Hanover Compressor Announces Public Offering of Senior Notes and Convertible Senior Notes

December 8, 2003

HOUSTON--(BUSINESS WIRE)--Dec. 8, 2003--Hanover Compressor Company (NYSE:HC), a global market leader in full service natural gas compression and a leading provider of service, fabrication and equipment for oil and natural gas processing and transportation applications, announced today that it intends to offer, subject to market conditions and other factors, $200 million of Senior Notes due 2010 and $100 million of Convertible Senior Notes due 2014. Hanover intends to use the net proceeds from the offerings to repay existing indebtedness.

The offering and sale of the Senior Notes and Convertible Senior Notes will be pursuant to an effective shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission.

JPMorgan and Citigroup are joint book-running managers for the Senior Notes offering. When available, copies of the preliminary prospectus supplement relating to the offering of the Senior Notes may be obtained from the offices of J.P. Morgan Securities Inc., Chase Distribution & Support Service, 1 Chase Manhattan Plaza, Floor 5B, New York, NY 10081 (copies can also be obtained by e-mail at: [email protected]), and the offices of Citigroup Global Markets Inc., 140 58th Street, Brooklyn, NY 11220, Attention: Prospectus Department, Floor 8-I.

JPMorgan and Credit Suisse First Boston are joint book-running managers for the Convertible Senior Notes offering. When available, copies of the preliminary prospectus supplement relating to the Convertible Senior Notes offering may be obtained from the office of J.P. Morgan Securities Inc., Chase Distribution & Support Service, 1 Chase Manhattan Plaza, Floor 5B, New York, NY 10081 (copies can also be obtained by e-mail at [email protected]), and from the office of Credit Suisse First Boston, Prospectus Department, One Madison Avenue, New York, New York 10010.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described above. An offering of any such securities will be made only by means of a prospectus. Any such prospectus shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

    CONTACT: Hanover Compressor Company, Houston
             Lee Beckelman, 281-447-8787

    SOURCE: Hanover Compressor Company