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PRESS RELEASE
FOR IMMEDIATE RELEASE
HOUSTON, TX., November 20, 2000 -- GulfMark Offshore, Inc.
(NASDAQ:GMRK) today announced it had signed a series of contracts with
Aker Brattvaag of Norway to build four new supply vessels (PSVs) and
three anchor handling tug supply vessels (AHTSs) at a total cost of
approximately $148.0 million. The seven vessel building program is
designed, in part, to replace the vessels recently sold by Sanko
Steamship Co. which are currently under bareboat charter or management
agreements with the Company. Upon delivery and entry into service,
the operating income contribution from the newly constructed vessels
will be significantly greater than the operating income from the
bareboat chartered/managed vessels being replaced in the fleet.
The delivery of the seven new vessels is scheduled to coincide with
or precede the expiration of the bareboat charters and to replace boats
which were under management agreements at the earliest possible date.
This newbuild program includes the potential but not an obligation to
include the owners of the managed vessels as joint venture participants
or owners of selected vessels. When combined with the two vessels
currently under construction (1-UT755L scheduled for delivery in the 3rd
quarter of 2001 and 1-UT745 scheduled for delivery in the 1st quarter of
2002), a total of nine new vessels will be added to the fleet over a
three year period at a total constructed cost of approximately $182.0
million.
The vessels specifications, scheduled delivery and approximate cost
of the seven vessels are detailed below:
<TABLE>
<CAPTION>
Vessel Vessel Type Length BHP DWT Delivery Date Millions
------ ----------- ------ ----- ----- ------------- --------
<S> <C> <C> <C> <C> <C> <C>
UT745 PSV 275' 9,600 4,320 1st Qtr. 2002 $ 19.0
UT755 PSV 220' 5,450 3,115 3rd Qtr. 2002 12.1
UT722L AHTS 260' 16,320 2,000 4th Qtr. 2002 29.2
UT755L PSV 236' 5,450 3,115 1st Qtr. 2003 14.6
UT755 PSV 220' 5,450 3,115 2nd Qtr. 2003 12.7
UT722L AHTS 260' 16,320 2,000 3rd Qtr. 2003 30.2
UT722L AHTS 260' 16,320 2,000 4th Qtr. 2003 30.2
--------
Total $ 148.0
========
</TABLE>
Mr. Bruce Streeter, President and COO, said "We are excited that we
can replace the vessels which have or will be lost from our fleet at
prices which are at a discount to those currently being paid for similar
vessels less than 5 years old. The vessel specifications were carefully
developed considering recent market changes and involved consultation
with two of the owners of vessels under management. We believe the mix
of vessels will not only meet our customer requirements but will also
allow us to provide a full range of vessel services to the expanding
deepwater markets of the world. By packaging the group of seven
vessels, we believe we were able to gain favorable pricing, as well as a
timely delivery schedule.
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GULFMARK OFFSHORE, INC.
Press Release - For Immediate Release
November 20, 2000
The favorable terms of the progress payments on the seven new
vessels will minimize cash outflow for the program until the vessels are
delivered. Estimated payments related to the program are $5.9 million
in 2000, $12.2 million in 2001, $57.0 million in 2002 and $72.9 million
in 2003. The funding required for this new construction program should
come from cash on hand, anticipated cash flow from operations over the
three year construction period and funds available from the Company's
existing $75.0 million line of credit."
GULFMARK WILL HOLD A CONFERENCE CALL TODAY AT 4:00 P.M. EST to
discuss the program with analysts, investors and other interested
parties. Those interested in participating in the conference call
should call 800/230-1074 (612/332-0342 if outside the U.S. and Canada) 5
- 10 minutes in advance of the start time and ask for the GulfMark
conference. The conference call will also be available via audio
Webcast at www.vcall.com. A replay will be available after the
conference call at 800/475-6701 (320/365-3844 if outside the U.S. and
Canada) with the access code of #551823.
GulfMark Offshore, Inc. provides marine transportation services to
the energy industry with a fleet of forty-six (46) offshore support
vessels, primarily in the North Sea, offshore Southeast Asia, Brazil and
West Africa.
Contact: Edward A. Guthrie, Executive Vice President & CFO
(713) 963-9522
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 which involve known and unknown risk, uncertainties and other
factors. Among the factors that could cause actual results to differ
materially are: prices of oil and gas and their effect on industry
conditions; industry volatility; fluctuations in the size of the
offshore marine vessel fleet in areas where the Company operates; changes
in competitive factors; delay or cost overruns on construction projects;
and other material factors that are described from time to time in the
Company's filings with the SEC. Consequently, the forward-looking
statements contained herein should not be regarded as representations
that the projected outcomes can or will be achieved.
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