Deep Down to Acquire Flotation Technologies

HOUSTON, April 17 /PRNewswire-FirstCall/ -- Deep Down, Inc.
(OTC Bulletin Board: DPDW) today announced it has executed a Stock Purchase
Agreement to purchase all of the outstanding capital stock of Flotation
Technologies, Inc.
Headquartered in Biddeford, Maine, Flotation Technologies is a recognized
leader in the design and manufacture of deepwater buoyancy systems,
specializing in Flotec(TM) syntactic foam and polyurethane elastomer products.
With extensive engineering, design, fabrication, and analysis capabilities,
Flotation Technologies provides quick turnaround, cost-effective buoyancy and
elastomer products to the worldwide oceanographic, offshore energy, seismic,
and military markets. Within the past few years, Flotation Technologies has
received its approved vendor status for the supply of engineered products such
as distributed buoyancy, installation buoyancy and bend limiting products from
numerous customers including Aker Kvaerner, Cooper Cameron, Chevron, Devon
Energy, Exxon Mobil, Oceaneering Multiflex, Petrobras, Shell, Statoil,
Technip, and Wellstream International. More information can be obtained at
http://www.flotec.com.
Unaudited financial information provided by the management of Flotation
Technologies indicates that revenue for the latest twelve months ending March
31, 2008, was approximately $17.27 million, with pretax income of
$4.84 million, and EBITDA of $5.26 million, adjusted for certain nonrecurring
expenses and a gain on sale of real estate assets. Financial results of
operations for the years ended December 31, 2007 and 2006, will be presented
when audits are finalized.
"The total purchase price for the acquisition is expected to be
approximately $23.3 million. Flotation Technologies' revenue for the year
ended December 31, 2007, was approximately double the revenue realized in the
prior year. According to Quest Subsea Forecast (October 2007), capital
expenditures in the offshore energy industry are expected to experience
significant growth for the next several years. Our strategy is to participate
in that growth. Buoyancy will become more important as the offshore energy
industry continues its trend toward exploration and development activities in
ultra deep waters. This acquisition will give Deep Down a major product line,
position the Company to become a leader in flotation systems, and increase our
presence in deepwater operations," commented Robert E. Chamberlain, Jr., Deep
Down's chairman and chief acquisition officer.
Ronald E. Smith, Deep Down's president and chief executive officer
commented, "We are very excited about this acquisition. Our strategy is to
work closely with management to expand their existing business and explore new
areas of opportunity. Our view of the future of subsea equipment involves
structural integration of buoyancy into various components of the undersea
distribution system. Due to our prominence in installation activities of
subsea equipment throughout the world, our customers are increasingly asking
us to supply the equipment and systems we install. Where appropriate, we
intend to manufacture high-demand technology-advantaged products in
high-growth markets. Our strategy is to become a major player in many facets
of the offshore deepwater industry."
Deep Down's closing of the purchase of Flotation Technologies remains
subject to several conditions, including Deep Down's obtaining financing for
the payment of the purchase price.
About Deep Down, Inc.
Deep Down specializes in the provision of innovative solutions,
installation management, engineering services, support services, custom
fabrication and storage management services for the offshore subsea control,
umbilical, and pipeline industries. The company fabricates component parts of
subsea distribution systems and assemblies that specialize in the development
of subsea fields and tie backs. These items include umbilicals, flow lines,
distribution systems, pipeline terminations, controls, winches, and launch and
retrieval systems, among others. Deep Down provides these services from the
initial field conception phase, through manufacturing, site integration
testing, installation, topside connections, and the final commissioning of a
project.
The Company's ElectroWave subsidiary offers products and services in the
fields of electronic monitoring and control systems for the energy, military,
and commercial business sectors. ElectroWave designs, manufactures, installs,
and commissions integrated PLC and SCADA based instrumentation and control
systems, including ballast control and monitoring, drilling instrumentation,
vessel management systems, marine advisory systems, machinery plant control
and monitoring systems, and closed circuit television systems.
The Company's Mako subsidiary serves the growing offshore petroleum and
marine industries with technical support services, and products vital to
offshore petroleum production, through rentals of its remotely operated
vehicles (ROV), topside and subsea equipment, and diving support systems used
in diving operations, maintenance and repair operations, offshore
construction, and environmental/marine surveys.
The Company's strategy is to consolidate service providers to the offshore
industry, as well as designers and manufacturers of subsea, surface, and
offshore rig equipment used by major, independent, and foreign national oil
and gas companies in deep-water exploration and production of oil and gas
throughout the world. Deep Down's customers include BP Petroleum, Royal Dutch
Shell, Exxon Mobil Corporation, Devon Energy Corporation, Chevron Corporation,
Anadarko Petroleum Corporation, Marathon Oil Corporation, Kerr-McGee
Corporation, Nexen Inc., BHP, Amerada Hess, Helix, Oceaneering International,
Inc., Subsea 7, Inc., Transocean Offshore, Diamond Offshore, Marinette Marine
Corporation, Acergy, Veolia Environmental Services, Noble Energy Inc., Aker
Kvaerner, Cameron, Oil States, Dril-Quip, Inc., Nexans, Cabett, JDR, and Duco,
among others. For further company information, please visit
http://www.deepdowninc.com, http://www.electrowaveusa.com and
http://www.makotechnologies.com.
One of our most important responsibilities is to communicate with
shareholders in an open and direct manner. Comments are based on current
management expectations, and are considered "forward-looking statements,"
generally preceded by words such as "plans," "expects," "believes,"
"anticipates," or "intends." We cannot promise future returns. Our
statements reflect our best judgment at the time they are issued, and we
disclaim any obligation to update or alter forward-looking statements as the
result of new information or future events. Deep Down urges investors to
review the risks and uncertainties contained within its filings with the
Securities and Exchange Commission.
SOURCE Deep Down, Inc.

Steven Haag, Investor Relations of Deep Down, Inc., +1-281-862-2201, fax,
+1-281-862-2522, ir@deepdowninc.com