Horizon Offshore Purchases Derrick/Lay Barge

Horizon Offshore, Inc. has entered into an agreement to purchase the combination derrick/lay barge, Shillelagh, currently located in Indonesia. The vessel is 360 feet long and 100 feet wide and has both pipelay and derrick capabilities. Upgrades and modifications to the vessel will be performed in Batam, Indonesia and is expected to be completed by year-end. After completing the upgrade, the vessel will become the company's largest combination barge, enabling it to perform turnkey projects in remote locations with a single mobilization. The company intends to operate the vessel in Indonesia, Malaysia, as well as other areas in Southeast Asia such as Thailand and Vietnam. This acquisition represents the company's entry into the Asian market and positions the company to pursue opportunities in this market.