Siem Offshore Acquires Well Intervention Solutions

Siem Offshore and Wellis AS have entered into a Share Purchase Agreement with respect to the shares in Wellis' wholly owned subsidiary, Well Intervention Solutions AS ("WIS"), whereby the Company shall have the right and obligation to become a 60% shareholder in WIS. The Board of Siem Offshore has resolved to issue 2,300,000 ordinary shares to Wellis AS in consideration for shares in WIS. Further, the Company will inject NOK 30 million in new share capital in WIS, of which NOK 15 million will be paid in May 2006 and NOK 15 million will be paid within January 2007.

WIS was founded by Mr. Per Espen Edvardsen and Mr. Tom Kjetil Askeland who have extensive experience in companies involved in the riserless oil service industry, including Transocean Inc., AGR Ability Group, Schlumberger, FMC Kongsberg Subsea and FMC Production Services.

WIS has developed a concept with the objective to enable safer and more efficient Riserless Subsea Intervention, Drilling and Maintenance services from vessels, especially beneficial for, but not limited to, deepwater interventions. The proceeds from the share issue in WIS will be used in order to prepare the riserless intervention concept for market entrance.