The Board of Directors of Swiber Holdings Limited, and with its subsidiaries has entered into a Sale and Purchase Agreement on 03 August 2007 to acquire from Project Engineers (Pte) Limited all the issued ordinary shares in the capital of North Shipyard Pte Ltd ("North Shipyard", and such acquisition hereinafter called the "Acquisition").

North Shipyard was incorporated in Singapore on 15 August 1981, and has a share capital of S$3,434,427.00 consisting of 3,434,427 issued and fully paid-up ordinary shares. It is engaged in the business of building and repairing of ships, tankers and other ocean-going vessels. The Board of Directors are of the view that the Acquisition is in the interests of the Company, as North Shipyard will complement the current activities of the Company, as well as provide a marine base for the Company's fleet of vessels.

The consideration for the Acquisition is S$10.30 million subject to adjustment in the event that North Shipyard's provision for tax for the financial year ended 31 May 2007 is less than the tax payable by it as assessed by the tax authorities (the "Consideration"), and was arrived at on a "willing buyer, willing seller" basis between the parties after arm's length negotiations.

The Consideration is payable in cash by the Company in full on Completion and will be financed through the Company's internal resources. The unaudited net tangible assets ("NTA") value of North Shipyard as at 31 May 2007 was S$6.26 million.