EXHIBIT 99.1

	Universal Compression Holdings, Inc.
	4444 Brittmoore Road
	Houston, Texas 77041
	NYSE: UCO

Contact:

David Oatman

Vice President, Investor Relations

713-335-7460

FOR IMMEDIATE RELEASE

TUESDAY, MAY 24, 2005

UNIVERSAL COMPRESSION REPORTS

FISCAL 2005 FOURTH QUARTER AND FULL YEAR RESULTS

RECORD ANNUAL REVENUE AND EBITDA, AS ADJUSTED

Houston, May 24, 2005 — Universal Compression Holdings, Inc. (NYSE: UCO), a leading provider of natural gas compression services, today reported a fiscal 2005 fourth quarter net loss of $4.5 million, or $0.14 per diluted share, including charges of $26.1 million on a pretax basis, or $0.53 per diluted share on an after-tax basis, related to debt extinguishment costs and $3.1 million on a pretax basis or $0.06 per diluted share on an after-tax basis related to an asset impairment expense on a former fabrication facility. Excluding these items, net income was $14.8 million, or $0.45 per diluted share.

The Company reported net income of $14.1 million, or $0.44 per diluted share, in the fiscal 2005 third quarter and $11.7 million, or $0.37 per diluted share, in the fiscal 2004 fourth quarter. The fiscal 2004 fourth quarter results included a charge of $0.5 million on a pretax basis, or $0.01 per diluted share on an after-tax basis, related to debt extinguishment costs. Excluding this item, fiscal 2004 fourth quarter net income was $12.0 million, or $0.38 per diluted share.

Revenue was a record $193.6 million in the fiscal 2005 fourth quarter compared to $192.7 million in the fiscal 2005 third quarter and $190.7 million in the fiscal 2004 fourth quarter. EBITDA, as adjusted (as defined below), was $56.9 million in the fiscal 2005 fourth quarter compared to $61.0 million in the fiscal 2005 third quarter and $58.0 million in the fiscal 2004 fourth quarter. EBITDA, as adjusted, for the recently completed fourth quarter included the $3.1 million fabrication facility impairment charge.

For the year ended March 31, 2005, net income was $33.6 million, or $1.04 per diluted share, including charges of $29.6 million on a pretax basis, or $0.61 per diluted share on an after-tax basis, related to debt extinguishment and asset impairment costs and a gain of $3.2 million on a pretax basis, or $0.07 per diluted share on an after-tax basis, related to the termination of interest rate swaps. Excluding these items, the Company had record net income of $51.1 million, or $1.59 per diluted share, in fiscal 2005. For the year ended March 31, 2004, net income was $30.8 million, or $0.98 per diluted share, including charges of $16.7 million on a pretax basis, or $0.34 per diluted share on an after-tax basis, related to debt extinguishment and

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facility consolidation costs. Excluding these items, net income was $41.3 million, or $1.32 per diluted share, in fiscal 2004.

In fiscal 2005, revenues were $763.1 million and EBITDA, as adjusted, was $232.5 million, both records for the Company. EBITDA, as adjusted, included the $3.1 million fabrication facility impairment charge. Revenues were $688.8 million and EBITDA was $223.8 million in the prior year.

“We are pleased with our improved financial performance in fiscal 2005, which included an 11% increase in revenue and a 20% increase in earnings per share before debt extinguishment, asset impairment and facility consolidation costs, and gain on termination of interest rate swaps compared to the prior fiscal year. We improved the utilization of our existing asset base while enhancing our overall market position by selectively expanding our contract compression fleet and extending our sales and service infrastructure abroad,” said Stephen A. Snider, Universal’s President and Chief Executive Officer. “We have a positive outlook for fiscal 2006 due to continuing strong market conditions in the United States and international markets and the continued implementation of our focused business strategy.”

“In the fourth fiscal quarter we significantly lowered our ongoing interest expense and extended debt maturities by redeeming the outstanding $440 million of 8.875% senior notes with funding provided by our new credit facility,” added Michael Anderson, Universal’s Chief Financial Officer. “We have a strong financial position and are well positioned to pursue attractive growth opportunities in our fiscal 2006 capital expenditure program, which is expected to be funded from internally generated sources.”

GUIDANCE

For the three months ending June 30, 2005, the Company expects revenues to be $190 million to $200 million and earnings per diluted share to be $0.48 to $0.52. For the twelve months ending March 31, 2006, the Company expects revenues of $775 million to $800 million and earnings per diluted share of $2.05 to $2.20. Capital expenditures, net of sale proceeds, are expected to be $125 million to $140 million in fiscal 2006, representing a modest increase over fiscal 2005 spending.

