Oceaneering Announces Dry Deck Shelter Planning Yard and Maintenance Contract

September 5, 2006 – Houston, TX – Oceaneering International, Inc. (NYSE:OII) announced the award of a contract from Naval Sea Systems Command (NAVSEA) for the Dry Deck Shelter (DDS) Planning Yard and Maintenance.  The contract is indefinite delivery, indefinite quantity with a potential value of $69 million over a seven-year term.

The contract encompasses engineering and technical services for life cycle support of the Navy’s DDSs.  The contract also includes DDS depot level maintenance for the DDS fleet, as well as unplanned repairs and maintenance at any free-world port.  The DDS is a special purpose Deep Submergence System that supports the U. S. Navy’s Special Operating Forces, commonly known as SEALS, when embarked on U. S. Navy nuclear submarines.

John R. Kreider, Senior Vice President, Advanced Technologies, stated, “We are extremely pleased NAVSEA has selected the Oceaneering team for this important program.  The Navy’s DDS program is a key component of our nation’s defense.  We are proud to be a part of the outstanding Navy contractor team supporting our Special Operating Forces, and we look forward to sustaining support in submarine and special operations equipment maintenance for the U.S. Navy.”

Oceaneering, as prime contractor, will be supported by key subcontractors: Lockheed Martin Systems Management, Perot Systems Government Services, General Dynamics Electric Boat Division, Epsilon Systems Solutions, Inc., and Penn State Applied Research Laboratory.

Oceaneering is an advanced applied technology company that provides engineered services and hardware to Customers who operate in the marine, space, and other harsh environments.  Oceaneering’s services and products are marketed worldwide to oil and gas companies, government agencies, and firms in the aerospace and marine engineering and construction industries.

For further information, contact Tom Stowell, Vice President and General Manager, Oceaneering International, Inc., Marine Services Division, 700 Rosemont Avenue, Chesapeake, VA 23324; Telephone 757-545-2200; E-mail tstowell@oceaneering.com; or Jack Jurkoshek, Manager Investor Relations, Oceaneering International, Inc., 11911 FM 529, Houston, Texas 77041; Telephone 713-329-4670; E-mail investorrelations@oceaneering.com.

PR 957

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