HOUSTON--(BUSINESS WIRE)--March 15, 2005--Hanover Compressor Company (NYSE: HC) announced today that its Chairman, Victor Grijalva, has advised the Company that he will be retiring as Chairman after the May Annual Shareholders Meeting and that, at the Board's request, he has agreed to remain on the Board as an independent Director. Gordon T. Hall, a Hanover Director, has been selected to stand for election as Chairman of the Board at the annual organizational meeting of the Board of Directors on May 19, 2005.

Mr. Grijalva and Mr. Hall joined Hanover's Board as directors in early 2002 at a time when the Company was undergoing significant difficulties. Both are members of the Board that oversaw executive management changes, the resolution of lawsuits and the settlement of an SEC investigation as well as vast improvements in Hanover's corporate governance and operating disciplines.

"I congratulate Gordon on his appointment. He is an excellent candidate," said Mr. Grijalva. "The past three years have been challenging for the Company but significant progress has been made along several fronts," added Mr. Grijalva. "I believe that Hanover has a tremendous opportunity to improve its financial results gradually as it focuses on operations and growth opportunities. I have greatly enjoyed working with a very dedicated and talented group of fellow Board Members and Management. Together we have built a strong foundation of corporate governance and transparency."

Mr. Hall said: "It is through Victor's leadership that Hanover's shareholders, employees and customers will continue to reap the benefits of his business vision and commitment to leading-edge corporate governance. We are grateful that he will continue to support those efforts as a member of the Board and as Chairman of the Nominating and Governance Committee."

Mr. Hall is a retired Managing Director and Senior Advisor of Credit Suisse First Boston where he was a top-ranked oil field services analyst for twelve years. His breadth of industry experience and distinct focus on operational goals, incentives and returns should benefit Hanover. Mr. Hall also serves as a Director of the Hydril Company and as an advisor to several privately held and non-profit organizations.

"Hanover Compressor is fortunate to have such talented and active board members," commented John Jackson, President and Chief Executive Officer. "Victor and Gordon are two leaders who are trusted advisors and highly respected in our industry. I am grateful for their counsel and service to Hanover and look forward to their continued stewardship as we strive to significantly improve operating results."

About Hanover Compressor Company

Hanover Compressor Company (NYSE: HC) is 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. Hanover sells and rents this equipment and provides complete operation and maintenance services, including run-time guarantees for both customer-owned equipment and its fleet of rental equipment. Founded in 1990 and a public company since 1997, Hanover's customers include both major and independent oil and gas producers and distributors as well as national oil and gas companies. More information can be found on the Internet (www.hanover-co.com).

CONTACT: Hanover Compressor Company
Media Relations Inquiries:
Richard Goins, 832-554-4918
rbgoins@hanover-co.com
or
Investor Relations Inquiries:
Stephen York, 832-554-4856
syork@hanover-co.com

SOURCE: Hanover Compressor Company