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Harrah's Vessel Construction Begins

PORT ARTHUR, Texas – (PRESS RELEASE) -- R&R Marine Fabrication and Drydock ("R&R Marine") announced today that it has begun construction of two specialty hull modules for Harrah's Entertainment, Inc. at its Port Arthur, Texas facility. The modules will form the base of Harrah's renovation and expansion of its Horseshoe Casino in Hammond, IN.

The keel for the first hull module was laid on August 8, 2006. When completed, each module will measure 276 feet long by 102 feet wide and 22 feet deep, weighing approximately 1,700 tons. The modules will be combined with four others being built elsewhere into a 564 foot long, 320 foot wide, and 22 foot deep casino vessel. Both modules being constructed by R&R Marine are expected to be completed in the first quarter of 2007.

"We are extremely pleased to enter into this agreement with Harrah's. With over 20 years of offshore and inland fabrication expertise it was only natural for us to look for new construction opportunities and our repair customers encouraged us to look at new construction," said Keal Woodruff, R&R Marine's co-owner. "This order will require the addition of approximately 100 new jobs and allows us to minimize any downturn in our repair business. It is another example of our ability to take on new challenges and build new relationships. The R&R Marine reputation for quality in the industry is due to its talented and dedicated local craftspeople. These are the people that step up to the challenges every single day and have made R&R Marine what it is today."

R&R Marine provides a full-range of repair, maintenance, conversion and drydock services to vessels in the maritime industry. The Company operates three facilities on the Texas Gulf-Intracoastal waterway servicing tankers, drill rigs, tugs, barges and other offshore support vessels. Additionally, the Company has the capability to construct new barges and boats.

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