Conrad Industries, Inc. Reports Earnings Expectations.

MORGAN CITY, La.--(BUSINESS WIRE)--Oct. 11, 1999--

Conrad Industries, Inc. (Nasdaq: CNRD) announced today that it expects to report earnings per share for the quarter ending September 30, 1999 of between $0.01 and $0.03 compared to earnings per share of $0.10 for the quarter ending June 30, 1999. For the quarter ending December 31, 1999 earnings per share are expected to be between $0.05 and $0.08. The Company expects earnings per share between $0.28 and $0.33 for the year ending December 31, 1999.

William H. Hidalgo, President and CEO stated, "Our earnings for the third and fourth quarters will be below the levels we had previously anticipated. Our repair and conversion segment continues to experience weak demand and price pressures due to the energy market and we have not experienced the increase in activity that we had anticipated nor do we see any significant increase until the first part of next year. Additionally during the third quarter, we had one vessel construction project that did not perform as we previously anticipated due to unforeseen delays and a billings adjustment at the end of the job due to a reduction in the final weight of the vessel. This resulted in increased costs being recognized in the third quarter thus reducing the gross profit for the quarter. Overall the job was still profitable."

Hidalgo stated "We continue to experience a high level of bid activity for vessel and barge construction and we are seeing positive indicators in the energy markets that contribute to us remaining cautiously optimistic about the year 2000 in both the vessel construction segment and the repair and conversion segment."

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.