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R&R Begins Building Modules for Harrah's

Maritime Activity Reports, Inc.

October 5, 2006

R&R Marine Fabrication and Drydock has begun construction of two specialty hull modules for Harrah's Entertainment, Inc. at its Port Arthur, Texas facility. The modules will form the base of Harrah's renovation and expansion of its Horseshoe Casino in Hammond, IN. The keel for the first hull module was laid on August 8, 2006. When completed, each module will measure 276 x 102 ft. and 22 ft. deep, weighing approximately 1,700 tons. The modules will be combined with four others being built elsewhere into a 564 foot long, 320 foot wide, and 22-ft. deep casino vessel. Both modules being constructed by R&R Marine are expected to be completed in the first quarter of 2007.

R&R Marine provides a full-range of repair, maintenance, conversion and drydock services to vessels in the maritime industry. The Company operates three facilities on the Texas Gulf-Intracoastal waterway servicing tankers, drill rigs, tugs, barges and other offshore support vessels.

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