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Conrad Industries Awarded Contract

Maritime Activity Reports, Inc.

September 30, 2003

Conrad Industries has been awarded a $5.5 million contract for the United States Army Corps of Engineers. The contract award calls for the design and construction of a 255-foot crane barge with a fully equipped machine and fabrication shop. When delivered, the vessel's primary mission shall be the support of maintenance dredging and repair of navigation structures and facilities for the Nashville District of the United States Army Corps of Engineers. Kenneth G. ("Jerry") Myers, Jr., Conrad's President and CEO commented, "We are excited about the opportunity to continue our working relationship with the Corps of Engineers. The award of this contract, coupled with recent contract awards by the Corps for four towboats and an additional crane barge, now brings our backlog just for the Corps to over $30 million. This award is indicative of the Corps' confidence in the Company's ability to timely deliver high quality, cost effective vessels from each of our shipyards. After an extended design phase, production will be performed at our Conrad Shipyard facility in Morgan City in mid-2004."

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