NEW ORLEANS, LOUISIANA – Avondale Industries, Inc. (NASDAQ/NMS-AVDL) on Thursday, June 18, 1998 at 10 a.m., Louisiana Governor Mike Foster, Avondale Industries, Inc., and the University of New Orleans will jointly dedicate the recently completed University of New Orleans – Avondale Maritime Technology Center of Excellence located at Avondale Shipyards in Avondale, LA.

The new four-story, 200,000-square-foot Center houses the latest computer hardware and software, including state-of-the-art computer-aided systems, three-dimensional modeling capabilities, electronic visualization viewing rooms, training rooms, an amphitheater and much more.

The new facility will support the efforts of the Avondale Alliance in executing a $641 million contract, which calls for the design, construction and support of the first of an anticipated 12 ships under the Navy’s LPD-17 program, the next generation of Navy amphibious ships. The contract award provides for options exercisable by the Navy for two additional LPD-17 ships to be built by the Avondale-led alliance, which includes Bath Iron Works of Bath, ME; the Raytheon Corporation of San Diego, CA; and the Intergraph Corporation of Huntsville, AL. These options bring the total value of the first three ships to approximately $1.5 billion, and it is anticipated that the Navy will acquire an additional 9 vessels in the next 5 years.

“Design work on the initial LPD-17 has already begun and delivery of the first ship is expected in 2002 with the delivery of the last of the twelve vessels not expected until 2008” said Albert L. Bossier, Jr., Chairman, President and CEO of Avondale Industries, Inc. “We are excited about this opportunity for Avondale to work with UNO to enhance the education services offered by its School of Naval Architecture and Marine Engineering which is already the largest in the nation.”

Led by Governor Foster and Louisiana State Department of Economic Development Secretary Kevin Reilly, the state legislature pledged to provide $40 million for construction of the new maritime technology complex. Approximately 65 percent of the funds are being invested in cutting edge computer design capabilities featuring 3-dimensional modeling systems.

The Center will add more than $221 million to local and state revenues by 2002 and will create or preserve approximately 4,048 jobs directly and indirectly from this partnership between the State of Louisiana, Avondale and UNO.

“The Center represents a substantial investment in education, with Avondale donating land adjacent to their corporate headquarters to UNO for the facility,” said UNO Chancellor Gregory O’Brien. “UNO will occupy approximately 20,000-square-feet of the facility and Avondale will assist the University in developing a cooperative engineering program for its School of Naval Architecture and Marine Engineering.”

Avondale engineers and UNO students will develop and construct the first amphibious ship in the LPD-17 program. When completed, the ship will transport Marines to invasion beaches, along with helicopters and air-cushioned landing craft. It will also serve as a combat ship, armed with a vertical-launching system with 64 medium-range Evolved Sea Sparrow missiles to defend against aircraft and missiles in trouble spots throughout the world.

The Maritime Technology Center of Excellence will provide research and engineering capabilities that will be used by UNO students, providing real-world information systems and 3 dimensional product modeling facilities, all in a shipyard environment. Through its curriculum and work with other Louisiana shipbuilders, the University will design technology developed at the center.

UNO was founded as Louisiana State University in New Orleans and opened its doors September 5, 1958. As the second largest university in the state, UNO has distinguished itself by offering flexible schedules and specialized degree programs such as Hotel, Restaurant Management and Tourism Administration, and Naval Architecture and Marine Engineering, UNO is ranked as a Carnegie Research University II, the second Louisiana university to ever receive this distinction. Avondale Industries, Inc., headquartered in metro New Orleans designs, builds and overhauls both military and commercial ships.