Hornbeck-Leevac Announces Expansion Of OSV Fleet

Hornbeck-Leevac Marine Services, Inc. has announced that its wholly owned subsidiary, Hornbeck Offshore Services, Inc., has begun a new vessel construction program to significantly increase the size of its seven-vessel, state-of-the-art offshore supply vessel (OSV) fleet.

A contract has been signed with Leevac Shipyards to immediately begin construction of two ultra deepwater vessels with four to follow. The first vessel is expected to be delivered in February 2001. All vessels are expected to be completed within the next 20 months.

During a presentation to shareholders, Christian Vaccari, Hornbeck-Leevac's Chief Executive Officer commented, "When we first began construction of our fleet of OSVs in late 1997, we were committed to building a "new breed" of OSVs that would exceed the requirements of our offshore customers." Hornbeck Offshore Services currently operates a fleet of seven recently constructed, high capacity OSVs. The new ultra deepwater vessels announced today will incorporate the highly successful design features and specifications of the current deepwater fleet.

These state-of-the-art vessels were specially designed to maximize available deck space and supply capacities while minimizing operating costs through increased operating efficiencies.

Todd Hornbeck, President of Hornbeck-Leevac commented, "We are very pleased with the continuing positive response we have received from our customers on our fleet. In anticipation of the growing needs of the ultra deepwater offshore industry over the next several years and the strong demand from our clients to increase the number of Hornbeck-designed vessels that can be made available for long-term contracts, we are very proud to embark on this exciting expansion program."

Hornbeck has employed the latest available reliable technology throughout its deepwater fleet. Their OSVs are capable of transporting 3 to 6 times the amount of product and materials offshore as conventional OSVs. Service markets include oilfield production and exploration support, geophysical surveying, well stimulation and heavy equipment and container transportation. Their diversified new generation fleet will provide maximum customer support from the continental shelf to the ultra deepwater.