30 Dec 2002

SembCorp Marine unwinds cross-shareholdings in JPL Industries Pte Ltd

As part of SembCorp Marine’s (SCM) plans to unwind cross-shareholdings in the Group, the Board of Directors of SCM wishes to announce that:

1. SCM will dispose of its entire 24.9 per cent equity interest, comprising 3,000,000 issued and fully paid-up ordinary shares and 2,500,000 redeemable convertible loan stock in JPL Industries Pte Ltd (“JPLI”) to JPL Corporation Pte Ltd (“JPLC”), a 70 per cent subsidiary of SCM

2. At the same time, Jurong Clavon Pte Ltd (JC), a 50 per cent owned associated company of SCM will dispose of its entire 16.6 per cent equity interest, comprising 2,000,000 issued and fully paid-up ordinary shares in JPLI to JPLC

3. The consideration payable in cash to SCM and JC is S$6.60 million and S$2.40 million respectively based on a 20 per cent premium on the Net Tangible Assets (“NTA”) of S$1.00 per share of JPLI as at October 31, 2002

4. With the completion of the unwinding of cross-shareholdings, SCM’s deemed shareholdings in JPLI will be 53.8 per cent while JC will cease to be a shareholder of JPLI

JPLI is an environmental waste management company. Its primary activities include the collection, treatment, recycling and the processing and distribution of used copper slag for blast cleaning purposes. Used copper slag is the biggest single source of waste generated from shipyards in Singapore and posed environmental problem in land scarce Singapore. The company also pioneered the use of recycled copper slag as replacement of sand and aggregates in structural and non-structural building materials.

The unwinding of cross-shareholdings has no material impact on the earnings and NTA value per share of SCM. None of the Directors has any interest, direct or indirect, in this transaction.

For media & investor enquiries, please contact:

Judy Han (Ms)
Vice President
Investor Relations & Communications
Tel No : 6262 7203 Fax : 6261 0738
E-mail: judy@jspl.com.sg

Submitted by Ms Lim Seh Li, Company Secretary on 30/12/02 to the SGX