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July 23, 2002

Torch Offshore gets bank facility, loses CFO
Torch Offshore, Inc. says it has entered into a new $35 million bank facility with Regions Bank. The bank facility consists of a $25 million asset-based 5-year revolving credit facility and a $10 million working capital facility. The bank facility will be used primarily to provide near-term financing for the conversion of Torch Offshore's world-class deepwater construction vessel, the Midnight Express.

Torch Offshore chairman and CEO Lyle G. Stockstill termed the new bank facility "an integral part of Torch's long-term expansion plan into the deepwater construction market."

Stockstill said the company has received bids for the conversion of the Midnight Express and is in the early stages of evaluating and selecting a shipyard for the conversion. "We remain on schedule to award the contract for the conversion in August and to commence construction shortly thereafter," he said. "This new facility allows us to continue with these plans while we implement Torch's long-term financing plan."

Separately, Torch Offshore also announced today that CFO William J. Blackwell has resigned and relinquished his seat on the board in order to pursue other career interests. Blackwell will remain with the company through the announcement of itd second quarter financial results on August 8, 2002.

Torch says it is actively seeking a replacement and that "no business, competitive or financial reporting issues played any role" in Blackwell's decision.

"Bill played an important role in the success of our company, including our recent initial public offering in June 2001," commented Stockstill. "We are actively pursuing other qualified candidates for the position of chief financial officer and are quite excited about the opportunities available to the company. We are working to fill the position as soon as possible, but most importantly want to make the right decision for the future of Torch Offshore."

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