Samsung Taps Velosi Group to Assemble, Install at Least 20 Derricks

Velosi, provider of asset integrity and HSE services to a number of major national and multinational oil and gas companies, announced that its 65% owned subsidiary, K2 International Limited, has been awarded a three year contract with Samsung Heavy Industries Co Ltd ("SHI"). The contract is estimated to be worth in excess of US $20 million over three years.

SHI is one of the world's leading shipbuilders, constructing vessels with leading-edge technology including drill ships, ultra-large container ships, LNG cariers and FPSOs.

Under the SHI contract, Velosi will provide specialist services for the assembly and installation of at least 20 derricks. The project will require highly trained rope access derrick builders to work on steel erection, the installation of electrical, mechanical and hydraulic equipment, and structural surveying and alignment as required. The contract commenced at SHI's shipyard on Geoje Island, South Korea, on March 13, 2009.

K2, which Velosi acquired in October 2007, provides a range of Inspection, Testing, Integrity Management and Engineering services to the Oil & Gas industry throughout Asia and Australasia, the Middle East and Central Asia. The acquisition increased Velosi's presence in these regions, in addition to expanding Velosi's expertise in rope access services; K2's Rope Access Training School is one of the largest in the world.

Commenting on this contract win Dr. Nabil Abdul Jalil, CEO of Velosi said, "K2 has been an extremely valuable addition to the Group, and we have seen strong demand for its specialist skills, in particular, due to the cost savings delivered by its rope access expertise as compared with traditional scaffolding techniques. This contract together with our current order book continues to underpin our confidence of a positive outcome for the current year."