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August 26, 2002

McAlear leaves Kvaerner Philadelphia

Kvaerner Philadelphia Shipyard Inc. (KPSI) has announced a reorganization of the senior management at KPSI. Ron J. McAlear, president & CEO has resigned his position to pursue other opportunities.

Gunnar Skjelbred (age 53) currently Chief Operating Officer at the yard will take over the position of president & CEO. Skjelbred has long experience in international shipbuilding and has many years with Aker and Kvaerner in different top management positions.

McAlear joined the company in November 2000 and, says the KPSI announcement, has seen it through a very difficult transition period. When he joined the company it had 300 people and one ship having just started production. He was successful in developing the company to an employment level of over 900 employees of who are in training to have a career in shipbuilding. Additionally during the difficult transition period McAlear was successful in securing an order with Matson Navigation Company of San Francisco for the first two CV2600 containerships. Both ships are currently in production. McAlear was also instrumental in re-establishing positive relationships with the Philadelphia Shipyard Development Corporation and the authorities that oversee the Master Agreement under which Kvaerner operates the yard .

After having successfully completed this transition period, Kvaerner Philadelphia now moves into a new stage. One key priority going forward will be to improve work processes and productivity to ensure that the yard becomes even more competitive in the containership market.

Leif-Arne Langoy, Chairman of the Board of Kvaerner Philadelphia said, "We are very appreciative of the efforts that Ron has contributed during the difficult time for KPSI and we wish him well in his new endeavors. Gunnar and the team at KPSI will now continue to develop the yard into a world-class containership builder based on the foundation established under Ron's management."

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