Marine Log

June 2, 2006

Aker Yards to take stake in Damen Ukraine yard

Aker Yards and Damen Shipyards Group are planning to establish a joint venture that will own the Damen Shipyards Okean yard in Mykolayiv, Ukraine.

Damen Shipyards Okean is located on a 120 acres site. and its facilities include a 350 m x 60 m graving dock.

The Okean yard is capable of building a variety of vessels and steel sections for all the three business areas of Aker Yards, as well as building the existing Damen range of vessels.

Karl Erik Kjelstad, CEO & President of Aker Yards says: "This planned cooperation meets Aker Yards strategy to increase its steel and shipbuilding capacity."

Rene H. Berkvens, CEO of Damen Shipyards Group says that the product range of Aker Yards matches very well with the capacities of the Okean yard and for that reason this is a very valuable cooperation.

Aker Yards will pay EUR 10 million cash at closing for its ownership share.

Further payments will be dependent on financial performance of the yard.

Other terms and outstanding conditions are to be settled before the transaction is closed. The transaction is subject to approval by relevant governmental authorities and settlement of other outstanding conditions.