EXHIBIT 99.1

Gulf Island Fabrication, Inc. Announces Additional Project Awards

    HOUMA, La.--(BUSINESS WIRE)--July 28, 2006--Gulf Island
Fabrication, Inc. (NASDAQ: GIFI), announces that its wholly owned
subsidiary G.M. Fabricators, L.P. d/b/a Gulf Marine Fabricators, has
received a letter of intent from Daewoo Shipbuilding & Marine
Engineering Co., Ltd. ("DSME"), to fabricate and load-out the Tower
Top Section ("TTS") and the Tower Bottom Section ("TBS") for the
Cabinda Gulf Oil Company Ltd. Tombua Landana DDP Compliant Tower
Project. Financial terms of this specific contract will not be
disclosed.
    The majority of the fabrication, assembly and load-out will be
performed at the Gulf Marine Fabricators facility located in South
Texas. Some components of the project will be fabricated at the Gulf
Island, L.L.C facility located in Houma, Louisiana. Gulf Island,
L.L.C. is also a wholly owned subsidiary of Gulf Island Fabrication,
Inc. Gulf Marine expects to begin fabrication during the first quarter
of 2007 and expects to deliver the project in the third quarter of
2008.
    This project, included with several other projects awarded since
the Company released backlog information on July 26, 2006, increases
the Company's backlog to $344.0 million and 3.3 million man-hours
remaining to work.

    Gulf Island Fabrication, Inc., based in Houma, Louisiana, is a
leading fabricator of offshore drilling and production platforms, hull
and/or deck sections of floating production platforms and other
specialized structures used in the development and production of
offshore oil and gas reserves. These structures include jackets and
deck sections of fixed production platforms; hull and/or deck sections
of floating production platforms (such as tension leg platforms
("TLPs")), "SPARs and FPSOs", piles, wellhead protectors, subsea
templates and various production, compressor and utility modules,
offshore living quarters, tanks and barges. The Company also provides
offshore interconnect pipe hook-up, inshore marine construction,
manufacture and repair of pressure vessels, heavy lifts such as ship
integration and TLP module integration, loading and offloading jack-up
drilling rigs, semi-submersible drilling rigs, TLP's, SPARs or other
similar cargo onshore and offshore scaffolding and piping insulation
services and steel warehousing and sales.

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