NEW ORLEANS, LOUISIANA - Avondale Industries, Inc.(NASDAQ/NMS-AVDL) today reported a 30% increase in earnings per share for the first quarter of 1997 to $0.43 per share compared with $0.33 per share a year ago. Net income for the first quarter of 1997 rose to $6.3 million versus $4.7 million in the year-earlier period. Net sales for the three months ended March 31, 1997 totaled $139.5 million versus $156.5 million in the year-earlier period. "The first-quarter gain in net income extends the positive momentum in our performance and marks a strong start for Avondale in 1997," remarked Albert L. Bossier, Chairman and Chief Executive Officer. "The higher profitability compared with a year ago reflects the fundamental progress we have realized in raising the Company's productivity and efficiency. These advances have been instrumental in our success in not only showing consistent growth but also increasing our backlog to a new high of $2.7 billion, including options which the Navy holds for additional ships. An important emphasis now is ensuring that our construction of these ships translates into continued financial progress. We have accordingly begun to make further improvements in our engineering and production systems, including integrating advanced technology wherever possible. "During the first quarter, we delivered a fourth MHC-51 coastal minehunter to the Navy. This ship represented the final ship in a series which started in 1992. We also delivered the second of four commercial tankers which are being retrofitted with double hulls. The remaining two of these ships are scheduled for delivery later this year." Bossier said, "Shortly after the close of the first quarter, we received the formal approval to begin work on the initial ship in the Navy's major LPD-17 shipbuilding program. This represents a landmark series of ships for the Navy and certainly one of the most important contracts that Avondale has ever been awarded. Delivery of this first ship, which involves a $641 million contract, is scheduled for 2002. We are confident that the resources and experience gained as a result of the LPD-17 program will benefit our overall operations and serve as a practical template for future Naval contracts." Avondale Industries, Inc., headquartered in metro New Orleans designs, builds and overhauls both military and commercial ships.