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Kerry J. Chauvin                                  Joseph "Duke" Gallagher
Chief Executive Officer                           Chief Financial Officer
(504) 872-2100                                             (504) 872-2100
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FOR IMMEDIATE RELEASE
THURSDAY, JULY 24, 1997



                        GULF ISLAND FABRICATION, INC.
            REPORTS SECOND QUARTER AND YEAR-TO-DATE 1997 EARNINGS


      Houma, LA - Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today
reported pro forma net income of $3.3 million ($.57 per share) on revenue of
$35.0 million for its second quarter ended June 30, 1997, compared to pro
forma net income of $1.2 million ($.32 per share) on revenues of $21.7
million for the second quarter of 1996.  The company completed its initial
public offering on April 9, 1997 in which 2.3 million shares were issued
causing the pro forma weighted average shares outstanding to increase from
3.9 million for the first quarter of 1997 to 5.7 million for the second
quarter of 1997.

      Pro forma net income for the first six months of 1997 was $5.5 million
($1.14 per share) on revenue of $65.2 million, compared to pro forma net
income of $1.7 million ($.44 per share) on revenues of $41.2 million for the
first six months of 1996.

      Pro forma net income gives effect to federal and state income taxes as
if the company had been a C Corporation for tax purposes during all the
periods of 1996 and 1997.  Pro forma net income, excludes the non-recurring
charge of $1.1 million to record the cumulative deferred income tax
provision upon the election on April 4, 1997 to convert from S Corporation
status to C Corporation status.  At June 30, 1997, the consolidated
companies had a revenue backlog of $81.7 million and a labor backlog of 1.2
million manhours remaining to work.

      Kerry Chauvin, Gulf Island Fabrication, Inc.'s president and chief
executive officer noted, "The enhanced performance for 1997 reflects the
company's productivity through innovative programs and capital improvements.
Ongoing recruiting and training programs have enabled the company to
increase its skilled employment levels.  Strong demand for the company's
products resulting from the high activity levels in the oil and gas industry
has enabled the company to improve profit margins."

      Gulf Island Fabrication is a leading fabricator of offshore drilling
and production platforms and other specialized structures used in the
development and production of offshore oil and gas reserves.