SCAN, PFS Nix Final Sale and Lease-Back Agreement for 3 Newbuilds

Reference is made to recent stock exchange notifications from SCAN regarding the signed Letter of Intent with PFS Shipping (Singapore) Pte. Ltd. (PFS) for sale and lease-back of three newbuilds and the following subscribed private placement of NOK 117.65 million subject to a final sale and lease-back agreement with PFS within December 12, 2008.

PFS and SCAN did not succeed in reaching a final sale and lease-back agreement within December 12, 2008, and hence the subscribed share issue was not completed.

SCAN has already invested substantial amounts in seismic equipment for the newbuilds and will seek to raise debt financing secured by this equipment.

SCAN has currently its three vessels in operation on good contracts for 3-8 months into 2009.