Oceaneering International, Inc. (NYSE:OII) announced that it intends to submit a revised proposal to NASA for development and production of the Constellation Space Suit System (CSSS). NASA's initial contract award to Oceaneering was terminated for the convenience of the government. Based on a narrow compliance issue, NASA intends to re-open limited discussions, request new final proposal revisions, and re-award the contract. The Government Accountability Office (GAO) has dismissed the protest by a competitor of the initial contract award.

Mark Gittleman, Vice-President and General Manager of Oceaneering Space Systems, stated, "While we are disappointed that NASA terminated our contract, we believe in their process and support their decision. We are pleased the GAO has dismissed the protest. We look forward to submitting a limited final proposal revision as required by NASA and to a timely contract award."

Jim Buchli, Vice President & CSSS Program Manager, emphasized, "We remain confident our offering will continue to be judged as the best value to the government. Our world-class and highly experienced contractor team offered an innovative and comprehensive solution to develop and produce the next spacesuit for NASA. We remain fully committed and prepared to meet all requirements of the Constellation spacesuit program."

Oceaneering is a global provider of engineered services and products primarily to the offshore oil and gas industry, with a focus on deepwater applications. Oceaneering Space Systems, located in Houston, Texas immediately adjacent to NASA JSC, supports NASA in training astronauts for extravehicular activity, and designs, develops, tests, produces, and certifies astronaut equipment, robotic systems, and thermal protection systems for NASA, the Department of Defense, and commercial applications.

For further information, please contact Jim Buchli, CSSS Program Manager, Oceaneering Space Systems, 16665 Space Center Boulevard, Houston, Texas 77058; Telephone 281-228-5300; Fax 281-228-5547; E-mail jbuchli@oceaneering.com, or Jack Jurkoshek, Director Investor Relations, Oceaneering International, Inc., 11911 FM 529, Houston, Texas 77041; Telephone 713-329-4670; Fax 713-329-4653; E-Mail investorrelations@oceaneering.com.