14 Jan 2002

(1) Disposal Of Entire Interests In Associated Company, Neptune Associated Lines (2) Acquisition Of Additional Interest In Associated Company, Atlantis Shipyard Pte Ltd

As part of SembCorp Marine’s plans to divest its non core activities and to remain focused on its marine activities of ship repair, shipbuilding, ship conversion and offshore businesses, the Board of Directors of SembCorp Marine Ltd wishes to announce that:
1. The Company has disposed of its fifty per cent interest comprising 615,000 ordinary shares in Neptune Associated Lines (NAL) to Neptune Orient Lines (NOL). NAL is a ship owning and ship chartering company formerly jointly owned by SembCorp Marine and NOL. The consideration payable to SembCorp Marine was a nominal amount of S$1.00 based on NAL’s Net Tangible Assets value of S$1.00 as at December 30, 2001.

2. At the same time, the Company has acquired from NOL a 50 per cent equity stake in Atlantis Shipyard Pte Ltd (Atlantis), a mid-sized shipyard specializing in the repair of small and medium-sized vessels, including afloat and anchorage repairs and the construction of mid-sized vessels. The acquisition, comprising of 20 million ordinary shares was purchased at a consideration of S$11.0 million in cash based on Atlantis’ Net Tangible Assets value of S$22.0 million as at September 30, 2001. The consideration was funded from internal resources and on a willing buyer, willing seller basis. Upon completion of the acquisition, SembCorp Marine now holds an 85 per cent interest in Atlantis.

The above transactions are not expected to have a significant impact on the earnings per share and net tangible assets per share of SembCorp Marine for the financial year ending December 31, 2002.

None of the Directors has any interest, direct or indirect, in the above transaction. Other than Temasek Holdings’ substantial shareholdings in SembCorp Marine and NOL, the Directors are not aware of any substantial shareholders having any interest, direct or indirect, in the said transaction and have not received any notification of any interest in the transaction from any substantial shareholders. The transactions have been approved by SembCorp Marine’s Board of Directors and Audit Committee.

For media and investor enquiries, please contact:

Ms Judy Han
Vice President
Investor Relations & Communications
Tel : (65) 6262 7203
Fax : (65) 6261 0738
E-mail: judy@jspl.com.sg

Submitted by Lim Seh Li, Company Secretary on 14/01/2002 to the SGX