FirstWave Reports First QuarterResults.

HOUSTON--(BUSINESS WIRE)--May 17, 1999--

FirstWave Marine, Inc. today reported revenues for the first quarter of 1999 of $25.9 million, an increase of 64% over the 1998 period of $15.8 million. The increase in revenues is primarily due to three full months of revenue generation from its

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter 1999 were $3.0 million as compared to $2.6 million in the same 1998 period. Results were positively impacted by the growth of new construction and rig related services at the Company's Galveston Operations. As is customary, the higher material component of new construction and rig related services had the effect of producing lower EBITDA margins than the Company's historical product mix, which was dominated by inland boat and barge repair and OSV repair and conversion. The current period EBITDA reflects a negative impact of approximately $500,000 related to disruptions caused by the Company's initiative to upgrade production and control systems at its recently acquired Galveston Island Facility.

FirstWave reported a net loss for the quarter of $636,000, or $0.05 per basic and diluted share. For the comparable 1998 period, income before extraordinary item was $72,000, or $0.01 per share. The loss for the quarter is primarily due to three full months interest on its 11% Senior Notes and the impact of the initiative at the Galveston Island Facility.

Weighted-average shares outstanding (basic and diluted) were 11,757,000 for both the 1999 and 1998 periods.

Frank Eakin, President of FirstWave said, "In the first quarter, FirstWave kicked off a global marketing initiative and added important new customers in all sectors, while continuing to institute its management systems at all facilities. Our record backlog in barge new construction has validated our strategy of developing a diversified service mix. While the energy sector is in a slowdown, new construction has helped us fully absorb our labor force in Galveston. We believe our success in avoiding layoffs and retaining skilled people will serve us well when the anticipated energy services upturn occurs."

FirstWave is a leading provider of shipyard and related services to the inland marine and offshore industries, with six shipyards in the Houston-Galveston area.

All historical information set forth herein is based upon

expectations and assumptions deemed reasonable by the Company

including such information relating to projected results and

growth. The Company can give no assurance that such expectations

and assumptions will prove to have been correct, and actual

results could differ materially from the information presented

herein. The Company's Form 10-K filed with the Securities and

Exchange Commission should be consulted for a description of risk

factors associated with an investment in securities of the

Company.