FGH Announces Two New Contracts.

Business Editors

GULFPORT, Miss.--(BUSINESS WIRE)--Oct. 10, 2001

Halter Marine, Inc. the vessel segment of Friede Goldman Halter, Inc. (OTCBB: FGHLQ), announced today that it has signed a contract with an undisclosed customer to build a 332' x 74' x 25', double-skin, clean oil tank barge with an estimated 80,000 BBL capacity. This vessel meets the requirements of the Oil Pollution Act of 1990 (OPA 90). Double skin barges and tankers are gradually replacing the single skin fleet, and are more "environmentally friendly"

This barge is similar in design to one currently under construction at the Halter Gulfport, Miss. facility.

Construction will begin at Halter's Gulfport, Miss. facility and take approximately 12 months. Although no new jobs will be created, the project is expected to sustain the facility's current workforce. In recent years, Halter has built 88 similar barges, and currently holds contracts and options for an additional 8 vessels.

Anil Raj, Chief Operating Officer said, "With multiple shipyards, our Halter Marine Company has the nation's largest experienced workforce and capacity for building double-skin barges. We are able to offer deliveries to meet the deadline and constraints of the Oil Pollution Act of 1990."

The Shipbuilders Council of America (SBC), in its October 3, 2001, statement, echoed earlier warnings from the Maritime Cabotage Task Force and the National Defense Transportation Association's Sealift Committee that construction of double-hulled tankers must increase dramatically to avoid a shortage of US-flagged ships. It is anticipated that demand could exceed supply by as much as 24% in the next three years.

Friede and Goldman, Ltd. the design engineering segment of Friede Goldman Halter, has also been awarded a new contract with a major drilling contractor to perform the design engineering for the upgrade of a drilling unit. The upgrade includes a new cantilever beam design as well as reinforcement of the hull.

The two new contracts will have a value of approximately $7.5 million.

Friede Goldman Halter designs and manufactures 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 ocean-going vessels for commercial and governmental markets), FGH Engineered Products Group (design and manufacture of cranes, winches, mooring systems, and marine deck 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 Halter, 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-3, the 1999 Annual Report on Form 10-K, and subsequent Forms 10-Q. 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.