Cal Dive International Buys Canyon Offshore

Cal Dive International has acquired 85 percent of outstanding Canyon Offshore shares, with the remaining 15 percent to be acquired over the next three years. The acquisition, which is subject to the customary Hart Scott Rodino filing, is expected to close before year-end. Owen Kratz, Chairman and Chief Executive Officer of Cal Dive, stated, "As marine construction support in the Gulf of Mexico moves to deeper and deeper waters, ROV systems will play an increasingly important role." John S. Edwards, CEO of Canyon, said, "CDI was our first customer when Canyon began operations in early 1997 and we are extremely excited to be joining the CDI group of companies and expect to be a major contributor to their continuing success. Joining the CDI group of companies greatly expands Canyons ability to further develop our global capabilities; provides access to capital, a large fleet of dynamically positioned vessels and access to considerable project management resources. Canyon's successful international submarine cable burial business also provides a baseline for the expanded groups international operations and revenue diversification." Canyon will function as an independent operating company, continuing to provide ROV, intervention and cable / flowline burial services to all our customers. Canyon offers a wide range of subsea services to the oil and gas industry, including ROV Services for construction, drilling support, survey, engineering, repair and maintenance.