Exhibit 99.1

For further information contact:

Dailey J. Berard                                            Pete Roman
Chief Executive Officer                               Chief Financial Officer
(318) 367-8291                                              (318) 373-5506

New  Iberia,  Louisiana  -  UNIFAB  International, Inc. (NASDAQ-UFAB) announced
today that it has signed a letter of intent with the shareholders of Allen Tank
Inc. ("Allen Tank") to merge the two companies.

Allen Tank designs and manufactures oil  and  gas  processing  systems  at  its
facility  located  in  New  Iberia, Louisiana. Completion of the transaction is
subject to various conditions,  including  the  satisfactory  completion of due
diligence by UNIFAB International, Inc. and Allen Tank. No assurance  is  given
that the acquisition will be successfully completed.

In the 52-week period ended December 27, 1997, Allen Tank had revenues of $40.6
million  and  generated  pretax  income  of  $1.8 million. Allen Tank currently
employs  over  100  production  employees  and nearly  150  emlpoyees  overall.
Subsequent to the merger, Allen Tank will operate  as a wholly owned subsidiary
of UNIFAB.

UNIFAB International, Inc. is an industry leader in  the  custom fabrication of
decks,  equipment  modules  and  other  structures used in the development  and
production of offshore oil and gas reserves.   The Company also refurbishes and
retrofits existing jackets and decks and performs  offshore  piping  hookup and
platform  maintenance  services.  Dailey  J.  Berard  serves  on  the Louisiana
Workforce  Commission  and  other  task forces that are working to improve  the
training and education of the workforce of Louisiana.

Statements made in this news release  regarding  UNIFAB's  expectations  as  to
future operations of UNIFAB and Allen Tank and other statements included herein
that  are not statements of historical fact are forward-looking statements that
depend  upon  the  following  factors,  among  others: continued demand for the
services provided by UNIFAB and Allen Tank, availability  of skilled employees,
and UNIFAB's ability to integrate and manage the acquired business.  Should any
of these factors not continue as anticipated, actual results  and  plans  could
differ materially from those expressed in the forward-looking statements.