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THE MARINE LOG FEATURES CALENDAR FOR 2003


July 7, 2003


Hornbeck buys deepwater OSVs
Hornbeck Offshore Services, Inc. has acquired five 220-foot class deepwater offshore supply vessels and their related business from Candy Marine Investment Corporation, an affiliate of Candy Fleet Corporation, for an undisclosed amount of cash and Hornbeck common stock. Candy Fleet is a privately held marine vessel operator in the Gulf of Mexico.

Hornbeck funded the cash portion of the purchase price with a combination of borrowings under the its revolving credit facility and proceeds from a private offering of its common stock. In connection with the private offering, which was primarily undertaken to fund a portion of the acquisition costs, Hornbeck received payment or binding subscriptions for $30.0 million of new common stock, including the shares issued directly to Candy Marine Investment Corporation, to fund the equity portion of the purchase price.

Concurrent with the transaction, Hornbeck increased the borrowing base on its revolver from $25.0 million to $50.0 million. Hornbeck plans to continue operating the acquired OSVs, which have an average age of approximately 4.5 years, in the deepwater Gulf of Mexico.

Todd Hornbeck, President and CEO, stated, "We are very excited about this acquisition, which adds a sixth new class of deepwater OSVs to complement our existing fleet. This will further diversify our service offering to include additional vessels that are well suited not only for the deepwater, but for deeper drilling on the Continental Shelf of the Gulf of Mexico. With this purchase, our current deepwater OSV fleet will increase from 15 to 20 vessels, without adding capacity to the market. We will have 22 deepwater OSVs after the delivery of our next two newbuilds later this year. Based on our projections, this transaction will be accretive to earnings. In addition, our use of private equity to fund the majority of the purchase price will improve our leverage and interest coverage ratios."

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