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September 5, 2005

Gulf coast yards continue restoration efforts

Gulf coast shipyards are starting to pick up the pieces after Hurricane Katrina. Here are some updates.

BOLLINGER

In a posting on its website Friday, Bollinger Shipyards said "we are assessing the status of Bollinger Shipyards family of employees and facilities. We are making arrangements to get us up and running as quickly and safely as possible."

As of Friday, Bollinger Lockport Repair, Bollinger Larose, Bollinger Morgan City, Bollinger Marine Fabrication, Bollinger Amelia Repair, Bollinger Calcasieu, Bollinger Texas City and Chand were up and running. Current employees, please contact the yard and/or your supervisor for schedule information.

Bollinger Lockport New Construction (BLN) was to have limited crews working on Saturday September 3, 2005 and Sunday September 4, 2005 and is be closed today for the Labor Day holiday. It will begin full operations (including night crews) on Tuesday, September 6, 2005.

Bollinger St. Rose office is closed until further notice.

As of Friday, Bollinger Gulf Repair facility was inaccessible as were the Bollinger Algiers Repair, Bollinger Quick Repair, Bollinger Fourchon and Bollinger Gretna facilities.

"We are working on plans to get these facilities back operational which are dependent on electrical power and access to the affected areas so our employees can get to work. For those current employees whose yard is not in operation yet, please contact or come to one of the operational yards for work. We want to put you back to work in one of our Bollinger family of shipyards. Employees in those non-operational yards can pick up their paycheck in Lockport or can call 877-465-1985 to have your payroll check mailed to you. You will need to give your name, social security number and your supervisor's name to have your check mailed to you."

Please keep in mind that our Bollinger Shipyards Emergency number is also available with up to date information on current operations 866-277-1613.

VT HALTER MARINE

ST Engineering reports that its VT Halter Marine subsidiary secured its facilities and closed operations before the storm hit but suffered some damage by wind and water of to all three shipbuilding facilities in Pascagoula, Halter Moss Point and Moss Point Marine. The full extent of damage to its facilities and equipment is still being assessed. The cost of damage is expected to be covered largely by insurance claims, as well as possible Federal and State government assistance.

"When power is restored to the area, VT Halter Marine anticipates a quick return to full operations," said ST Engineering.

"We're thankful to have escaped with only damage to our facilities in what is being called the worst natural disaster in the U.S. The entire Gulf Coast area has suffered widespread damage and our hearts go out to the many people who have lost their homes and loved ones. While VT Halter Marine suffered some damages, we're grateful that all our employees are safe. Our people are doing all they can to get their operations up and running as soon as possible, but it could take a few weeks or more to resume full operations," said Tang Pheng Hock, President & CEO, ST Engineering

NORTHROP GRUMMAN

Northrop Grumman Corporation (NYSE:NOC) reports that more than 700 Northrop Grumman Ship Systems sector shipbuilders had responded to the call to clean up and bring the shipyards back to production.

Corporate Vice President and Ship Systems President Philip Teel toured the facilities in Pascagoula and Gulfport, Miss., on Friday, supervising recovery operations, and then flew to the New Orleans facility Saturday to assess recovery efforts.

On Sunday, Teel said the company had "transferred the Pascagoula shipyard command center from the U.S. Navy's guided missile destroyer Forrest Sherman (DDG 98) to our headquarters administration building, which is a striking indication of how far the recovery effort has come."

A number of major shipyard assets, such as cranes and most fabrication facilities at all the Ship Systems sector facilities, appear to have survived the hurricane, and are being brought back to an operational status. An increased number of workers have reported to the Pascagoula facility to assist with clean up, damage assessment, and recovery operations, while workers at the Gulfport facility continue the effort to restore operations.

More than 16,000 gallons of much needed fuel were transferred Friday from the Chevron refinery in Pascagoula to its industrial neighbor, Northrop Grumman Ship Systems, to fuel the increasing fleet of rolling stock (trucks and heavy lifting equipment). As of this weekend, virtually all of the critical rolling stock had been recovered and restored to operational status.

The Navy continues to provide extraordinary support to Northrop Grumman by offering facilities, communications, and accommodations aboard its ships at Pascagoula facility to assist in the restoration of shipyard operations. In addition to providing the temporary operations center aboard the Forrest Sherman, the Navy is also assisting with communications at the shipyards and is transporting critically needed fuel-pumping trucks from its Newport News facilities.

Initial inspections at the company's Pascagoula shipyard dry-dock facilities indicated no major damage. Divers wre conducting more detailed inspections over the weekend. Crucial production and fabrication facilities at the shipyard were cleared and are ready to receive power.

Northriop Grumman says critical materials continue to arrive at the Pascagoula shipyard from the company's Newport News sector, including trucks and heavy lifting equipment, generators, food and water. These materials are playing a pivotal role in accelerating the operational start-up schedule for the Pascagoula shipyard.

The company's New Orleans shipyard has made significant progress this weekend and is making final preparations to receive power by repairing several power towers. A convoy of trucks arrived at the shipyard Saturday from Northrop Grumman's Integrated Systems sector facilities in Lake Charles, La. bringing much needed fuel, water and food.

The company's Gulfport Center for Composite Excellence is in better condition than originally expected given the force of Hurricane Katrina. Damage assessments and clean-up efforts continue this weekend. In addition, regional search-and-rescue teams are operating from the Gulfport facility

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