Cuming Corporation to be Acquired by Deep Down, Inc.

AVON, Mass., May 3 /PRNewswire/ -- Cuming Corporation, a world leader in the design and manufacture of technologically advanced syntactic foam flotation products and insulation materials for the offshore oil and gas industry, today announced that it will be acquired by Houston-based Deep Down, Inc. (OTC Bulletin Board: DPDW).

"The worldwide search for offshore energy has resulted in unprecedented growth for our company," said John Cuming, Chairman/CFO and principal owner of Cuming Corporation. "We are enjoying record sales and order backlog and we have quadrupled our production capacity in order to meet the huge demand for our products. At the same time, we are searching for ways to expand our business into new overseas markets such as Brazil and the Far East. It makes sense for us to join forces with Deep Down and integrate our product line with Deep Down's other oil and gas and marine businesses such as Flotation Technologies. This acquisition will enable us to better serve our existing customers as well as hopefully gain new ones."

"Cuming is in the midst of record levels of backlog and bidding activity due to the robust expansion in deepwater drilling and production activities and the Company's strong reputation for providing the highest quality products in the industry," explained Larry Parkinson, President, Cuming Corporation. "Growth of the magnitude we are projecting will require increased capital and resources that are more readily available from a publicly traded company such as Deep Down. As such, the Company has found an acquisition partner that can capitalize and leverage the Cuming brand name, reputation, products and customer relationships to further exploit the favorable outlook in the deepwater market. In addition, we feel this is the right transaction for growing our business and providing the best opportunities for our employees, who are the reason we have been so successful."

Audited financial information provided by Cuming Corporation indicates that revenue for the last twelve months, ending December 31, 2009 was approximately $73.3 million with a gross profit of $15.0 million. The total price for the acquisition including the assumption of certain liabilities is $50.0 million. Deep Down's closing of the purchase of Cuming Corporation remains subject to several conditions including Deep Down obtaining financing through a private placement offering for the payment of the purchase. Cuming management estimates that a closing will take place in approximately one month.

About Cuming Corporation

Cuming Corporation, headquartered in Avon, Massachusetts with approximately 250 employees, is a diversified high technology manufacturing company with divisions making products and materials for offshore oil and gas exploration and production. Cuming's C-FLOAT buoyancy products are widely used to support both drilling and production risers in deepwater operations, and have played a vital role in establishing many new depth records. C-THERM insulation products manufactured at our New Iberia, LA facility are the highest performance materials available for protecting ultradeep high temperature wells, and the C-TECH product line also manufactured in New Iberia provides unique properties guarding subsea well casings. The company sponsors an aggressive R&D program, has secured comprehensive patent protection for its key technologies, and has received awards for innovation and engineering excellence. As of March 31, 2010, the Company had booked backlog and signed letters of intent representing $138 million and $32 million of orders, respectively. For more information, visit www.cumingcorp.com.

About Deep Down

Deep Down, Inc., headquartered in Houston, Texas is an oilfield services company serving the worldwide offshore exploration and production industry. Its services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube flying leads, flotation and drill riser buoyancy, ROVs and toolings. Deep Down supports subsea engineering, installation, commissioning, and maintenance projects through specialized, highly experienced service teams and engineered technological solutions. Its 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. It provides these services through its four subsidiaries. More information about Deep Down is available at www.deepdowncorp.com, by contacting the company at (281) 517-5000, or [email protected].

SOURCE Cuming Corporation