50.8              20.3
Backlog (end
 of period)            77.6                66.5              86.6

Liquefied
 Gases
Net Sales              23.3                20.0              51.5
New Orders              8.4                 7.2               6.5
Backlog (end
 of period)             8.2                 7.0              19.8

Total net
 sales (2)            991.2               849.8             759.6
Total new
 orders             1,356.1             1,162.5             664.0
Total backlog
 (end of period)      813.4               697.2             384.5

(1)  US$ net sales, new orders and backlog are translated at an
     exchange rate of Euro 1 = US$ 1.1665 which is the rate on
     December 31, 1998.

(2)  1998 net sales included Euro 41.9 million of operating costs
     billed directly to single project joint ventures or reimbursable
     expenses billed to customers, compared with Euro 42.5 million in
     1997.


Quarterly analysis :


                     Fourth        Fourth        Third        Fourth
                    quarter       quarter       quarter       quarter
                     ended         Ended         ended         ended
                   12/31/98       12/31/98      9/30/98      12/31/97
                    US $(1)        Euros         Euros         Euros

Millions - unaudited
Oil & Gas
 Contracting
Net Sales            231.2         198.2         144.8         166.9
New Orders           251.5         215.6         450.3         100.0
Backlog (end
 of period)          682.9         585.4         568.0         241.0

Maintenance
 Services
Net Sales             46.6          40.0          42.5          32.9
New Orders            38.1          32.7          49.1          34.3
Backlog (end
 of period)           44.7          38.3          45.6          37.1

Maritime and
 River Works
Net Sales             23.8          20.4          23.8          13.7
New Orders            25.3          21.7           4.5           3.3
Backlog (end
 of period)           77.6          66.5          65.2          86.6

Liquefied
 Gases
Net Sales              3.4           2.9           4.3          11.0
New Orders             2.1           1.8           0.8           3.7
Backlog (end
 of period)            8.2           7.0           8.1          19.8

Total net
 sales (2)           305.0         261.5         215.4         224.5
Total new
 orders              317.0         271.8         504.7         141.3
Total backlog
 (end of period)     813.4         697.2         686.9         384.5

(1)  US$ net sales, new orders and backlog are translated at an
     exchange rate of Euro 1 = US$ 1.1665 which is the rate of the
     Euro on December 31, 1998.

(2)  Fourth quarter 1998 net sales included Euro 16.8 million of
     operating costs billed directly to single project joint ventures
     or reimbursable expenses billed to customers, compared with Euro
     9.0 million in the third quarter 1998 and Euro 6.7 million in the
     fourth quarter 1997.

Fourth quarter net sales increased 16% to Euros 261.5 million from Euros 224.5 million in 1997. Herve Le Bouc, Chief Executive Officer, commented: "Our yards and barges had a similar level of utilization in the fourth quarter as in the first three quarters of 1998. Both our Oil and Gas Contracting and Maritime and River Works business segments experienced backlog increases due to the signing of a number of smaller contracts (individually less than Euros 20 million)."

Bouygues Offshore S.A. is a leading international contractor serving the oil and gas industry, specializing in providing integrated solutions for the design, construction, installation and management of offshore and onshore oil and gas production-related turnkey projects. The Company also provides maintenance services to the oil production industry, engages in high-end maritime and river-related civil works projects and designs and constructs liquefied natural gas (LNG) import terminals as well as storage tanks.

The Company's comments concerning its estimated net sales for the full year 1999 are forward-looking statements that involve a number of risks and uncertainties. Although the Company believes that backlog is a reasonably reliable indicator of future net sales, postponements or cancellations of previously awarded contracts or delays in the completion of ongoing projects could negatively impact net sales. In addition, other factors that could cause the Company's net sales to differ materially include the following : fluctuations in the level of oil and gas industry spending; the Company's ability to obtain additional contracts in 1999; risks involved in doing business abroad (such as civil disturbances, adverse government actions, currency fluctuations and devaluations and economic and governmental instability); risks of loss or damage of its two largest barges; adverse weather conditions at offshore locations; and fluctuations in exchange rates (primarily the US dollar versus the Euro); and technical and other risks involved in the execution of contracts.