Delta Seaboard International, Inc.

("HMDI")

601 CIEN STREET, SUITE 235, KEMAH, TX 77565-3077

Tel: (281) 334-9479 Fax: (281) 334-9508

www.americanii.com email: amin@americanii.com

 

FOR IMMEDIATE RELEASE

DELTA SEABOARD INTERNATIONAL, INC.

REPORTS OPERATING RESULTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2010

Houston / Kemah, Texas – August 16, 2010 Delta Seaboard International, Inc. (OTCBB: HMDI) ("Delta") reported earnings before interest, taxes, depreciation and amortization (EBITDA) of $12,218, or $0.00 per share, for the three months ended June 30, 2010, compared to EBITDA for the three months ended June 30, 2009, which reflected a loss of $107,550, or $0.00 per share. Our net loss of $134,568, or $0.00 per share, for the three months ended June 30, 2010 included interest expense, taxes, and depreciation and amortization of $44,899, $4,878, and $97,009, respectively. Our net loss of $291,601, or $0.01 per share, for the three months ended June 30, 2009 included interest expense, taxes, and depreciation and amortization of $61,572, $5,639, and $116,840, respectively.

EBITDA for the six months ended June 30, 2010 reflected a loss of $506,438, or $0.01 per share, for the six months ended June 30, 2010, compared to EBITDA for the six months ended June 30, 2009, which reflected a loss of $241,768, or $0.01 per share. Our net loss of $802,290, or $0.01 per share, for the six months ended June 30, 2010 included interest expense, taxes, and depreciation and amortization of $85,265, $10,276, and $200,311, respectively. Our net loss of $597,252, or $0.01 per share, for the six months ended June 30, 2009 included interest expense, taxes, and depreciation and amortization of $114,603, $11,676, and $229,205, respectively.

During the three months ended June 30, 2010, Delta had revenues of $2,045,082, compared to $2,331,214 during the three-month period ended June 30, 2009, representing a decrease of $286,132, or 12.3%. During the six months ended June 30, 2010, Delta had revenues of $4,283,740, compared to $4,795,125 during the six-month period ended June 30, 2009, representing a decrease of $511,385, or 10.7%. The decrease in revenues is mainly due to a decrease in rig service revenues for the three and six months ended June 30, 2010, compared to the same periods in the prior year, of $815,544 and $1,016,049, respectively. Rig service revenues have decreased due to major maintenance on two rigs during 2010. One of the two rigs is back in service and maintenance on the second rig is near completion. The decrease in rig service revenues was partially offset by an increase in pipe sales for the three and six months ended June 30, 2010, compared to the same period in the prior year, of $529,412 and $504,664, respectively. Pipe sales have increased due to increased drilling activity in the oil and gas industry.

Operating expenses decreased by $352,630, to $2,205,635 for the three months ended June 30, 2010, compared to operating expenses of $2,558,265 for the three months ended June 30, 2009. Operating expenses declined due to decreased expenses associated with rig service revenues. Operating expenses increased by $499,505, to $5,788,924 for the six months ended June 30, 2010, compared to operating expenses of $5,289,419 for the six months ended June 30, 2009. Cost of sales for the six months ended June 30, 2010 was $2,406,385, compared to $2,008,983 during the same period in the prior year, an increase of $397,402. The increase in cost of sales was due to the increase in pipe sales during the six months ended June 30, 2010. Selling, general and administrative expenses were $3,382,539 for the six months ended June 30, 2010, compared to $3,280,436 for the six-month period ended June 30, 2009, an increase of $102,103 from the prior period. The increase in selling, general and administrative expenses is due primarily to non-cash stock-based compensation of $858,790 primarily relating to consideration provided for the executive officers of Delta Seaboard for extending their employment agreements. This increase was offset significantly by lower operating expenses associated with the decline in rig service revenues.

Other income during the three-month period ended June 30, 2010 was $30,863, compared to other expenses of $58,911 during the same period in the prior year, an increase in other income of $89,774 from the prior period. Other income during the three-month period ended June 30, 2010 included $76,710 for a bankruptcy settlement with one of Delta's customers. Other income during the six-month period ended June 30, 2010 was $713,170, compared to other expenses of $91,282 during the same period in the prior year, and increase in other income of $804,452 from the prior period. Other income increased for the six months ended June 30, 2010 compared to the prior period, mainly due to the receipt of a $700,000 cash settlement for its claims in an insurance lawsuit.

For more detailed information, please refer to our June 30, 2010 Form 10-Q filing with the SEC, which was filed on August 16, 2010.

Forward-Looking Statements:

This press release may contain forward-looking statements, including information about management’s view of the Company’s future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 (the "Act"). All statements other than statements of historical information provided herein may be deemed to be forward-looking statements. Without limiting the foregoing, the words "believes", "anticipates", "plans", "expects" and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those that we may anticipate reflected by our subsidiaries' operations include without limitations, growth in the energy sector and in the oil and gas service industry, increased levels of competition, new products and technology changes, and the market for pipes, the rules of regulatory authorities and risks associated with any potential acquisitions. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis, judgment, belief or expectation only as of the date hereof. Finally, the Company undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by the Company.

Investor Relations: Rebekah Ruthstrom Tel: 281-334-9479 email: amin@americanii.com