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    Troubled times at FGH

    News // April 5, 2001
    Troubled American shipbuilding and offshore group Friede Goldman Halter (FGH) says it could file for bankruptcy, and has cancelled a Conference Call originally planned for 03 April. The company says it may have to seek bankruptcy protection if it cannotrenegotiate existing credit agreements and find new funding.

    FGH says the decision to cancel the conference call was not made lightly, but is deemed to be the best current course of action due to several circumstances.

    FGH said, "The ongoing complexity of our current negotiations with investors, lenders, and potential lenders, and a personal crisis which prevented one of the company's senior executives from participating in the call, were all integral issues in makingthis decision".

    "In the meantime, questions regarding information in the Form 10-K may be submitted by email to our Investor Relations Group at IR@FGH.COM, or by writing to the company at the corporate address listed below. To ensure that we are consistent and respond appropriately under the guidelines of SEC Regulation FD, we will issue additional press releases immediately upon the availability of information materially relevant to the Company".

    FGH has, however, announced new projects with a combined value of over $56 million.

    These include a contract awarded by PPL Shipyard Pte Ltd in Singapore for the design of two high-performance JU 2000 jack-up drilling rigs to be built by PPL for Santa Fe International Corporation. FGL will also supply PPL with its patented 'Rack Chock'leg locking system.

    The contract includes options for the design and rack chocks for up to four additional JU-2000 jack-ups.

    FGH Engineered Products has been awarded a contract by PPL Shipyard for the manufacture of the jacking system for the JU 2000 jack-up drilling rig to be built by PPL for Santa Fe, with a provisional order for a second system.

    The jacking system includes 36 of BLM-Offshore's Model C-150 high capacity jacking units, which will be built at BLM-Offshore's plant in Nantes, France.

    FGH Engineered Products has also been awarded a contract by Hyundai Heavy Industries, of South Korea, for the manufacture of the jacking system for a second ultra-harsh-environment jack-up drilling rig to be built by Hyundai for Maersk Contractors, of Denmark. This rig will be suitable for operation in water depths up to 625 feet and will require 54 of BLM-Offshore's highest-capacity Model C-170 jacking units.

    FGH Engineered Products has received an order from Heerema Marine Contractors of Leiden, the Netherlands, for the development of an AmClyde Mooring Line Deployment Winch for use as installation equipment on Heerema's derrick crane vessels.

    The winch will be a central component of Heerema's system for deploying approximately 6,000ft lengths of 7in diameter 'jacket spiral strand wire rope', interspersed with lengths of chain, for the permanent mooring of floating production vessels in deep water.

    The very large mooring line size dictates a winch-drum diameter of 34.5ft and a length of 38ft - it is believed that this will be the largest drum winch in the world.

    On 30 March FGH announced the appointment of Anil Raj as its Chief Operating Officer.

    Raj, 50, was previously the company's Senior Vice President, Government Projects.

    He joined Halter Marine in 1987 as Director of Engineering, and had previously been employed by Brown & Root, Inc. and by Gulf Fleet Marine Corporation. He holds a BSE degree in naval architecture and marine engineering from the University of Michigan.

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