Exhibit 99.1

                  Gulf Island Fabrication, Inc. Resumes Normal
                       Operations Atfer Hurricane Katrina


    HOUMA, La.--(BUSINESS WIRE)--Sept. 2, 2005--Gulf Island
Fabrication, Inc. (NASDAQ:GIFI) today reported it sustained very
minimal damage from Hurricane Katrina that moved through the Gulf
Coast Monday. Office and essential yard personnel have been performing
various tasks to return the Corporate headquarters and all the
Company's operating facilities (Gulf Island, L.L.C., Dolphin Services,
L.L.C. and Southport, L.L.C.) to normalcy.
    We anticipate being fully operational (pre-Hurricane Katrina
levels) on Tuesday, September 6, 2005. We distributed to our
production employees their regular weekly payroll checks on Thursday,
September 1, 2005, and they are eager to return to work.
    We request that if any customer, vendor, supplier, investor or
related business associate has any questions, concerns or needs,
please contact us. Due to the extra burden on the communications
systems in our area, we have established several additional telephone
numbers and two additional e-mail addresses at our Corporate
headquarters where we may be contacted. If you use the e-mail
addresses below, please send a copy of the e-mail to your regular
Company contact. You may also use the telephone numbers below to
contact any of the Company's subsidiaries: Gulf Island, L.L.C.,
Dolphin Services, L.L.C. and Southport, L.L.C.


                 The additional telephone numbers are:
                             985-851-4506
                             985-876-4927
                             985-872-9563

                 The additional e-mail addresses are:
                        gulfislandfab@yahoo.com
                        gulfislandfab@excite.com


    Gulf Island Fabrication, Inc., based in Houma, Louisiana, is a
leading fabricator of offshore drilling and production platforms,
offshore living quarters and other specialized structures used in the
development and production of offshore oil and gas reserves. The
Company also offers offshore interconnect pipe hook-up, inshore marine
construction, manufacture and repair of pressure vessels, and steel
warehousing and sales.


    CONTACT: Gulf Island Fabrication, Inc., Houma
             Kerry J. Chauvin, 985-872-2100
             or
             Joseph "Duke" Gallagher, 985-872-2100