MV Setia Mega Crew Evacuates Safely

Alam Maritim Resources Berhad announced that one of its vessels had an accident on November 29, 2007.

The incident happened in the vicinity of Resak Platform while MV Setia Mega was sailing from Kemaman Supply Base to Dulang B Oilfield. The vessel had taken in a large quantity of water during an adverse weather condition and was fully submerged. The extent of the damage is still being assessed.

There was no casualty reported, and all the 14 crew members were evacuated and rescued by a nearby vessel.

MV Setia Mega is a 3,200 BHP Anchor Handling Tug Supply vessel owned by Alam Maritim Inc, a wholly owned subsidiary of AMRB. MV Setia Mega has been on a time charter contract supporting Petronas Carigali Sdn Bhd's domestic operations. The contract is for a period of seven years with an option for another three years at a contract sum of approximately RM48.62 million.

The vessel is currently suspended from operations until it is salvaged.

The company has sent an investigation and response team to the site to assess and contain any detrimental effects to the surrounding area. The Alam Maritim Resources Berhad remains committed to the client and has taken steps to arrange for a replacement vessel for the contract with PCSB.

Even though the incident poses no danger to the local community or to the environment, the company will closely monitor the situation and its potential impact.

The incident will not materially affect the earnings capacity of AMRB for the financial year ending December 31, 2007. The Board of Directors is confident that the incident will not adversely impact the business of the Group as the vessel is fully insured.