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February 4, 2002

Kvaerner and Aker join forces in shipbuilding
Kvaerner and Aker RGI Holding are establishing a jointly owned shipbuilding management company. The two groups have already stated that they intend to merge their shipbuilding operations. Meantime, both agree "that substantial synergies can be achieved and that the value of their respective operations will increase through the establishment of a joint management company." .

Together, the two groups own 12 shipyards in Europe, and one in the USA and Brazil. The yards have around 13,500 employees and combined revenues of some $2.2 billion.

The new management company--Aker Kvaerner Yards AS-- will be owned 50:50 by Kvaerner ASA and Aker RGI Holding ASA, and will become effective from February 15, 2002. It will coordinate operation of the yards and "work to identify and realize synergies."

The new company will have "a lean staff." Its costs will be divided between the yards. It will be headed by Leif A Langøy, currently CEO of Aker Yards, while Kvaerner's president & CEO, Helge Lund will be Chairman. Hans Petter Finne, currently head of Kvaerner's Shipbuilding business area "will continue to work for Kvaerner during a transition period, following which he will leave the group."

Together the Kvaerner and Aker shipbuilding operations will rank top among European shipyard groups in terms of revenue, and fourth in the world. The combined order backlog for the 14 yards currently comprises some 80 vessels with a total value of about $3.85 billion.

A statement from Kvaerner says that the combination of resources under a single management will open opportunities for effective utilization of capacity, and a long sought-after strengthening of the Group level management resources available to the Kvaerner yards. It is anticipated that synergies will emerge from crossover technology/knowledge sharing, strengthened market capability and reduced procurement costs.

The joint management of the shipyards will not affect their legal or financial structure of the shipyards. Kvaerner's Shipbuilding operations will continue to constitute a separate business area of the group.

Kvaerner and Aker say they expect that the most significant and immediate synergies can be identified between the German yards--Aker MTW and Kvaerner Warnow Werft. In order to realize these synergies quickly, the management company has been asked to present a proposal for a combination of the two yards to the parent companies, later this year.

The Kvaerner statement says that "immediate synergies" are anticipated at the Kvaerner Philadelphia Shipyard. "An exchange of skills, and further initiatives in connection with the current training program utilizing additional experienced personnel, will help to realise further improvements in the yard operations--thereby helping to secure enhanced value for shareholders."