Velosi Bags Service Contracts in Europe and Middle East

Following Velosi's acquisition of a 60% stake in October 2008, PSC Italy has entered into an agreement with Saipem to provide inspection and expediting services. In addition, Velosi's Qatari operation has won two new contracts with RasGas and Dolphin Energy.

Saipem, a subsidiary of the leading Italian oil and gas company ENI, has entered into an agreement with PSC Italy to provide inspection and expediting services in China, India, Korea, Europe, and America. The agreement, effective from 1 October 2008, is for a period of 3 years and is worth an estimated Euro20 million. Saipem is one of the world's largest contractors in the oil and gas industry, employing over 30,000 people worldwide.

Velosi acquired a 60% stake in PSC Italy in October 2008 in order to expand its presence in Italy's growing oil and gas market. The agreement with Saipem demonstrates the value of the partnership created by PSC Italy's local expertise and capability in inspection services, combined with Velosi's broader international expertise.

Velosi's Qatar office, established in 1996, has been successful at retaining and expanding contracts with existing clients. RasGas, a key client for the Qatari operations, has awarded Velosi Qatar a new contract, worth US $12 million, for the provision of specialist inspection personnel. It is an exclusive three year contract and commenced in November 2008.

Velosi Qatar has also recently been awarded a three year contract by Dolphin Energy, a new client, following a competitive tendering process. Commencing from September 2008, Velosi is providing Quality Control inspection services, including vendor inspection services in Qatar and in surrounding countries. The contract can be extended for a further year.

Dr. Nabil Abdul Jalil, CEO of Velosi said, "These recent wins demonstrate Velosi's widening global reach, and the continued strong demand for our asset integrity and HSE services. Qatar has consistently been one of our most successful offices in the Middle East and globally, and these latest contract wins further demonstrate our success in the region.

"We are very pleased that our partnership with PSC Italy is proving successful so quickly, as evidenced by the award of such a substantial and wide reaching contract. This serves to demonstrate the benefits of our strategy of combining the skills and contacts of a local player with Velosi's broader range of services and international presence."