October 20, 2000

Manitowoc buys Marinette
The Manitowoc Company, Inc., has signed an agreement to purchase the stock of Marinette Marine Corporation.

Located in Marinette, Wisconsin, just across Green Bay from Manitowoc's Bay Shipbuilding facility, Marinette Marine operates one of the largest shipyards on the U.S. Great Lakes.

Marinette was acquired for approximately $48.0 million as part of an all-cash transaction, which is expected to close within 30 days pending regulatory approvals. It will be financed using Manitowoc's existing credit facility.

"Marinette Marine is one of the most efficient builders of mid-sized commercial, research, and military vessels in the country and will be a key strategic fit with the industry-leading inspection, maintenance, repair, and new-construction facilities that comprise Manitowoc Marine Group,'' stated Terry D. Growcock, Manitowoc's president and CEO. "Together, the combined organization forms a combination that will not only have a significant presence on the Great Lakes, but will be one of the most cost-effective shipbuilding and repair organizations in the entire United States".

"The acquisition ... should not only give us the leading position in building mid-sized vessels for the U.S. Government, it will enhance our ability to serve the Great Lakes ship repair market as well as providing the engineering strength, operational depth, and critical mass to pursue additional projects,'' declared Growcock.

A privately held corporation, Marinette has revenues of approximately $100 million with EBITDA margins approaching 10 percent. The company is currently under contract to build six ocean-going buoy tenders for the United States Coast Guard, as well as two 269-foot APL barracks barges for the U.S. Navy. Marinette Marine presently employs more than 800 individuals and features complete in-house capabilities for all shipbuilding disciplines.

"This acquisition is a great addition to our present operations,'' explained Tom Byrne, the recently appointed president and general manager of Manitowoc's Marine Group. "`Marinette's close proximity to our Sturgeon Bay yard should allow us to easily balance work across the two facilities. In addition, Marinette, which is well known for its highly efficient production line approach to shipbuilding, will enable us to serve a broader range of customers with the best array of facilities, capabilities, and expertise of any Great Lakes shipyard.''

The Manitowoc Company, Inc. is a leading manufacturer of ice-cube machines, ice/beverage dispensers, and commercial refrigeration equipment for the foodservice industry. It is also a leading producer of lattice-boom cranes, boom trucks, and related products for the construction industry, and specializes in ship repair, conversion, and new-construction services for the Great Lakes maritime industry.

Hvide yard starts construction of another landing craft
Sun State Marine Services, Inc., a subsidiary of Hvide Marine Inc. has begun construction on the second in a series of new U.S.-flag cargo ships at its shipyard facility in Green Cove Springs, Florida.

The 190-foot "landing craft'' type freight vessel is specially designed and ideally suited for conducting trade in areas that have minimal or unimproved shore facilities.

It will be equipped with a ramped bow for roll-on/roll-off cargo and more than 6,100 square feet of open cargo deck. Powered by two 720 horsepower Caterpillar 3412 DITA main diesel engines driving Twin Disc MG5202 reduction/reverse gears @ 4.59 reduction, the vessel will achieve a speed of 12 knots. To assist in maneuvering, the vessels will have a Wesmar 200 hp bow thruster. Ship's power will be supplied by two John Deere generator sets rated at 60 kW each.

Gerhard E. Kurz, president and CEO of HMI, noted, "The landing craft's unique and proven ability to safely utilize beaches or boat ramps provides customers with the right tool for practical and profitable operations in areas that were previously inaccessible.''

Sun State offers ship repair services in addition to new vessel construction, with a 1,000-ton marine railway and three dry docks that can handle vessels up to 1,000 tons.

SENESCO gets barge order from NNS
Southeast New England Shipbuilding Co. (SENESCO), Quonset Point, R.I., is to build three barges for Newport News Shipbuilding.

Newport News will use the barges to support shipbuilding and repair operations. Two will be 120 ft x 30 ft. The third will be 75 ft x 40 ft. The contract is scheduled for completion by March 2001.

Just under one year old, SENESCO has thus far delivered two barges from its 25 acre waterfront yard on Narragansett Bay. Five more are currently under construction. The yard, which has a labor force of 100, has also built a number of barge-like vessels that are used as floats in several New England marinas.

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