Conrad Industries, Inc. Announcement.

Business Editors

MORGAN CITY, La.--(BUSINESS WIRE)--Jan. 19, 2000

Conrad Industries, Inc. (Nasdaq:CNRD) announced today that it expects to report a small loss for the quarter ended December 31, 1999 and does not expect earnings to exceed $0.22 per share for the year ended December 31, 1999.

William H. Hidalgo, President and CEO stated, &uot;Our earnings for the fourth quarter will be below the level we had previously expected primarily due to increased costs to complete a large vessel construction project. The increased costs resulted from the project taking longer to complete than previously anticipated.&uot;

Hidalgo stated, &uot;Although we are disappointed about our results for the third and fourth quarters of 1999, we remain cautiously optimistic about activity levels for the year 2000. We have generally been able to maintain our level of backlog by adding new projects as we finish other projects. We have recently signed a contract to build a 200-foot class lift boat hull with an option to build a second hull, both similar in design to a 200-foot class lift boat that we presently have under construction. The contracts are from repeat customers and the vessels are similar to vessels we have previously built. Bidding activity and commitments for new work remain active in the energy, other commercial and government sectors. Our repair customers in the energy sector anticipate an increase in the number of vessels they will repair or modify in the year 2000. This is good news for the repair segment of our business, which was hit hardest by the decline in the energy markets in 1998.&uot;

Conrad, founded in 1948, specializes in the construction, conversion and repair of marine vessels for commercial and government customers and the fabrication of modular components of offshore drilling rigs and floating production, storage and off loading vessels. The Company currently operates three shipyards located along the Gulf Coast in Morgan City and Amelia, Louisiana and Orange, Texas.

This press release contains forward-looking statements that are subject to a number of risks, uncertainties and assumptions, many of which are beyond the control of Conrad Industries, Inc. Should one or more of these risks, uncertainties or assumptions materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. These and other risks and assumptions are discussed in Conrad Industries, Inc.'s filings with the Securities and Exchange Commission, including Conrad Industries, Inc.'s Form 10-K.