Halter Marine Awarded Contract for Up to Four Fisheries Research Vessels.

Business Editors

GULFPORT, Miss.--(BUSINESS WIRE)--Jan. 18, 2001

Friede Goldman Halter, Inc., (NYSE: FGH), announced today that its vessel construction business unit, Halter Marine, Inc., had been informed by the offices of Senator Trent Lott (R-MS) and Senator Thad Cochran (R-MS) that it has been awarded a contract by the National Oceanic and Atmospheric Administration (NOAA) of the U.S. Department of Commerce for the detailed design and construction of the first of four Fisheries Research Vessels, designated the FRV-40 class. The contract also includes the provision of spare parts, technical services and options to build three additional ships. The total value of the base contract is $38.3 million: if all possible options are exercised, the total value of the contract could ultimately exceed $165 million.

Engineering of the first ship will begin immediately and construction will follow at Halter Marine's shipyard in Moss Point, Mississippi, with delivery scheduled in 36 months. It is expected that the options for additional vessels will be exercised as Congress incrementally appropriates funds for them. The contract is expected to create approximately 150 new jobs at the Halter Moss Point shipyard.

The FRV-40 class vessels will have an overall length of 208 feet, a beam of 49 feet and a molded depth of 28 feet. They will be designed and built to the requirements of the American Bureau of Shipping and upon delivery will be classed ABS A1, AMS, ACCU, DPS-1, unrestricted service, and Ice Class C0. The four ships will be based in Kodiak, Alaska; Woods Hole, Massachusetts; Newport, Oregon; and Pascagoula, Mississippi.

"We are extremely pleased that NOAA has chosen Halter for this very significant program." said John Alford, chief executive officer of Friede Goldman Halter. "NOAA's award reaffirms Halter's leadership position in the design and construction of scientific research and surveillance ships. Successful U.S. Navy programs such as the T-AGOS 13-18 ocean surveillance ships, the T-AGOS 23 SWATH ocean surveillance ship, the T-AGS 51-52 coastal hydrographic survey ships and the T-AGS 60-65 hydrographic survey ships gave NOAA confidence in our ability to build very quiet ships. In addition, the AGOR 23-25 oceanographic research ships for the University National Laboratory System, and the NOAA Research Vessel "Ronald Brown" demonstrated to NOAA our ability to design and build the worlds most advanced research ships."

Friede Goldman Halter is a world leader in the design and manufacture of 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 vessels for commercial and governmental markets); FGH Engineered Products (design and manufacture of cranes, winches, mooring systems and other types of marine 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 International 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-1 and the 1999 Annual Report on Form 10-K. 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.