EXHIBIT 99.1

NEWS RELEASE

For further information contact:
Greg Rosenstein                          Cathy Green
Manager of Investor Relations            Chief Financial Officer
(713) 430-1100                           (713) 430-1100
FOR IMMEDIATE RELEASE
MONDAY, SEPTEMBER 8, 1997

  AMERICAN OILFIELD DIVERS, INC. ANNOUNCES PRELIMINARY OUTLOOK
                     FOR THIRD QUARTER 1997

  Houston, TX -- American Oilfield Divers,  Inc.  (NASDAQ: DIVE)
announced  today  that  it  is  not  likely  to  meet  analysts'
expectations  for  its  third quarter, which ends September  30,
1997.

  "While activity levels  are  strong in our core Gulf of Mexico
diving  and vessel market, we experienced  some  one-time,  non-
recurring  events during the third quarter which will reduce our
earnings potential  during  the period," said Rod Stanley, AOD's
President and Chief Executive Officer.  "These are as follows:

  (1)  Closure  of our Kansas inland  diving  office  and  other
business consolidation  costs  resulting  in one-time write offs
and  reserves of approximately $550,000.  These  decisions  have
been taken  to  reduce  the  Company's SG&A and better focus the
Company's resources.

  (2)   Write   off  of  certain  intangible   assets   totaling
approximately  $2,000,000   which   will   better   reflect  our
anticipated net realizable value of these assets.

  (3) Reduced performance in certain business areas attributable
to one-time non-recurring events resulting in a reduction of net
income of approximately $1,400,000.  These events include:

     - two of the Company's largest vessels were out  of service
due  to  installation  of  new equipment and repair for a longer
period than anticipated.   Both vessels are now offshore working
at favorable rates;

     - timing of delivery of  the  Company's pipeline connectors
in spite of a strong backlog and strong  year-to-date results in
that area;

     -  deductive change order on the Company's  Inland  group's
Brownsville  project  resulting  in lower than anticipated gross
margins for the third quarter.

  "Although our long-term strategy  is  to expand into deepwater
and  international  markets through the introduction  of  larger
dynamically positioned  vessels  such  as the American Defender,
and remote intervention technologies such as work-class remotely
operated vehicles and atmospheric diving  systems, we must focus
in  the  short  term  on  strengthening  our  core  business  by
upgrading our asset base and analyzing those non-core assets and
businesses that do not create value," Stanley said.  "As such, I
believe  these  one-time  events  will  better  position AOD  to
achieve  its  long-term  strategic  objectives  and become  more
focused and competitive in those markets that leverage  our core
business.   We  remain  very  positive on both our core business
operations and our long-term strategic objectives."

  Statements in this press release  that  are  not statements of
historical  fact are forward-looking statements involving  risks
and  assumptions   that  could  cause  actual  results  to  vary
materially from those  predicted, including, among other things,
prices  of crude oil and  natural  gas,  weather  conditions  in
offshore  markets,  capital  expenditures  by  customers and the
Company's  ability  to  procure  large turnkey projects  and  to
penetrate deepwater markets.

  American  Oilfield Divers, Inc.,  is  a  leading  provider  of
subsea services  and  related products, including diving, marine
construction and environmental  services to the offshore oil and
gas industry, primarily in the U.S.  Gulf  of  Mexico, U.S. West
Coast, internationally and to certain U.S. inland customers.

                            # # # #