NEW ORLEANS, LOUISIANA -- Avondale Industries, Inc. (NASDAQ/NMS-AVDL) today announced the award of a $206.4 million contract for construction of an additional Strategic Sealift ship for the U.S. Navy. After consideration of certain additional components and cost escalations, the contract is expected to total more than $235 million. This represents the fourth ship which Avondale has now been awarded in the Sealift program, a multi-ship initiative intended to support the nation's ability to deploy military materials and equipment quickly throughout the world. The contract Avondale was awarded in 1993 for the initial Sealift ship contained options for five additional vessels. The remaining options covering the other two ships are exercisable over the next two years. Avondale was informed of the award by its Congressional delegation including House Appropriations Committee Chairman Bob Livingston (R-LA) and Senator J. Bennett Johnston (D-LA) whose committees funded this ship and U.S. Representative William Jefferson (D-LA) whose House National Security Committee authorized this ship. Other area lawmakers including U. S. Representative Billy Tauzin (R­LA) voted for this ship on the House floor. Work on the first Sealift ship is underway, and delivery is scheduled for early 1998. Delivery of the second and third ships is set for 1998 and early 1999. Delivery for the fourth ship announced today is set for 1999. Avondale's peak production on the Sealift vessels is anticipated to involve the direct employment by the Company of approximately 3,000 individuals. Albert L. Bossier, Jr. Chairman and Chief Executive Officer, remarked, "The Navy's decision to exercise the option for this Sealift ship increases Avondale's total backlog to more than $1.4 billion. The Sealift program is very important to Avondale and represents the cornerstone of the Company's business for the next several years." 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.