HOUMA, La.--(BUSINESS WIRE)--October 23, 2008--Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $2.8 million ($.20 diluted EPS) on revenue of $92.7 million for its third quarter ended September 30, 2008, compared to net income of $10.0 million ($.70 diluted EPS) on revenue of $124.9 million for the third quarter ended September 30, 2007. Net income for the first nine months of 2008 was $28.1 million ($1.97 diluted EPS) on revenue of $334.3 million, compared to net income of $22.3 million ($1.56 diluted EPS) on revenue of $371.8 million for the first nine months of 2007.

The company had a revenue backlog of $422.4 million and a labor backlog of approximately 4.6 million man-hours remaining to work, which consist of work remaining at September 30, 2008 and commitments received since September 30, 2008.

SELECTED BALANCE SHEET INFORMATION
(in thousands)
	September 30,		December 31,
	2008		2007
Cash and short-term investments	$	5,559	$	24,640
Total current assets		126,733		135,747
Property, plant and equipment, at cost, net		204,246		188,766
Total assets		331,679		325,213
Total current liabilities		57,241		78,363
Debt		-		-
Shareholders' equity		254,769		228,913
Total liabilities and shareholders' equity		331,679		325,213

The management of Gulf Island Fabrication, Inc. will hold a conference call tomorrow, Friday, October 24, 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 September 30, 2008. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.888.778.8903. A digital rebroadcast of the call is available two hours after the call and ending November 7, 2008 by dialing 1.888.203.1112, replay passcode: 9473494.

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 and MinDOCs, 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, TLPs, SPARs or other similar cargo onshore, and offshore scaffolding and 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						Nine Months Ended
	September 30,						September 30,
	2008			2007			2008			2007

Revenue	$	92,657		$	124,900		$	334,309		$	371,845
Cost of revenue		86,349			106,904			284,746			331,196
Gross profit		6,308			17,996			49,563			40,649
General and administrative expenses		2,070			2,771			7,339			7,888
Operating income		4,238			15,225			42,224			32,761

Other income (expense):
Interest expense		(18	)		(14	)		(31	)		(33	)
Interest income		42			63			187			343
Other		(42	)		(5	)		(97	)		(10	)
		(18	)		44			59			300

Income before income taxes		4,220			15,269			42,283			33,061

Income taxes		1,384			5,229			14,135			10,745


Net income	$	2,836		$	10,040		$	28,148		$	22,316



Per share data:

Basic earnings per share:	$	0.20		$	0.71		$	1.98		$	1.58

Diluted income per share:	$	0.20		$	0.70		$	1.97		$	1.56


Weighted-average shares		14,278			14,170			14,249			14,150
Effect of dilutive securities: employee stock options		66			114			65			122
Adjusted weighted-average shares		14,344			14,284			14,314			14,272

Depreciation and amortization included in expense above	$	4,615		$	3,537		$	13,045		$	10,456

Cash dividend declared per common share	$	0.10		$	0.10		$	0.30		$	0.30

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