NEW ORLEANS, LOUISIANA -- Avondale Industries, Inc. (NASDAQ/NMS-AVDL) today announced that it was awarded a new option for the construction of the seventh ship in the Bob Hope class of Strategic Sealift Ships. The new option has a value of $228.2 million upon its exercise which is anticipated in 1999. After consideration of certain additional components and cost escalations, the option when exercised is expected to total more than $250 million. The Sealift program is a multi-ship initiative intended to support the nation's ability to deploy military materials and equipment quickly throughout the world. Avondale was awarded a contract in 1993 for the initial Sealift ship which contained options for five additional vessels. Four options have been exercised to date and this latest agreement increases the remaining options for the class to two ships. Avondale was informed of the award by its Congressional delegation including House Appropriations Committee Chairman Bob Livingston (R-LA) and U.S. Representative William Jefferson (D-LA). Other area lawmakers including U. S. Representative Billy Tauzin (RLA) voted for this ship on the House floor. Work on the Sealift ship construction program is well underway with delivery of the first ship scheduled for early 1998. Completion of the seventh ship announced today is set for 2001. 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 award this additional option for the Bob Hope class of Strategic Sealift ships increases Avondale's backlog to more than $2.8 billion including options which the Navy holds for additional ships. The Sealift program along with the recently awarded LPD17 shipbuilding contract will provide the foundation and basis of Avondale's business past the turn of the century." Avondale Industries, Inc., headquartered in metro New Orleans designs, builds and overhauls both military and commercial vessels.