McDermott Completes Sale of Scottish Fabrication Facility

J. Ray McDermott recently completed the sale of its Ardersier, Scotland, fabrication facility ("Ardersier"), which had been inactive since 2001. It is anticipated the buyer will convert Ardersier for residential and commercial purposes, including a marina. The proceeds received from the transaction were approximately $14.5 million, and will be used in accordance with the indenture on J. Ray's senior secured notes, issued in December 2003.

"The Ardersier sale is another example of our recent success in monetizing assets that are either non-strategic to J. Ray's ongoing operations or do not earn an acceptable return on capital employed," said Bob Deason, President and Chief Operating Officer of J. Ray. "During 2004, J. Ray has improved its results from the underlying business, strengthened its liquidity position and monetized over $75 million in assets. It has proven to be a powerful combination."