HOUSTON, July 31 /PRNewswire/ --  Hanover Compressor Company (NYSE: HC)
today reported record revenues and earnings for the quarter ended
June 30, 1997.  Revenues amounted to $49.2 million, increasing 62% over the
1996 second quarter, as a result of the continuing growth of the Company's
natural gas compressor rental fleet as well as strong demand in both the
compressor fabrication and production equipment divisions.  Net income
available to common stockholders was $3.5 million, increasing 106% over 1996.
Second quarter 1997 per common share earnings were $0.14, a 100% increase over
$0.07 for the comparable period in 1996.
    Year-to-date 1997 revenues of $90.1 million increased 61% over the six
month period ended June 30, 1996.  Net income available to common stockholders
for 1997 of $6.9 million reflects a 104% increase over the 1996 six month
period with 1997 six month per common share earnings of $0.28 increasing 87%
over the six month 1996 amount.
    "The Company's outstanding results for the first two quarters of 1997 are
attributable to the overall strength in the natural gas compression market as
well as the continuing growth of the Company's natural gas compressor rental
fleet," reported Mike McGhan, President and Chief Executive Officer, who also
commented that, "We are keenly aware of the growth opportunities currently
existing in the natural gas compression industry, and, with the completion on
July 1, 1997 of the Company's initial public offering, Hanover is even better
positioned to take advantage of these opportunities."
    -- The Company's natural gas compression rental fleet increased by 73,000
horsepower since December 31, 1996 and amounts to 643,000 horsepower at
June 30, 1997.  Domestic rental and maintenance revenues for the second
quarter of 1997 amounted to $20.9 million, increasing 26% over 1996, with a
1997 gross profit margin of 61%.  International rental and maintenance
revenues were $5.4 million during the second quarter of 1997, which is an
increase of 99% over 1996.  The second quarter 1997 gross profit margin from
international operations amounted to 61%.
    -- Compressor fabrication revenues amounted to $13.9 million during the
second quarter of 1997, an increase of 175% over 1996, with a gross profit
margin of 13.0% being recognized during the 1997 quarter.
    -- Revenues from production equipment fabrication amounted to $8.7 million
during the second quarter of 1997, increasing 45% over 1996, resulting in a
gross profit margin of 28% during the 1997 quarter.
    Hanover Compressor Company, based in Houston, Texas is a leading provider
of natural gas compression rental, operations and maintenance services in the
United States and certain international markets.  In addition, Hanover is a
leading fabricator of natural gas compression units and oil and natural gas
production equipment.

                            RESULTS OF OPERATIONS
                  (in thousands, excepts per share amounts)

                                        Three months        Six months
                                       ended June 30,      ended June 30,
                                      1996       1997     1996       1997

    Revenues:
      Rentals and maintenance        $19,282    $26,256  $37,122    $50,576
      Compressor fabrication           5,080     13,946    6,846     21,473
      Production equipment
        fabrication                    5,982      8,690   11,656     17,362
      Other                               90        305      278        709
      Total                           30,434     49,197   55,902     90,120

    Expenses:
      Rentals and maintenance          7,367     10,206   14,119     19,661
      Compressor fabrication           4,323     12,138    5,839     18,497
      Production equipment
        fabrication                    4,515      6,236    8,685     12,226
      Selling, general and
        administrative                 3,826      4,713    7,621      9,405
      Depreciation and amortization    5,136      7,059    9,650     13,305
      Interest expense                 1,519      3,099    2,738      5,670
      Total                           26,686     43,451   48,652     78,764

    Income before income taxes         3,748      5,746    7,250     11,356
    Provision for income taxes         1,553      2,270    2,863      4,486
    Net income                        $2,195     $3,476   $4,387     $6,870

    Net income available to
      common stockholders:
      Net income                      $2,195     $3,476   $4,387     $6,870
      Dividends on preferred
        stock                           (514)      ---    (1,027)      ---
      Net income available to
        common stockholders            1,681      3,476    3,360      6,870
    Weighted average common
        and common equivalent
        shares outstanding            22,583     24,538   22,529     24,515
    Earnings per common share          $0.07      $0.14    $0.15      $0.28

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