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FBM Babcock Wins U.S. Contract

Maritime Activity Reports, Inc.

August 10, 2004

The U.S. Army's Tank Automotive and Armaments Command (TACOM) awarded FBM Babcock Marine, a contract to commence the overhaul and modernization of its fleet of specialist Bridge Erection Boats (BEBs).

The contract to upgrade the existing U.S. Army BEBs of Mk1 and Mk2 specification to a new BEB-M22 specification will be managed by FBM Babcock Marine from Southampton in the UK, in conjunction with Silver Ships Inc. of Theodore, Ala.

The work to be performed under the modernization program will include condition assessments, structural and coating overhauls, replacement of obsolete equipment including new waterjets, marine diesel engines and control systems, and the development of a new Integrated Logistics Support (ILS) package. FBM Babcock Marine has selected AM General for the ILS contract which will include new technical manuals, parts breakdown books, operational manuals and training packages.

"This is an important contract for FBM Babcock Marine and furthers our 25 year relationship with the U.S. Army and it validates FBM's capabilities and quality in the ongoing support of our existing customers,” said John Warbey, managing director of FBM Babcock Marine. “This latest, and extremely important modernization program, is the result of our technical and contractual team, together with our consultants International Business Developments Inc (IBD), having spent many months working very closely with U.S. small business shipyards, major equipment manufacturers, ILS subcontractors and personnel in the U.S. Army and TACOM.

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