INGALLS SIGNS MAJOR OFFSHORE CONTRACT WITH SEAREX

April 9, 1998 -- Ingalls Shipbuilding division of Litton Industries hassigned a contract worth more than $30 million to build four multipurpose offshore service jackup vessels for SEAREX, Inc., of Mandeville, Louisiana.

"Ingalls is committed to being a major player in the offshore market," said Jerry St. Pe', senior vice president of Litton Industries and president of Ingalls. "This contract with SEAREX is the latest in a series of offshore business arrangements that demonstrate that commitment."

The four vessels, each 165 feet long with a 140-foot beam, will have 260-foot jackup legs, enabling the vessels to operate in water depths up to 180 feet. Ingalls will construct the hull and deckhouse, as well as assemble the complete structure. Work on the vessels will begin immediately, with all four vessels to be delivered in 1999.

"SEAREX will provide all design engineering, as well as major components -- cranes, engines, jacking systems and legs," said Fred Martin, Chief Technical Officer SEAREX. "We believe this is a new direction for a multipurpose market, and that this equipment will be used in all types of oil and gas operations. Because of Ingalls' capabilities, we are confident that we can meet this market demand with a quality product that absolutely meets our delivery schedules."

The contract with SEAREX is the newest in a series of major offshore programs undertaken by Ingalls in recent months. Ingalls signed a licensing agreement March 10 with Zentech, Inc., of Houston, Texas, under which Ingalls will now market Zentech's new R-450 state-of-the-art deepwater jackup drilling rig design for future drill rig construction.

Ingalls is also building a series of next-generation deepwater Offshore Supply Vessels (OSVs), in 240-foot and 190-foot hull lengths, for Edison Chouest Offshore, of Galliano, Louisiana, a leader in the commercial ship chartering industry.

The vessels to be built by Ingalls for SEAREX will feature SEAREX's patented 210-ton Omnilift crane, which will "be used in heavy lift work all over the world," according to Avis Bourg, SEAREX chief operating officer. "This vessel represents an engineering first, and can be used in ways other than oil and gas exploration and production."

The new vessels are highly maneuverable, said Bourg, not only in terms of station-to-station transit in and between oilfields -- without towing assistance, but also in precise positioning next to other offshore structures. "The vessel is also less sensitive to weather, because its jackup capabilities provide stability," Bourg said. "This new SEAREX vessel is being well accepted in oil fields throughout the world."

Immediately after delivery, TRIDENT CRUSADER and its sister ship, TRIDENT EXPLORER, will begin operations in the Gulf of Mexico, in SEAREX's joint venture with Oceanografia, a Mexican corporation.