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FGH Announces Extension of Debtor Exclusivity in Bankruptcy Process

Maritime Activity Reports, Inc.

December 13, 2001

Friede Goldman Halter, Inc. announced that the U.S. Bankruptcy Court has extended the exclusively period for filing of a reorganization plan until February 11, 2002. The primary secured lending group and the Official Unsecured Creditors’ Committee unanimously supported this extension. The restructuring committee of the board of directors has been evaluating expression of interest received from potential strategic and financial parties. These interested parties will conduct final due diligence in the next 30 days, and the restructuring committee expects to make its recommendation prior to February 1, 2002. Both the restructuring committee and the official unsecured creditors’ committee are evaluating all possible alternatives for the company. James Decker, Director, Holihan Lokey Howard & Zukin, the exclusive investment advisor to FGH, said, “Discussions are being conducted with numerous interested parties who are keenly interest in the business units of FGH. We expect spirited competition in the next 30 days as the process narrows down to specific contract negotiations.” Jack Stone, Principal, Glass 7 Associates, Inc. and Chief Restructuring Advisor to FGH, commented, “The business units of FGH continue to realize improvement as the management team focuses on the profitability of the business and proposals to customers. The support of the customers, suppliers and employees has been remarkable and reflects credit on the actions of management.” T. Jay Collins, Chairman of the Restructuring committee of the Board, commented, “ All feasible solutions are being evaluated with the objective of maximizing the value of FGH.”

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