Conference Call

Universal will host a conference call today, May 24, 2005 at 10:00 am Central Time, 11:00 am Eastern Time, to discuss the quarter’s results and other corporate matters. The conference call will be broadcast live over the Internet to provide interested persons the opportunity to listen. The call will also be archived for approximately 90 days to provide an opportunity to those unable to listen to the live broadcast. Both the live broadcast and replay of the archived version are free of charge to the user.

Persons wishing to listen to the conference call live may do so by logging onto http://www.universalcompression.com (click “Investor Home” in the “Investor Relations” section) or

http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=121184&eventID=1064010 at least 15 minutes prior to the start of the call. The replay of the call will be available at the website www.universalcompression.com.

EBITDA, as adjusted, is defined as net income plus income taxes, interest expense (including debt extinguishment costs and excluding gain on termination of interest rate swaps), operating lease expense, depreciation and amortization, foreign currency gains or losses, excluding non-recurring items (including facility consolidation costs), and extraordinary gains or losses.

Universal Compression, headquartered in Houston, Texas, is a leading natural gas compression services company, providing a full range of contract compression, sales, operations, maintenance and fabrication services to the domestic and international natural gas industry.

Statements about Universal’s outlook and all other statements in this release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside Universal’s control, which could cause actual results to differ materially from such statements. While Universal believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the demand for Universal’s products and services and worldwide economic and political conditions. These and other risk factors are discussed in Universal’s filings with the Securities and Exchange Commission, copies of which are available to the public. Universal expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events, or otherwise.

UNIVERSAL COMPRESSION HOLDINGS, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

	Three Months Ended								Twelve Months Ended
	March 31,			December 31,			March 31,		March 31,
	2005			2004			2004		2005			2004
Revenues:
Domestic contract compression	$	76,918		$	75,170		$	70,968	$	296,239		$	280,951
International contract compression	28,739			27,810			21,397		102,167			82,589
Fabrication	48,037			50,823			62,655		213,994			183,685
Aftermarket services	39,942			38,873			35,690		150,670			141,561
Total revenue	193,636			192,676			190,710		763,070			688,786

Costs and expenses:
Domestic contract compression - direct costs	29,240			27,071			25,746		109,374			102,408
International contract compression - direct costs	6,967			6,427			4,440		23,719			18,430
Fabrication - direct costs	44,996			48,605			56,148		198,709			167,797
Aftermarket services - direct costs	33,281			30,917			27,588		121,014			110,670
Depreciation and amortization	24,390			23,611			22,246		93,797			85,650
Selling, general and administrative	20,072			19,224			18,165		75,756			67,516
Interest expense	14,396			16,821			17,599		64,188			73,475
Foreign currency (gain) loss	103			(238		)	102		389			(529		)
Other (income) expense	(897		)	(589		)	642		(1,125		)	(1,883		)
Debt extinguishment costs	26,068			—			505		26,543			14,903
Facility consolidation costs	—			—			—		—			1,821
Gain on termination of interest rate swaps	—			—			—		(3,197		)	—
Asset impairment costs	3,080			—			—		3,080			—
Total costs and expenses	201,696			171,849			173,181		712,247			640,258

Income (loss) before income taxes	(8,060		)	20,827			17,529		50,823			48,528

Income tax expense (benefit)	(3,570		)	6,702			5,804		17,213			17,741

Net income (loss)	$	(4,490	)	$	14,125		$	11,725	$	33,610		$	30,787

Weighted average common and common equivalent shares outstanding:
Basic	31,580			31,406			30,998		31,392			30,848

Diluted	31,580			32,082			31,769		32,224			31,283

Earnings per share:
Basic	$	(0.14	)	$	0.45		$	0.38	$	1.07		$	1.00

Diluted	$	(0.14	)	$	0.44		$	0.37	$	1.04		$	0.98

UNIVERSAL COMPRESSION HOLDINGS, INC.

