Oceaneering Announces $40 Million Capital Spending Authorization

Oceaneering International has received Board of Directors' approval to invest approximately $40 million in a variety of new capital projects, of which $20 million is anticipated to be spent in 2005. These projects include enhancing umbilical manufacturing capabilities and efficiencies at Oceaneering's plant in Scotland, increasing subsea control valve production capacity, building three new work class ROVs, and adding four Installation Workover and Control Systems to Oceaneering's rental fleet in the Gulf of Mexico.

John Huff, Chairman and Chief Executive Officer, stated, "We are making these organic growth investments in response to the escalation in market demand for the niche market products and services we provide. Of the $40 million, approximately $30 million is for our Subsea Products business and the balance for expansion of our ROV fleet. Respectively, these two segments represent the fastest growing and the most profitable lines of business in which we can find attractive investment opportunities. These capital projects are expected to contribute to Oceaneering's future earnings growth."