Conrad Industries Appoints Lew Derbes CFO.

Business Editors

MORGAN CITY, La.--(BUSINESS WIRE)--Sept. 30, 2002

Conrad Industries, Inc. (Nasdaq:CNRD) today announced that the Board of Directors has named Lewis J. Derbes, Jr. as the company's new Vice President and Chief Financial Officer, effective September 30, 2002.

Lew has spent the past 5 years with Northrop Grumman's Avondale Industries, Inc., recently as Vice President and Controller. Lew joins Conrad with an extensive background in all areas of financial and accounting management, including SEC compliance and reporting. Prior to his service with Avondale, Mr. Derbes was an accountant with Deloitte & Touche LLP.

"We are delighted to have Lew join our team," said Kenneth G. ("Jerry") Myers, Jr., Conrad's President and CEO. "Lew brings a wealth of shipbuilding financial management experience that will serve Conrad well."

Conrad's current Chief Financial Officer, Cecil Hernandez, has elected to resign as CFO effective September 30, 2002 to pursue other business opportunities. Cecil will remain as an officer of the Company through an agreed upon transition period and will remain as a Director. Jerry Myers said, "Cecil was instrumental in taking the company public in 1998 and has played a significant role in making Conrad the success it is today. We wish Cecil the best in his future endeavors."

Conrad Industries, Inc., established in 1948 and headquartered in Morgan City, Louisiana designs, builds and overhauls tugboats, ferries, liftboats, barges, offshore support vessels and other steel and aluminum products for both the commercial and government markets. The company provides both repair and new construction services at its three shipyards located in southern Louisiana and Texas.