Alam Maritim Acquires 2 AHTS Vessels

Alam Maritim Resources Berhad's subsidiary, Alam Maritim (M) Sdn. Bhd. has signed two agreements with Pacific Crest Pte. Ltd. and one agreement with Prime Offshore International for acquisition of three new vessels for a total purchase consideration of US $40,800,000.

The two vessels purchased from PCPL are of Anchor Handling Tug And Supply ("AHTS") type which are planned to be deployed in the operational waters of Malaysia, South East Asia and Middle East regions to support the anchor handling, towing and straight supply activities on time charter basis.

The agreement with POPL is for the purchase of one 76-Meter DP2 ROV Support And Maintenance Vessel which can be used not only for moderate water depth operational activities but also to support the deepwater and ultra-deepwater exploration, production and development activities in unrestricted waters, encompassing the following:

• Diving support operations;
• ROV support operations;
• Platform maintenance works;
• Hook-up and commissioning works;
• Construction and installation related works; and
• Pipeline repairs and maintenance works.

All the three new vessels will be registered under Malaysian Flag.

The acquisitions are expected to be completed upon delivery of each and individual vessels which are currently under construction. The two AHTSs are expected to be ready for delivery in April and October 2007 while the new DP2 Vessel is expected to be delivered and commissioned before end of next year or early 2008.

The acquisitions are in line with the fleet expansion plan of the Group's core business in providing marine support services to the offshore oil and gas facilities, and as a platform to spur growth in turnkey Sub-sea Services/Works business segment to complement and add value to the existing core activities.

The acquisitions of the three vessels will be part financed by proceeds from the listing exercise and borrowings from financial institutions with staggered payment structure. These new vessels are expected to contribute positively to the future earnings and net tangible assets of the Company commencing from the financial year ending 31 December 2007.