SOURCE: Kahn Gauthier Swick, LLC

February 29, 2008 00:17 ET

INVESTOR ALERT: KGS Announces the Initial Filing of Securities Class Action Lawsuit Against Superior Offshore International, Inc. -- DEEP

NEW ORLEANS, LA--(Marketwire - February 29, 2008) - Kahn Gauthier Swick, LLC ("KGS") has filed a class action lawsuit against Superior Offshore International, Inc. ("Superior Offshore" or the "Company") (NASDAQ: DEEP) in the United States District Court for the Eastern District of Louisiana, on behalf of shareholders who purchased the common stock of the Company in connection with Superior Offshore's Initial Public Offering ("IPO") on or about April 20, 2007, or who purchased shares thereafter in the open market through January 9, 2008. No class has yet been certified in this action.

UNLESS A CLASS IS CERTIFIED, YOU ARE NOT PERSONALLY REPRESENTED BY COUNSEL UNLESS YOU RETAIN AN ATTORNEY.

If you would like to discuss your legal rights, you may e-mail or call KGS Managing Partner Lewis Kahn, without obligation or cost to you, toll free 1-866-467-1400, ext. 100, via cell phone after hours at 504-301-7900, or by email at lewis.kahn@kgscounsel.com.

Superior Offshore, certain of its officers and directors, and the Company's underwriters -- collectively, "defendants" -- are charged with including, or allowing the inclusion of, materially false and misleading statements in the Registration Statement and Prospectus issued in connection with the IPO, in violation of the Securities Act of 1933.

On April 20, 2007, Superior Offshore and Company insiders sold over 10 million shares of common stock to the public, raising gross proceeds in excess of $152 million. However, unbeknownst to investors at the time of the IPO, the Company's core business was not performing according to plan, its core market in the Gulf of Mexico was declining, and defendants would be forced to immediately transform and reorganize the Company, and enter into new, untested markets such as Deep Water and International Operations. Moreover, at the time of the IPO, Superior Offshore was not operating according to plan, such that the Company's sales already had been, and foreseeably would continue to be, adversely affected.

Beginning on August 14, 2007 -- after defendants and other Company insiders liquidated over $49 million of their personally held shares -- Superior Offshore revealed the truth about the Company, including that the problems existing at the time of the IPO would result in extremely disappointing results for the foreseeable near-term, and would force defendants to reorganize and transform the Company. Later, on November 14, 2007, shares again declined after defendants belatedly revealed that the Company was operating even below its recently revised forecasts, and that its core business was operating even worse than previously disclosed. On January 9, 2008, the Company announced that it was suspending its prior substantially downward revised guidance.

Following these belated disclosures, shares of Superior Offshore fell from their offering price of $15 per share to approximately $3.50 per share as a direct result of defendants' belated disclosures.

If you wish to serve as lead plaintiff in this class action lawsuit, you must move the Court no later than April 28, 2008. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you would like to discuss your legal rights, you may e-mail or call KGS Managing Partner Lewis Kahn, without obligation or cost to you, toll free 1-866-467-1400, ext. 100, after hours via cell phone 504-301-7900, or by email at lewis.kahn@kgscounsel.com. To learn more about KGS, you may visit www.kgscounsel.com. KGS focuses its practice on securities litigation, and has been appointed lead counsel in numerous federal securities cases.

SPECIAL NOTICE: While federal law does not prohibit other lawyers from "announcing" the filing of this class action through the issuance of other press releases, KGS is the law firm that researched, investigated, drafted and filed the securities case against Superior Offshore. If you are a Superior Offshore shareholder who decides to contact one of these lawyers, KGS reminds you to interview any such lawyer to assure that he or she understands the facts surrounding the substantive claims alleged in the complaint KGS has filed with the Court. Factors bearing on a law firm's ability to successfully prosecute this action and obtain a recovery for you include its lawyers' knowledge of applicable federal securities laws, the resources it will dedicate to prosecution of the case (including the number of lawyers the firm has available to prosecute this action) and the quality of the firm's work.

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