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HORNBECK-LEEVAC Marine Services, Inc. announced today that revenues for the quarter ended March 31, 2002 increased 118.0 percent to $22.7 million compared to $10.4 million for the same quarter in 2001. Operating income was $9.3 million or 41.0 percent of revenues for the first quarter of 2002, compared to $4.0 million or 38.5 percent of revenues for the same quarter in 2001. First quarter 2002 net income was $3.5 million compared to net income of $1.8 million for the first quarter 2001. As discussed below, the primary reason for the Company's revenue growth for the first quarter 2002 over the prior year is the significant increase in size of the Company's fleet since April 2001.

Management Discussion

The Company's operating fleet grew from 18 vessels at the end of the first quarter 2001 to 39 vessels at the end of the first quarter 2002. The 21 new vessels contributed the vast majority of the $12.3 million increase in first quarter 2002 revenue over the prior year quarter. The Company took delivery of three newly constructed, deepwater OSVs on April 27, 2001, November 6, 2001 and February 20, 2002, respectively; and 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.

Accordingly, the 240-ft class HOS Innovator, the 265-ft. class BJ Blue Ray and the Spentonbush/Red Star acquisition contributed to the Company's revenue growth for all of the first quarter of 2002 and the 240-ft class HOS Dominator contributed to the Company's revenue growth for approximately one month of the first quarter of 2002.

Jim Harp, Vice President and CFO, stated, "We are pleased that, despite the warm weather conditions that adversely affected our barging volumes in the Northeast this winter, we were still able to post yet another quarter of record financial results. This is the third consecutive quarter that our EBITDA has been $11.5 million or greater, bringing our EBITDA for the last twelve months ended March 31, 2002 to $43.4 million."