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Austal Awarded Preliminary Design Contract for JHSV

Maritime Activity Reports, Inc.

February 1, 2008

The JHSV requirements and concept of operations are similar to those of the Austal built WestPac Express

Austal announced the award of a $3m Preliminary Design Contract for the Joint High Speed Vessel (JHSV) program for the US Navy and Army. The JHSV requirements and concept of operations are similar to those of the Austal built “WestPac Express”, which has been successfully serving the III Marine Expeditionary Force in Okinawa, Japan for more than six years. Executive Chairman, John Rothwell commented on the achievement, “As one of three companies down-selected for the Preliminary Design Contract, Austal has a strong chance of advancing to final selection given its large skilled workforce and world class facilities in Mobile, Alabama.” At the conclusion of the six-month JHSV Preliminary Design Contract, Austal will submit a proposal for the Detailed Design and Construction Contract. This contract will include the award of a construction contract for the first ship and options for a further seven ships set to be awarded between US FY09 and FY12. If successful, the JHSV program will be supported by the existing Austal labor force and facilities, and with the current facility expansion underway at Austal, will allow the construction of a combination of JHSV and LCS platforms concurrently. Austal USA CEO, Bob Browning said, "The JHSV design is right in the middle of the Austal breadth of experience. We are the only shipyard in the United States to have built a high-speed aluminum ship larger than 100 meters in length, and therefore feel justifiably confident that Austal is best placed to deliver a low risk JHSV platform to the US Army and Navy."

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