| NEW ORLEANS, LOUISIANA -- Avondale Industries, Inc. (NASDAQ/NMS-AVDL) today announced the Navy exercised an option for the construction of an additional Strategic Sealift ship at a value of $210.0 million. After consideration of certain additional components and cost escalations, the contract is expected to total more than $240.0 million. This represents the sixth ship which Avondale has now been awarded in the Sealift program, a multi-ship initiative intended to support the nations ability to deploy military materials and equipment quickly throughout the world. Avondale was awarded the contract in 1993 for the initial Sealift ship. The remaining option covering the seventh and final Sealift ship is exercisable in approximately one year. Avondale was informed of the award by its Congressional delegation including House Appropriations Committee Chairman Bob Livingston (R-LA) whose committee funded this ship. Other area lawmakers including U.S. Representatives William Jefferson (D-LA) and Billy Tauzin (R-LA) voted for this ship on the House floor. Work on the first Sealift ship is underway and delivery is scheduled for early 1998. Completion of the sixth ship announced today is set for 2000. 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 funded backlog to more than $1.9 billion. The Sealift program has been a very successful one for Avondale and the Navy. We are proud of the role played by Avondale in this effort and we believe that it clearly demonstrates what can be accomplished through hard work and a cooperative spirit displayed by everyone associated with the project." Avondale Industries, Inc., headquartered in metro New Orleans designs, builds and overhauls both military and commercial vessels. |