VT Halter Marine Signs Phase II of Egyptian Fast Missile Craft Project

Released on Monday, September 29, 2008

Singapore, 29 September 2008 - Singapore Technologies Engineering Ltd (ST Engineering) today announced that its US shipyard VT Halter Marine Inc (VT Halter Marine), has secured a contract worth US$393m (about S$558m) with the US Navy for the Phase II of the Egyptian Navy's Fast Missile Craft (FMC) project. In addition, a further US$13.5m (about S$19m) was added to Phase I as a result of changes to work scope. This contract to build three FMCs and the additional Phase I award bring the total contract value for this project (Project) to approximately US$642m (about S$910m).

Work on Phase II commences immediately and delivery of the first FMC is expected by mid 2012. VT Halter Marine is the US operations of ST Engineering's marine arm, Singapore Technologies Marine Ltd (ST Marine).

This contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.

ST Engineering announced on 1 December 2005 that it had secured the initial Phase I functional design contract for approximately US$29m. Two subsequent contract modifications were awarded in November 2006 and June 2007 respectively for procuring the Project's long lead items which added US$206.5m to the contract. Subsequent changes in the scope of work further increased the Phase I contract value to the current US$249.2m. With the award of Phase II of the Project, the total contract value awarded to ST Engineering for the three FMCs amounts to US$642m.

The Fast Missile Craft is designed to perform coastal patrol, surveillance, interdiction, surface strike and naval battle group support for the 21st century. These vessels will allow the Republic of Egypt to maintain the security of its coastal regions for both itself and friendly countries, while denying access to the areas by any future adversaries. Each vessel will be approximately 62m in length and will incorporate ship signature control technology. High speed and manoeuvrability are two of the ship's primary assets to fulfil these roles. The vessels will also incorporate numerous combat system assets and electronic sensors that give them capabilities in anti-aircraft, anti-surface and electronic warfare.