Horizon Offshore Says Marine Construction Vessels Not Damaged

Horizon Offshore reports that its marine construction vessels located in the U.S. Gulf of Mexico suffered no damage as a result of Hurricane Rita. The Company's shore base facility in Port Arthur, Texas, from which the Company conducted its Human Resources function and fabricates small components to support its pipeline and derrick projects, suffered wind damage to an office building and welding shop. The Human Resources function has been moved to the Company's Houston headquarters. The Company's facility in Sabine Pass, Texas, which supports the Company's Gulf of Mexico barge operations, was flooded. The Company's damage assessment is ongoing, but it has not discovered any significant damage to its equipment there. Both sites are currently inoperable due to interruption of utilities service. The Company's headquarters in Houston, Texas was not affected and is fully operational.

David Sharp, Horizon's President and Chief Executive Officer, stated, "Unfortunately, a number of our employees were directly impacted by the hurricane, and we are assisting them with their needs, as we did those who required housing and other essentials as a result of Hurricane Katrina. We have made alternative arrangements for shore base support and do not expect any significant interruption of our ability to continue to operate offshore while we prepare for return to our shore bases in Port Arthur and Sabine Pass.''