22 Nov 2002

Acquisition of Additional Interest in PT Karimun Sembawang Shipyard

The Board of Directors of SembCorp Marine Ltd (“SembCorp Marine”) wishes to announce that its subsidiary, Karimun Shiprepair & Engineering Pte Ltd (“KSE”) has acquired the remaining 35 per cent equity stake in PT Karimun Sembawang Shipyard (“PTKSS”) from PT Primabahtera Indoshipyard (“PTPI”). The acquisition, comprising 6,300,000 ordinary shares of US$1.00 each was purchased at a cash consideration of US$110.00 (Rp. 1,000,000) based on a willing buyer, willing seller basis and based on the net tangible asset (“NTA”) of PTKSS at a negative value of equivalent US$0.15 per share as at October 31, 2002. With the completion of the acquisition, PTKSS becomes a wholly owned subsidiary of KSE.

The acquisition is part of SembCorp Marine’s plans to remain focused on its core marine activities of ship repair, newbuilding, ship conversion and offshore engineering. PTKSS is a shipyard located along the Straits of Malacca on Karimun Island, Indonesia. Its main activities include ship repairs and conversions, fabrication and piping works and de-sludging and de-sloping of tankers. The acquisition will enable SembCorp Marine to integrate and restructure PTKSS to increase operational efficiencies.
The acquisition has no material impact on the earnings and NTA per share of SembCorp Marine. None of the Directors has any interest, direct or indirect, in this transaction.

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 Ms Lim Seh Li, Company Secretary on 22/11/02 to the SGX