Labroy Receives Order to Build Two Platforms

Labroy Marine Limited has won another offshore construction contract worth US$18.0m (S$28.4m) from a new customer, an established Dutch operator of jackup platforms. Labroy will fabricate the platforms and install jacking systems, legs, other machineries and equipment onto the two new units of jackup platforms using designs supplied by the customer. The jacking system, legs, machineries and equipment are to be supplied by the customer.

Mr. Tan Boy Tee, Chairman and Managing Director of Labroy commented, "This contract coming from an operator shows the growing confidence owners / operators have in Labroy's capabilities to undertake and deliver jackups. We are selected based on our merit of being able to deliver the jackup platforms within a short deadline."

The delivery of the two jackup platforms is scheduled for 2007. Labroy announced in March 2006 orders for two jackup rigs from Norwegian client, Standard Drilling ASA, which are scheduled to be delivered in 4Q2008 and 2Q2009.

Mr. Tan continues, "We are confident of more orders from the jackup segment."

Labroy's outstanding order book for building new vessels and oilrigs now stands at a record S$1.25 billion. This will keep its shipbuilding division busy until 2009. Shipbuilding contributed 54% to Group turnover in the first quarter of financial year 2006. The contract announced today is not expected to have any material effect on the earnings and net tangible assets of the Group for the current financial year.