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Marine Log

October 5, 2007

Aker American Shipping ASA to become two companies?

According to a stock exchange announcement, the board of directors of Aker American Shipping ASA has decided to evaluate splitting the company into two stock-exchange-listed corporations - a ship-owning company and a shipbuilding yard - and thereby streamline operations.

Aker American Shipping`s activities comprise American Shipping Corporation, which is a fleet owner for ships built at the Philadelphia yard, and the Aker Philadelphia Shipyard.

The announcement says that "both the shipowning business and the shipyard have captured strong positions in robust and promising U.S. markets."

It says that "a streamlining of Aker American Shipping into two independent, stock-exchange-listed companies--the shipowner American Shipping Corporation and the shipbuilder Aker Philadelphia Shipyard--may be viewed as a natural and value-adding step in the development of the two businesses."

The board of directors aims to conclude its assessment of the matter in the fourth quarter of 2007. If the board recommends splitting Aker American Shipping, the action would be contingent upon approval by, among others, authorities and agencies in Philadelphia and the State of Pennsylvania and lenders.

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