Aker Yards, Damen Finalize Agreement

August 4, 2006

Aker Yards and Damen Shipyards Group have finalized the process of establishing joint ownership of the Damen Shipyards Okean. The plans involve increasing the output capacity of the yard to 60,000 tons per year. The Okean yard will be able to build a variety of large merchant vessels, as well as steel sections for all the three business areas of Aker Yards. The construction of the Damen portfolio including the series of cargo vessels for the Ukrainian owners will be continued. Aker Yards will manage the yard, and will in addition to the existing projects, primarily focus the group's production of merchant vessels. The operations will be consolidated into Aker Yards accounts as from the date of closing. Aker Yards has paid $12.8m in cash. Additional payments will depend on the future performance of the yard. Aker Yards will also assume or procure repayment of $14m of debt. The joint venture will initially have an order book of 11 vessels, to a value of $38.6m. The yard consists of two production lines, the largest one having a dry dock 354x60x14 m deep. The yard in Okean has approximately 3,000 employees.

Aker Yards, Damen Finalize Agreement

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