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May 22, 2003

VT Halter Marine launches LSV SSGT Robert T. Kuroda

VT Halter Marine to start Deepwater work
Singapore Technologies Engineering (ST Engg) today announced that the U.S. Bankruptcy Court has approved VT Halter Marine Inc.'s agreement to acquire the 50% interest of Halter Marine Inc. in the Halter-Bollinger Joint Venture LLC (HBJV). VT Halter Marine is an indirect subsidiary of ST Engg.

The purpose of the HBJV joint venture is to secure sub-contracts for the U.S. Coast Guard Deepwater Program, the work of which will in turn, be sub-contracted to each of the shipyards, VT Halter Marine and Bollinger Shipyards Lockport LLC (Bollinger Shipyards).

VT Halter Marine plans to start its portion of the Deepwater project in July 2003 with the retrofit and upgrade of Island Class Cutters. The cutters will be lengthened to 123-feet and its Command, Control, Communications, Computers, Intelligence and Reconnaissance (C41SR) capabilities enhanced. VT Halter Marine will construct the superstructure shells for a total of 39 cutters. VT Halter Marine's portion of this contract is worth approximately $5 million over its anticipated contract life of 7 years.

LSV LAUNCH
Meantime, VT Halter Marine yesterday launched a Logistic Support Vessel (LSV) designed and built for the U.S. Army's Tank-automotive and Armament Command (TACOM).

The LSV-7 has an overall length of 313 feet, a beam of 60 feet and a molded depth of 19 feet. Designed and built to carry over 2000 tons of deck cargo, that could include combat vehicles or armament cargo, the vessel is capable of supporting logistical efforts worldwide

The vessel, christened the "SSGT Robert T. Kuroda," is named in honor of a WWII Japanese American hero of the 442nd Regimental Combat Team, the most decorated unit of its size and length of service in U.S. military history. Kuroda was killed in action on October 20, 1944 during a rescue operation of a battalion surrounded by German forces.

Butch King, CEO of VT Halter Marine said, "More than 50 vessels in the Army's fleet were built at our shipyards including Logistic Support Vessels, Large Tugs and LCU-2000 Class Landing Craft Utilities. VT Halter Marine is moving forward and gaining momentum in its quest to more fully utilize its experienced, dedicated workforce and facilities as its order book is filled. The VT Halter Marine team is committed to building world-class, technically advanced products. It is home to a growing group of skilled engineers and craftsmen who have first-hand experience in designing and building ships with military and commercial applications."

BG John Y. H. Ma, Commanding General, 9th Regional Support Command (9th RSC) and Pacific Army Reserve said, "The Kuroda significantly enhances the Army's capability to haul large quantities of cargo, equipment, and vehicles to its forces throughout the world and in the Pacific theater in particular. 9th RSC units located throughout the Pacific in American Samoa, Korea, Japan, Alaska, Saipan and in Hawaii will certainly benefit from the arrival of the Kuroda and the added capabilities the Kuroda will contribute to command readiness."

"As a former logistician, I am especially proud the U.S. Army feels confident in the design and quality that VT Halter Marine provides to their important logistic plan," said Gen. (Ret.) John G. Coburn, President and CEO of VT Halter marine's parent Vision Technologies Systems Inc. "With the changing and unstable political environment in the world, as demonstrated in the recent war with Iraq, it is our privilege to contribute adaptable and maneuverable ships to help facilitate our soldiers' efforts. The opportunity to design and build the LSV has given VT Halter Marine an inside understanding of the Army's logistic needs, which will translate well to other military applications such as the Theater Support Vessel."

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