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February 28, 2002

Hornbeck-Leevac makes management changes, reports revenue increase
In senior management changes at Hornbeck-Leevac Marine Services, Inc., Todd M. Hornbeck has been appointed CEO in addition to his current position as president.

Bernie W. Stewart has been elected Chairman of the Board and has entered into a consulting agreement with the company. Stewart served in a variety of senior management positions with R&B Falcon until its merger in January 2001 with Transocean Sedco Forex, Inc. Most recently he was senior VP, operations of R&B Falcon Corporation and president of R&B Falcon Drilling US, its domestic operating subsidiary. Previously, he served as senior VP and COO of the original Hornbeck Offshore Services, Inc., and prior to that as president of Western Oceanics, Inc.

In other changes announced by Hornbeck-Leevac, Carl G. Annessa, a VP, has been elected to the additional position of COO. Christian G. Vaccari will remain as a director of the company.

Speaking for the Board, Todd Hornbeck commented, "The company is making these changes to streamline and focus management authorities and responsibilities and reinforce the strengths of our operations."

Reporting results for the quarter ended December 31, 2001 and for the year 2001, Hornbeck-Leevac unveiled revenues for fourth quarter that were up 117.0 percent to $21.7 million compared to $10.0 million for the same quarter in 2000. Operating income was $8.7 million or 40.1 percent of revenues for the fourth quarter of 2001, compared to $3.9 million or 39.0 percent of revenues for the same quarter in 2000. Fourth quarter 2001 net income was $3.4 million compared to net income of $1.4 million for the fourth quarter 2000. The primary reason for the increase in financial results of operations for the fourth quarter 2001 over the prior year was the significant increase in size of the fleet during 2001.

For the calendar year 2001, revenues increased 90.6 percent to $68.8 million resulting in operating income of $27.9 million or 40.6 percent of revenues, compared to calendar 2000 revenues of $36.1 million that resulted in operating income of $12.3 million or 34.1 percent of revenues. Income before extraordinary items totaled $11.9 million for the calendar year 2001 compared to net income of $2.7 million for the calendar year 2000.

Net income for the calendar year 2001 included a non-cash extraordinary loss of $2.0 million, net of taxes, related to the write-off of deferred financing costs upon the refinancing of all of the company’s debt through the issuance of $175.0 million of senior unsecured notes in July 2001.

Hornbeck-Leevac experienced a 41 percent increase in average OSV dayrates and a 6 percent increase in fleetwide OSV utilization during 2001. But the primary contributing factor to revenue growth was the increase of its fleet from 23 to 44 vessels.

The company took delivery of two newly constructed, deepwater OSVs on April 27, 2001 and November 6, 2001, respectively. It acquired nine ocean-going tugs and nine ocean-going tank barges from the Spentonbush/Red Star Group, affiliates of Amerada Hess Corporation, on May 31, 2001, and one 402-ft. self-propelled tank barge from Freeport-McMoRan Sulfur LLC on November 15, 2001.

Accordingly, the 240-ft class HOS Innovator contributed to revenue growth for all of the fourth quarter of 2001 and for eight months during the calendar year ended December 31, 2001. The 265-ft. class BJ Blue Ray contributed to revenue growth for two months of each of the fourth quarter of 2001 and the calendar year ended December 31, 2001. The Spentonbush/Red Star acquisition contributed to revenue growth for all of the fourth quarter of 2001 and for seven months during the calendar year ended December 31, 2001.

President and CEO Todd Hornbeck commented: "We are very pleased with yet another quarter of record revenue and EBITDA, despite the unfavorable market conditions that exist in both of our business segments. In particular, we would have had an even better performance from our Northeast tank barge operations this quarter had it not been for the unseasonably warm winter being experienced there, a trend that unfortunately has continued into the first quarter of 2002."

Among recent developments, Hornbeck-Leevac announced that it had taken delivery of the 240-ft. class HOS Dominator, its third vessel certified Dynamic Positioning Class II by ABS. The vessel was delivered into service, substantially on time and on budget, on February 20, 2002. It immediately commenced service under a three-year time charter, with a three-year renewal option, with Sonsub Inc., an affiliate of the ENI/Saipem Group, to support subsea completion services, primarily in the Gulf of Mexico. This agreement is on substantially the same terms as the 240-ft. class HOS Innovator, which was delivered to Sonsub in April 2001. The company has three additional 265-ft. class offshore supply vessels under construction for delivery in 2002.

Todd Hornbeck said that progress continued on contracting the remaining three 265-ft. class newbuilds. "We continue to see a significant level of interest in these vessels; however, we have narrowed the field and are in late-stage discussions with a short list of customers. We remain confident of our ability to secure long-term contracts for these vessels on attractive terms before their delivery from the shipyard."