Modec Buys FMC Technologies Floating Systems

MODEC Inc.'s subsidiary company, MODEC (USA), Inc., has agreed to purchase FMC Technologies Floating Systems Inc. from FMC Technologies Inc. for $54.4 million. FMC Technologies Floating Systems Inc., among other things, develops and manufactures SOFEC turrets and mooring systems for Floating Production Storage and Offloading vessels (FPSOs), Floating Storage and Offloading vessels (FSOs) and offshore marine loading systems. MODEC Inc. indicated the transaction is expected to close by December 31, 2006.

This acquisition allows MODEC to strengthen its competitiveness in the FPSO industry by fully incorporating SOFEC's patented turret and mooring technologies into MODEC's FPSO and FSO construction business. "We expect this strategic acquisition to allow us to better serve our customer's needs in the FPSO and FSO markets on a worldwide basis." MODEC's spokesperson said.

MODEC International LLC is a wholly owned subsidiary of MODEC, Inc. publicly traded on the Tokyo stock exchange (TSE: 6269). MODEC is a turnkey service supplier of Floating Production, Storage and Offloading (FPSO) vessels, Floating Storage and Offloading (FSO) vessels, Tension Leg Platforms (TLPs) and production semisubmersibles (CPSs) for the offshore oil and gas industry. MODEC currently has 1 FPSO and 2 FSOs under construction which will add to its operating fleet of 10 floating production units around the world.