UNAUDITED SUPPLEMENTAL INFORMATION

(In thousands)

	Three Months Ended									Twelve Months Ended
	March 31,			December 31,			March 31,			March 31,
	2005			2004			2004			2005			2004
Revenues:
Domestic contract compression	$	76,918		$	75,170		$	70,968		$	296,239		$	280,951
International contract compression	28,739			27,810			21,397			102,167			82,589
Fabrication	48,037			50,823			62,655			213,994			183,685
Aftermarket services	39,942			38,873			35,690			150,670			141,561
Total	$	193,636		$	192,676		$	190,710		$	763,070		$	688,786

Gross Profit:
Domestic contract compression	$	47,678		$	48,099		$	45,222		$	186,865		$	178,543
International contract compression	21,772			21,383			16,957			78,448			64,159
Fabrication	3,041			2,218			6,507			15,285			15,888
Aftermarket services	6,661			7,956			8,102			29,656			30,891
Total	$	79,152		$	79,656		$	76,788		$	310,254		$	289,481

Selling, General and Administrative	$	20,072		$	19,224		$	18,165		$	75,756		$	67,516
% of Revenue	10		%	10		%	10		%	10		%	10		%

EBITDA, as adjusted (1)	$	56,897		$	61,021		$	57,981		$	232,543		$	223,848
% of Revenue	29		%	32		%	30		%	30		%	32		%

Capital Expenditures	$	38,284		$	45,797		$	18,105		$	143,665		$	86,557
Proceeds from Sale of PP&E	6,003			13,408			8,133			24,070			40,468
Net Capital Expenditures	$	32,281		$	32,389		$	9,972		$	119,595		$	46,089

Profit Margin:
Domestic contract compression	62		%	64		%	64		%	63		%	64		%
International contract compression	76		%	77		%	79		%	77		%	78		%
Fabrication	6		%	4		%	10		%	7		%	9		%
Aftermarket services	17		%	20		%	23		%	20		%	22		%
Total	41		%	41		%	40		%	41		%	42		%

Reconciliation of GAAP to Non-GAAP Financial Information:
Net income (loss)	$	(4,490	)	$	14,125		$	11,725		$	33,610		$	30,787
Income tax expense (benefit)	(3,570		)	6,702			5,804			17,213			17,741
Depreciation and amortization	24,390			23,611			22,246			93,797			85,650
Interest expense	14,396			16,821			17,599			64,188			73,475
Foreign currency (gain) loss	103			(238		)	102			389			(529		)
Facility consolidation costs	—			—			—			—			1,821
Debt extinguishment costs	26,068			—			505			26,543			14,903
Gain on termination of interest rate swap	—			—			—			(3,197		)	—
EBITDA, as adjusted (1)	$	56,897		$	61,021		$	57,981		$	232,543		$	223,848

	March 31,			December 31,			March 31,
	2005			2004			2004

Debt	$	858,096		$	847,057		$	884,442
Shareholders' Equity	$	861,672		$	856,334		$	799,235
Total Debt to Capitalization	49.9		%	49.7		%	52.5		%

(1) Management believes disclosure of EBITDA, as adjusted, a non-GAAP measure, provides useful information to investors because, when viewed with our GAAP results and accompanying reconciliations, it provides a more complete understanding of our performance than GAAP results alone. Management uses EBITDA, as adjusted, as a supplemental measure to review current period operating performance, a comparability measure, a performance measure for period to period comparisons and a valuation measure.

UNIVERSAL COMPRESSION HOLDINGS, INC.

UNAUDITED SUPPLEMENTAL INFORMATION

(Horsepower in thousands)

	Three Months Ended									Twelve Months Ended
	March 31,			December 31,			March 31,			March 31,
	2005			2004			2004			2005			2004
Total Horsepower Available (at period end):
Domestic contract compression	1,925			1,908			1,904			1,925			1,904
International contract compression	544			518			417			544			417
Total	2,469			2,426			2,321			2,469			2,321

Average Contracted Horsepower:
Domestic contract compression	1,717			1,696			1,630			1,675			1,646
International contract compression	484			442			372			430			360
Total	2,201			2,138			2,002			2,105			2,006

Horsepower Utilization:
Spot (at period end)	90.4		%	89.9		%	86.1		%	90.4		%	86.1		%
Average	90.0		%	89.8		%	86.4		%	88.8		%	85.8		%

Fabrication Backlog (in millions)	$	69		$	83		$	88		$	69		$	88

EXHIBIT 99.1

Houston, Texas 77041

FOR IMMEDIATE RELEASE

TUESDAY, MAY 24, 2005

UNIVERSAL COMPRESSION REPORTS

FISCAL 2005 FOURTH QUARTER AND FULL YEAR RESULTS

Conference Call

UNIVERSAL COMPRESSION INC 8-K