Kvaerner Masa-Yards and Far-Eastern Shipping Company Confirm Contract

On September 5 Kvaerner Masa-Yards Inc. and Far-Eastern Shipping Company PLC (FESCO) signed shipbuilding contracts for the design and construction of two icebreaking stand-by and supply vessels, subject to approval by the Central Bank of Russia and to issues related to post-delivery financing. The second ship was to be confirmed by early November 2003. Kvaerner Masa-Yards Inc. and FESCO are pleased to confirm that the subjects have been lifted for one vessel. As the decision on a possible charter arrangement for an additional vessel has been moved forward, FESCO did not confirm the second vessel contract at this stage. The vessel is due for delivery in May 2005 and will be operating in the harsh Okhotsk Sea environment in the Sakhalin area in the Far-East of Russia. The vessel has a length over all of 100 metres and a deadweight of 4.000 dwt. The shaft power is 13 MW and the ship will be fitted with azimuthing electric propulsion. The vessel contract price is close to EUR 65 million.