DEEP Superior Offshore Intl (MM)

HOUSTON, Jan. 22 /PRNewswire-FirstCall/ -- Superior Offshore International, Inc. (NASDAQ:DEEP) today announced that it has completed the sale and charter-back of the Superior Achiever with Hornbeck Offshore Services LLC, a wholly owned subsidiary of Hornbeck Offshore Services, Inc. (NYSE:HOS) ("Hornbeck"), on the terms previously disclosed. The Achiever, which was successfully launched on January 19, 2008, is a DP-III deepwater construction and dive support vessel that is under construction and is expected to be delivered in late 2008. The Achiever's sale price was approximately $70 million, which represents Superior Offshore's investment to date in the vessel. Superior Offshore will use (i) $56.2 million of the proceeds to repay its term loan obligation to Fortis Bank, which includes $55.0 million of principal and $1.2 million of accrued interest and prepayment fees, (ii) $2.6 million to settle an interest rate swap related to the term loan, (iii) $0.9 million for charter hire payments due to Hornbeck for a separate vessel and (iv) $0.5 million for certain transaction expenses. The remaining $9.4 million of proceeds will be used to repay borrowings under Superior Offshore's senior secured credit facility. After the application of the proceeds, Superior Offshore will have no outstanding term debt and approximately $15 million outstanding under its senior secured credit facility. The transaction will reduce Superior Offshore's 2008 capital expenditure requirements by approximately $30 million. Superior Offshore will take delivery of the Achiever or another acceptable vessel under a five-year time charter with Hornbeck. Superior Offshore will have the option to terminate the charter with 90 days' advance notice prior to the end of each six-month period within the term. Superior Offshore and Hornbeck are also exploring non-exclusive joint marketing and cooperation agreements for new business opportunities that would leverage the complementary resources of the two companies. The Superior Achiever will be capable of working in harsh or deepwater environments. Superior Offshore expects to deploy the vessel by the end of this year to international markets and/or deepwater Gulf of Mexico projects. About Superior Offshore International, Inc. Superior Offshore is a leading provider of subsea construction and commercial diving services to the offshore oil and gas industry, serving operators internationally and domestically in the outer continental shelf of the U.S. Gulf of Mexico. Construction services include installation, upgrading and decommissioning of pipelines and production infrastructure. Commercial diving services include inspection, maintenance and repair services and support services for subsea construction and salvage operations. The company also operates a construction/fabrication division. Superior Offshore operates a fleet of nine service vessels and provides remotely operated vehicles (ROVs) and saturation diving systems for deepwater and harsh environment operations. Forward-Looking Statements Certain statements contained in this news release are forward-looking statements. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, including statements concerning the expected use of proceeds from the transaction, plans to pursue business opportunities with Hornbeck and expected synergies with Hornbeck's fleet, expected performance of the Superior Achiever, expected delivery and deployment of the Superior Achiever, Superior Offshore's strategy and business plans. Forward-looking statements by their nature involve substantial risks and uncertainties that could significantly affect expected results, and actual future results could differ materially from those described in such statements. Although it is not possible to identify all factors, we continue to face many risks and uncertainties. Some of the factors that could cause actual future results to differ materially are described under the caption "Risk Factors" in our Prospectus, dated April 19, 2007 and filed with the Securities and Exchange Commission ("SEC") on April 20, 2007, and our other filings with the SEC, which may be obtained by visiting the Investor Relations section of our website under "Financial Information" at http://www.superioroffshore.com/ or from the SEC's website at http://www.sec.gov/. Contacts: Superior Offshore International Roger Burks, CFO 713-910-1875 DRG&E Ken Dennard 713-529-6600 DATASOURCE: Superior Offshore International, Inc. CONTACT: Roger Burks, CFO of Superior Offshore International, Inc., +1-713-910-1875, ; or Ken Dennard of DRG&E, +1-713-529-6600, , for Superior Offshore International, Inc. Web site: http://www.superioroffshore.com/

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