Offshore staff

HOUMA, Louisiana -- GM Fabricators L.P., a subsidiary of Gulf Island Fabrication Inc., signed a letter of intent from Daewoo Shipbuilding & Marine Engineering Co. Ltd. to fabricate and load-out the tower top section and tower bottom section of a compliant tower project for Cabinda Gulf Oil Co. Ltd.

Most of the fabrication, assembly and load-out will be at Gulf Marine's south Texas facility and the remainder at its Houma, Louisiana, plant.

Fabrication is scheduled to start 1Q07 with completion in 3Q08.

7/31/06