Pegasus Ceases Definitive Agreement With Friede Goldman Halter

Wednesday, April 18, 2001
Friede Goldman Halter, Inc. reported today that it has been advised by Pegasus Partners II, L.P. (``Pegasus'') that Pegasus no longer intends to pursue a Definitive Agreement for the proposed $100 million loan to the Company. The Company is continuing to discuss alternatives with Pegasus and others. However, there can be no assurance that the Company will be able to obtain additional equity or financing on terms that will be acceptable.

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