FPS Ocean Contemplates Bond Issue

With reference to the announcement made in November 2007, FPS Ocean is considering the issue of a three-year convertible bond in a private placement to Norwegian and international investors, in the total amount of NOK 175,000,000 and with a coupon of 9% p.a. and a conversion price of NOK 72 per share.

The proceeds will be used to finance the ongoing conversion of the Company's first FPSO "DeeP Producer 1" in Dubai and for general working capital. Following this financing, the "DeeP Producer 1" conversion project would be fully funded.

The Company has awarded a mandate to Pareto Securities AS as lead-manager and book-runner of the convertible bond issue and Fearnley Fonds ASA will act as selling agent. The potential transaction is subject to Board approval and Shareholder Meeting approval.