Hanover Compressor Company Agrees to Sell U.S. Amine Treating Rental Assets to Crosstex Energy Services

Hanover Compressor Company (NYSE:HC), a global marketleader in full service natural gas compression and a leading providerof service, fabrication and equipment for oil and natural gasproduction, processing and transportation applications, announcedtoday that it has executed an agreement to sell the U.S. aminetreating rental assets of its subsidiary, Hanover Compression LimitedPartnership, to Crosstex Energy Services, L.P. for approximately $52million. The transaction is subject to customary due diligence. Uponclosing, Hanover expects to record a gain from the sale.

The companies also announced that they have entered into athree-year strategic alliance for compression services and equipment.

This transaction, which has been approved by the Board ofDirectors of both Hanover and Crosstex, is expected to be completed inFebruary 2006.

About Hanover Compressor Company

Hanover Compressor Company (NYSE: HC) is a global market leader infull service natural gas compression and a leading provider ofservice, fabrication and equipment for oil and natural gas production,processing and transportation applications. Hanover sells and rentsthis equipment and provides complete operation and maintenanceservices, including run-time guarantees for both customer-ownedequipment and its fleet of rental equipment. Founded in 1990,Hanover's customers include both major and independent oil and gasproducers and distributors as well as national oil and gas companies.

Forward-looking Statements

Certain matters discussed in this presentation are"forward-looking statements" intended to qualify for the safe harborsestablished by the Private Securities Litigation Reform Act of 1995and Section 21E of the Securities Exchange Act of 1934, as amended.These forward-looking statements can generally be identified as suchbecause of the context of the statement or because the statementincludes words such as "believes," "anticipates," "expects,""estimates," or words of similar import. Similarly, statements thatdescribe Hanover's future plans, objectives or goals or futurerevenues or other financial measures are also forward-lookingstatements. Such forward-looking statements are subject to risks anduncertainties that could cause our actual results to differ materiallyfrom those anticipated as of the date the statements were made. Theserisks and uncertainties include, but are not limited to: our inabilityto renew our short-term leases of equipment with our customers so asto fully recoup our cost of the equipment; a prolonged substantialreduction in oil and natural gas prices, which could cause a declinein the demand for our compression and oil and natural gas productionand processing equipment; reduced profit margins or the loss of marketshare resulting from competition or the introduction of competingtechnologies by other companies; changes in economic or politicalconditions in the countries in which we do business, including civiluprisings, riots, terrorism, the taking of property without faircompensation and legislative changes; changes in currency exchangerates; the inherent risks associated with our operations, such asequipment defects, malfunctions and natural disasters; governmentalsafety, health, environmental and other regulations, which couldrequire us to make significant expenditures; our inability toimplement certain business objectives, such as international expansion(including our ability to timely and cost-effectively execute projectsin new international operating environments), integrating acquiredbusinesses, generating sufficient cash, accessing capital markets,refinancing existing or incurring additional indebtedness to fund ourbusiness, and executing our exit and sale strategy with respect toassets classified on our balance sheet as assets held for sale; risksassociated with any significant failure or malfunction of ourenterprise resource planning system and our inability to comply withcovenants in our debt agreements and the decreased financialflexibility associated with our substantial debt. A discussion ofthese and other factors is included in the Company's periodic reportsfiled with the Securities and Exchange Commission.