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EXHIBIT 99.1
FRIEDE GOLDMAN HALTER, INC.
PRESS RELEASE
For immediate release
FRIEDE GOLDMAN OFFSHORE TEXAS, PETRODRILL
SETTLE CONTRACT DISPUTE
GULFPORT, MS, MAY 30, 2000 - Friede Goldman Halter, Inc. (NYSE: FGH) today
announced that its Friede Goldman Offshore Texas ("FGOT") subsidiary has reached
an agreement with Petrodrill IV Ltd. and Petrodrill V Ltd. ("Petrodrill")
regarding contract disputes over FGOT's construction of two Amethyst-class
deepwater semisubmsersible drilling rigs for Petrodrill. The agreements have
been approved by the boards of directors of both Friede Goldman Halter and
Petrodrill, by the U.S. Maritime Administration, which is providing loan
guarantees for the project.
Under the agreements, new delivery dates for the Amethyst 4 and Amethyst 5 are
September 15, 2001 and December 15, 2001, respectively. Both parties have
agreed to increase the float-out milestone payment by $3 million per rig and to
a final $6.4 million payment per rig at delivery, resulting in a new contract
value of $186.8 million based upon the new delivery schedules. The parties have
also agreed to increased late delivery penalties; however, the company believes
that during the past four months it has completed necessary engineering to allow
for a smooth completion of the construction plan. In addition, both parties
have agreed to terminate all pending litigation related to the project.
"This settlement is a major milestone in the Amethyst project," said John
Alford, president and chief operating officer of Friede Goldman Halter. "We can
now focus on the process of completing and delivering these rigs with the
knowledge that FGOT and Petrodrill are aligned in our objectives."
Friede Goldman Offshore has assigned a veteran project engineer to oversee the
timely completion of these rigs. Construction of Amethyst 5 will be transferred
from Pascagoula, MS to the company's Orange, TX facility.
"This two-pronged construction plan will enable us to leverage the experience
and immediate availability of our Texas workforce while ensuring that we have
capacity in each of our facilities to accommodate upgrade and repair projects
for long-term customers," Alford concluded.
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FRIEDE GOLDMAN HALTER
MAY 30, 2000
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Friede Goldman Halter is a world leader in the design and manufacture of
equipment for the maritime and offshore energy industries. Its operating units
are Friede Goldman Offshore (construction, upgrade and repair of drilling units,
mobile production units and offshore construction equipment), Halter Marine
(construction and repair of ocean-going vessels for commercial and governmental
markets), FGH Engineered Products Group (design and manufacture of cranes,
winches, mooring systems and marine deck equipment), and Friede & Goldman Ltd.
(naval architecture and marine engineering).
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FOR INFORMATION REGARDING THIS OR ANY OF OUR PRESS RELEASES, CONTACT:
JOHN S. HASTINGS
Investor Relations and Corporate Communications
(228) 897-4987
*Note: This press release includes certain statements that may be deemed to be
"forward-looking statements" within the meaning of Section 27A of The Securities
Act of 1933, as amended, and Section 21 E of the Securities Exchange Act of
1934, as amended. All statements, other than statements of historical facts,
included in this press release that address activities, events or developments
that Friede Goldman Halter expects, believes or anticipates will or may occur in
the future, are forward-looking statements. These statements are based on
certain assumptions and analyses made by Friede Goldman International Inc. in
light of its experience and its perception of historical trends, current
conditions, expected future developments and other factors it believes are
appropriate in the circumstances. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the control of
Friede Goldman Halter and which are discussed in Friede Goldman Halter's
Registration Statement on Form S-1, the 1999 Annual Report on Form 10-K, and the
company's most recently filed Form 10-Q. Investors are cautioned that any such
statements are not guarantees of future performance and that actual results or
developments may differ materially from those projected in the forward-looking
statements.
