Horizon Offshore's board of directors has named Richard A. Sebastiao of RAS Management Advisors, Inc., a turnaround and management consulting firm, as chief restructuring officer of the Company. The Company engaged a chief restructuring officer as part of its ongoing negotiations with the holders of its 18% subordinated secured notes, due March 31, 2007. As chief restructuring officer, Mr. Sebastiao will serve as the Company's principal executive officer and work with the Company's senior management to strengthen the Company's financial position and reduce its indebtedness. Bill J. Lam, its Chief Executive Officer and President will continue as President and be responsible for the day-to-day operational activities of the Company, while negotiating an amendment to his employment agreement with the Company. The amendment is necessary to address certain provisions which would otherwise allow Mr. Lam to terminate his employment and receive severance benefits.