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Deep Down Expanding Buoyancy Facilities to Serve Growing Deepwater Market

January 26, 2009

HOUSTON, Jan. 26 /PRNewswire-FirstCall/ — Deep Down, Inc.
(OTC Bulletin Board: DPDW) today announced expansion plans of its buoyancy
manufacturing facility and flotation testing services in response to recent
orders and anticipated demand for its drilling riser buoyancy system used in
ultra-deepwater production. The facility’s expansion effectively doubles its
buoyancy manufacturing capacity.

Deep Down acquired the Biddeford, Maine based facility, Flotation
Technologies, Inc., in June of 2008 in conjunction with its continuing
strategy to expand services in the deepwater and ultra-deepwater drilling and
production markets. Subsequently, the Company announced an $11 million order
for its deepwater drilling riser buoyancy modules to be installed on the Delba
III semisubmersible drilling rig, which has a long-term contract to drill in
Brazilian waters.

“Deep Down’s primary opportunities are in the growing deepwater drilling
and production services sector,” commented Ronald E. Smith, Deep Down’s
president and chief executive officer. “To ensure our Company is prepared to
meet demand, we have committed over $2 million to expand production and
testing service capabilities. We have undertaken this expansion to advance
Deep Down’s strategy to become a leader within the deepwater buoyancy
marketplace.”

Deep Down’s newly engineered drilling riser buoyancy solution, with its
patent-pending CoreTec(TM) syntactic foam buoyancy technology, has solved many
difficulties over current buoyancy products because it is inherently stronger
at depth and provides a longer service life, which ultimately translates into
a much more cost-effective drill riser buoyancy solution.

Ground has already been broken on the first phase of the expansion
project, with construction to improve the Maine facility’s shipping access and
operational functionality. The second phase of the project, which includes
the Maine facility’s expansion and a Texas-based testing service capability,
is slated to begin later this quarter.

About Deep Down, Inc.

Deep Down, Inc. is an oilfield services company serving the worldwide
offshore exploration and production industry. Deep Down’s proven services and
technological solutions include distribution system installation support and
engineering services, umbilical terminations, loose-tube steel flying leads,
distributed and drill riser buoyancy, ROVs and ROV tooling, as well as marine
vessel automation, control, and ballast systems. Deep Down supports subsea
engineering, installation, commissioning, and maintenance projects through
specialized, highly experienced service teams and engineered technological
solutions. The company’s primary focus is on more complex deepwater and ultra-
deepwater oil production distribution system support services and
technologies, used between the platform and the wellhead. Deep Down provides
these services through its four subsidiaries. More information about Deep Down
is available at http://www.deepdowncorp.com, by contacting the company at
(281) 862-2201 x250, or ir@deepdowninc.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.


Source: newswire



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