Yantai Raffles Shipyard Issues New Shares

Yantai Raffles Shipyard Limited has authorized the placement of 21,300,000 new ordinary shares (representing 7.8% of the enlarged share capital) of the Company at a price of NOK31.00 per share to realize gross proceeds of NOK660,300,000 (approximately US$124 million). The placement will result in the Company's share capital increasing to approximately S$591.6 million from S$417.6 million pre-placement. The placement is sponsored and managed by Fearnley Fonds ASA. The shares are being placed with qualified investors, with a tranche of 3,413,000 shares taken up by Directors. The shares will be traded on the Oslo OTC market upon delivery. Settlement is scheduled for November 13, 2007, with the shares expected to be traded immediately thereafter.