AGR to Sell AGR Project Partner, Subsidiaries to Semco

The AGR Group has entered into a letter of intent to sell 100% of AGR Project Partner AS with subsidiaries for an enterprise value of NOK 85 million to Semco Maritime AS, the Stavanger subsidiary of the Semco Maritime Group in Denmark.

AGR Project Partner AS is a leading provider of Project Management and Engineering Services within the Crane replacement niche, providing services to the Norwegian Continental Shelf. The signing of a final sales and purchase agreement is expected to take place no later than October 10th 2008.

The sale will not include the activities in Alesund and Oslo, which will remain in AGR and operate as AGR Marine Engineering AS.

AGR Project Partner AS, employing a staff of 84, will be acquired by Semco Maritime AS. For more than 25 years, the Semco Maritime Group has been dedicated to providing the highest quality services and project solutions to the energy sector and is today a leading provider in this market.

The Semco Maritime Group is a single-source supplier of solutions from basic equipment to integrated systems for all operations within the following market sectors: Floating and mobile units, Fixed oil and gas installations and Infrastructure (Power plants and Telecommunication).

Semco Maritime’s priority is to create long-term relationships with customers in the global market as an outstanding supplier of complete solutions and innovative designs.

Erik Gaj Nielsen, President & CEO of Semco Maritime Group, said, "We have been looking for an opportunity to expand our presence and strengthen our growing business activities in Norway with an engineering company. With the acquisition of AGR Project Partner AS we will be able to enter into more EPCI projects and contracts in Norway. Depending on the nature and size of future projects Semco Maritime AS can now handle most of such contracts in Norway alone or in cooperation with our engineering and production facilities in Denmark."

Age Landro, Executive Vice President of AGR Field Operations, added, "We are pleased to have reached this agreement with Semco Maritime. With increased emphasis on a business model that focuses on products and services that support operations and with the continued focus on integration of services between our current regions, the Project Partner business did not really fit into the long-term business strategy of the AGR Field Operations. However, we have always recognized the strengths and achievements of the operation. We are very confident that Semco Maritime will allow AGR Project Partner AS to capitalize and further develop on its strong market position and high quality people."