Swiber Expands Support Vessel Fleet

Swiber Engineering Limited has acquired two vessels each from Pacific Crest Pte Ltd and Pacific Ocean Engineering & Trading Pte Ltd valued at a total of US $70.6 million, excluding certain owner furnished equipment.

The vessels include one 400' submersible barge and three accommodation barges. The accommodation barges can house approximately 300 men each. The submersible barge is scheduled to be delivered during the fourth quarter of 2007. The accommodation barges are scheduled to be delivered during the second quarter and four quarter of 2008 and the first quarter of 2009.

The acquisition of the vessels will be financed through the proceeds raised from the successful completion of the Group's recent private placement of S$117.3 million (net proceeds) and sales & leasebacks .

"We are pleased to announce the acquisition of these vessels which represents one more giant step towards achieving new heights in the offshore energy and marine industries for Swiber," said Mr Raymond Goh, Executive Chairman and Chief Executive of Swiber. "Increasing our fleet of marine support and construction vessels is a significant component of our growth strategy. The offshore energy and marine sectors are thriving and we intend to accelerate the roll-out of our vessels to tap the growing demand for our EPCIC services."

To date, Swiber has seen a steady stream of activities for its marine and EPCIC businesses, driven by buoyant market conditions for the offshore oil and gas industry.

Reflecting robust growth momentum, Swiber, on 13 August 2007, reported an outstanding financial performance for its second quarter ended 30 June 2007, with net profits soaring 678% to a record US$6.3 million on the back of an impressive 232% growth in revenue to US$25.4 million.

The Group expects continued growth going forward, supported by an outstanding order book, including letters of intent, of US$218.7 million as at June 30, 2007.

To accommodate its phenomenal growth, Swiber has, since 31 December 2006, dramatically increased its fleet of vessels from 11 to 20 comprising nine tug boats, nine barges, one crane barge (Dalihao) and one jack up barge. In addition, 13 vessels, comprising 11 tugs, one submersible barge and one pipelay barge, are currently under construction/conversion. The four new vessels in this latest announcement will bring the Group's total number of vessels to 36 by first quarter of FY2009.