HOUMA, La.--(BUSINESS WIRE)--Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $11.9 million ($.83 diluted EPS) on revenue of $117.9 million for its second quarter ended June 30, 2008, compared to net income of $7.9 million ($.55 diluted EPS) on revenue of $137.6 million for its second quarter ended June 30, 2007. Net income for the first six months of 2008 was $25.3 million ($1.77 diluted EPS) on revenue of $241.7 million, compared to net income of $12.3 million ($.86 diluted EPS) on revenue of $246.9 million for the first six months of 2007.

The company had a revenue backlog of $437.7 million and a labor backlog of approximately 4.6 million man-hours remaining to work, which consist of work remaining at June 30, 2008 and commitments received since June 30, 2008.


SELECTED BALANCE SHEET INFORMATION
(in thousands)
	June 30,		December 31,
	2008		2007
Cash and short-term investments	$	19,754	$	24,640
Total current assets		128,025		135,747
Property, plant and equipment, at cost, net		197,739		188,766
Total assets		326,465		325,213
Total current liabilities		53,979		78,363
Debt		0		0
Shareholders' equity		253,224		228,913
Total liabilities and shareholders' equity		326,465		325,213

The management of Gulf Island Fabrication, Inc. will hold a conference call tomorrow July 25, 2008 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss the Company’s financial results for the quarter ended June 30, 2008. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.888.661.5127. A digital rebroadcast of the call is available two hours after the call and ending August 8, 2008 by dialing 1.888.203.1112, replay passcode: 8124669.

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, FPSOs, MinDOCs); piles; wellhead protectors; subsea templates; various production, compressor and utility modules; offshore living quarters; brown water tow boats; 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 of jack-up drilling rigs, semi-submersible drilling rigs, TLPs, SPARs, or other similar cargo; onshore and offshore scaffolding; piping insulation services and steel warehousing and sales.


GULF ISLAND FABRICATION, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands, except per share data)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2008			2007			2008			2007

Revenue	$	117,924		$	137,572		$	241,652		$	246,945
Cost of revenue		97,863			123,429			198,397			224,292
Gross profit		20,061			14,143			43,255			22,653
General and administrative expenses		2,551			2,810			5,269			5,117
Operating income		17,510			11,333			37,986			17,536

Other income (expense):
Interest expense		(7	)		(8	)		(13	)		(19	)
Interest income		36			161			145			280
Other		5			(1	)		(55	)		(5	)
		34			152			77			256

Income before income taxes		17,544			11,485			38,063			17,792

Income taxes		5,672			3,624			12,751			5,516


Net income	$	11,872		$	7,861		$	25,312		$	12,276



Per share data:

Basic earnings per share:	$	0.83		$	0.56		$	1.78		$	0.87

Diluted income per share:	$	0.83		$	0.55		$	1.77		$	0.86


Weighted-average shares		14,251			14,152			14,235			14,140
Effect of dilutive securities: employee stock options		78			121			65			126
Adjusted weighted-average shares		14,329			14,273			14,300			14,266

Depreciation and amortization included in expense above	$	4,254		$	3,492		$	8,430		$	6,918

Cash dividend declared per common share	$	0.100		$	0.100		$	0.200		$	0.200

CONTACT:
Gulf Island Fabrication, Inc.
Kerry J. Chauvin, Chief Executive Officer, 985-872-2100
or
Robin A. Seibert, Chief Financial Officer, 985-872-2100