NEWS RELEASE

For further information contact:

Kerry J. Chauvin                                      Joseph P. Gallagher, III
Chief Executive Officer                                Chief Financial Officer
(504) 872-2100                                                  (504) 872-2100
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FOR IMMEDIATE RELEASE
MONDAY, JANUARY 5, 1998

                        GULF ISLAND FABRICATION, INC.
            ANNOUNCES COMPLETION OF ACQUISITION OF SOUTHPORT, INC.


      Houma,  LA  -  Gulf  Island  Fabrication,  Inc.  (NASDAQ:  GIFI) today
announced  that  it  has  completed the previously announced acquisition  of
Southport, Inc., a corporation  headquartered  in  Harvey,  Louisiana  which
specializes in the fabrication of living quarters for offshore platforms.

      Gulf Island Fabrication, Inc. is headquartered in Houma, Louisiana and
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.  The Company offers offshore  interconnect
pipe hook-up, inshore marine construction, and steel warehousing and sales.