Gulf Island Fabrication's Louisiana Yards to Resume Ops Next Week

Gulf Island Fabrication, Inc. has reported its assessment of damages to its facilities. The majority of the damage was caused primarily by rising waters from Hurricane Ike that moved through the Gulf Coast beginning late Friday, September 12, 2008, and was sustained by administrative office buildings in Louisiana.

When flood waters began to recede Monday, September 15, 2008, office and essential yard personnel began performing various tasks to return the Company’s corporate headquarters and all the Company’s operating facilities (Gulf Island, L.L.C., Dolphin Services, L.L.C. and Southport, L.L.C.) to operating status. All Louisiana facilities’ employees were allowed to return to work Wednesday, September 17, 2008, and the Company anticipates three of its four Louisiana yards fully operational by early next week. The Company’s Louisiana West Yard will take an additional week to complete post hurricane clean-up and yard restoration.

The Company’s Texas facilities received no storm related damage associated with Hurricane Ike, but had five days of loss productivity due to shut-down related to the storm.

Although all hurricane related damage is covered by insurance, the Company will experience three, possibly four, weeks of loss productivity at its Louisiana facilities. The Company has not determined the financial impact of this loss of productivity, but the majority of the affect will be realized in the third quarter.