AVONDALE ESOP PLANS SALE OF APPROXIMATELY 2,950,000 OF TOTAL SHARES REGISTERED NEW ORLEANS, LOUISIANA -- Avondale Industries, Inc. (NASDAQ/NMS-AVDL) announced that the Company filed a Registration Statement with the Securities and Exchange Commission relating to the offering of 3.0 million shares of the Company's common stock, of which approximately 2,950,000 will be sold by the Avondale Employee Stock Ownership Plan ("ESOP") and the remainder will be sold by the Company. The registration statement covers an additional 450,000 shares granted by the Company to the underwriters as an over-allotment option. Managing underwriters for the offering are Salomon Brothers Inc and Johnson Rice & Company L.L.C. The ESOP has advised the Company that it plans to use the proceeds from the offering of its shares to diversify its investment portfolio. The Company will use the proceeds from the sale of shares offered by it to fund capital expenditures and for other general corporate purposes. The ESOP, which was formed in 1985, currently owns approximately 20% of the 14.5 million shares outstanding and, upon completion of the offering, the ESOP will no longer own any shares of common stock of the Company. 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, designs, builds and overhauls both military and commercial vessels.