NEW ORLEANS, LOUISIANA -- Avondale Industries, Inc. (NASDAQ-AVDL) announced that the Company filed a Registration Statement with the Securities and Exchange Commission relating to the offering of 3,000,000 shares of the Company s common stock currently owned by the Avondale Employee Stock Ownership Plan ( ESOP ). The registration statement covers an additional 450,000 shares granted by the ESOP to the underwriters as an over allotment option. Managing underwriters for the offering are Salomon Brothers Inc and Johnson Rice & Company, L.L.C. All the shares of common stock are being offered by the ESOP, and the ESOP has advised the Company that it plans to use the proceeds from the offering to diversify its investment portfolio. The ESOP, which was formed in 1985, currently owns 6.9 million shares of Avondale s common stock, representing approximately 49% of the 14.5 million shares outstanding and, upon completion of the offering, the ESOP will own approximately 23% to 27% of the outstanding shares. A Registration Statement relating to these securities has been filed with the Securities and Exchange Commission, but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the Registration Statement becomes effective. This shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Avondale Industries, Inc., headquartered in metro New Orleans, is one of the nation's leading marine fabricators. In addition to its shipbuilding operations, the Company specializes in boat construction and is a major repair contractor for commercial and Navy ships. It is also involved in the modular construction of plants and components for a variety of land-based industries.