NEW ORLEANS, LOUISIANA -- Avondale Industries, Inc. (NASDAQ/NMS-AVDL) announced today that it has reached a settlement with the U.S. Navy on a previously announced outstanding Request for Equitable Adjustment (REA) relating to a contract to build four MHC-51 Coastal Minehunters. The settlement is consistent with Avondale's previously recorded estimate of the amounts recoverable under the REA and will enable Avondale to complete the program on a break-even basis going forward. The first of the four fiberglass minehunters was delivered to the Navy in August 1995 while the remaining three ships are scheduled for completion and delivery during 1996 and early 1997. Mr. Albert L. Bossier, Jr. Chairman and Chief Executive Officer acknowledged the efforts of Congressman Bob Livingston (R-LA) and U. S. Senator J. Bennett Johnston (D-LA) for their help in appropriating the funds used for the purpose of reaching this settlement. In addition, the leadership of Congressman Bill Jefferson (D-LA), in whose district Avondale is located, was essential to the recent resolution. 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.