Information package August 2006 Schat-Harding The

Information package – August 2006

Schat-Harding The world’s largest manufacturer of maritime life saving systems/lifeboats, davits and winches • • • Dates back to 1928, when Schat Davits patented the first skates to launch a lifeboat from a listing ship. Since then developed to be the worlds largest manufacturer of maritime life saving systems/lifeboats, davits and winches Unique installed base – • • More than 10, 000 ships and oil rigs relay on Schat-Harding for emergency evacuation This family of trusted brands has made Schat-Harding the first supplier to offer fully integrated packages of lifeboats, davits, hooks, winches, cruise tenders, and rescue boats, backed up by global service and after-sales Hundred of years of accumulated experience in maritime safety schat-harding 30. 8. 01 pkt. 1 Page 1

Schat-Harding Geograpic presence America: 2 agents Asia: 22 agents Europe: 15 agents S. KOREA Norway Canada USA United Kingdom The Netherlands SPAIN S-H OFFICES: Germany Czech Republic JAPAN Osaka China GREECE PORTUGAL MEXICO SERVICE PARTNERS: GIBRALTA R Singapore UAE / BAHRAIN INDIA AUSTRALIA Perth Active 40 employees 372 employees 96 employees Melbourne Sydney

Schat-Harding Company structure Production Sales& Marketing After Sales & Service Rosendal UK UK Netherlands Germany US US US Qingdao Singapore Ølve Europe Americas Asia Pacific Slany

Schat-Harding Organizational Chart

Schat-Harding Legal Chart Umoe Schat-Harding AS Norway 100% Umoe Schat-Harding BV Netherlands Umoe Schat-Harding Boatbuilding Qingdao Co Ltd China Umoe Schat-Harding FE Singapore Umoe Schat-Harding Gmb. H Germany Umoe Schat-Harding Inc. US 100% Umoe Schat-Harding LTD UK 100% Umoe Schat-Harding s. r. o Ccech Republic

Schat-Harding Product range Schat-Harding has one of the most extensive product ranges in the industry, and is currently in process of developing new products and services that will provide further revenue growth opportunities for Schat-Harding

Schat-Harding Market segments Cruise Merchant Offshore After Sales Ø World leader. Ø Offers totally enclosed Ø Totally enclosed Ø Global leader in the Ø Delivers complete lifeboats and davits, conventional lifeboat systems and freefall lifeboats Ø Approximate market share*: 6 -7% lifeboats and davits for platforms, as well as freefall and conventional systems Ø Approximate market share*: 25% high-margin AS & S market Ø Estimated 3 x larger revenues than no. 2 in the market Ø USH has the largest and most extensive service network within its product niche systems, including Cruise Tenders and Partially Enclosed Lifeboats (PELB) Ø Approximate market share*: Ø Life boats: +50% Ø Davits: +40% *Source: Schat-Harding estimates

Schat-Harding Market drivers Cruise D R I V E R S Merchant Offshore After Sales • Newbuilding activity • Sailing fleet/offshore units in production • Demolition rate. High rate increases the newbuilding activity • The world economy • Economic development in America • Increased time for vacation • Focus on safety in the industry • Freight markets • Oil price • New safety and environmental regulations • Ageing fleet • Sailing vessels • Oil price with USH equip. • USD level • New safety and • Demand for rigs environmental • New investments regulations • New safety and • Ageing fleet environmental • Freight markets regulations • Oil price • Change of flag

Schat-Harding Extensive product and services range for the important after market Products installed on more than 10, 000 oil rigs and vessels should give strong after sales customer base for this business

Solas/IMO regulations • New regulation in IMO* to prevent accidents with LSA systems – New Amendments to Sola’s Chapt. III Adopted in MSC. 78 for training, servicing and maintenance of LSA – All inspections (ex. Weekly and monthly inspections), servicing and repairs should be conducted by the OEM*’s representative, or a person appropriately trained and certified by the OEM for the work to be done – Compulsory annual and five-yearly inspections, servicing and testing will require trained and authorised personnel by the OEM – Entered into force 1 st July 2006 New Solas/IMO regulations will increase demand strongly for OEM’s products and services *IMO: International Maritime Organisation. OEM: Original Equipment Manufacture

Schat-Harding Profit & Loss* *Consolidated, unaudited Umoe Schat-Harding Group figures. 2004 and 2005 figures are based on audited accounts for the respective Schat-Harding companies.

Schat-Harding Balance Sheet* Comments Schat-Harding balance sheet – will be refinanced after completion of acquisition, and debt to Umoe Industrier repaid (NOK 39 million) Schat-Harding has no undrawn committed or uncommitted credit facilities from any financial institutions Bank guaranties of approximately NOK 63. 5 million outstanding as per 30. 06 *Consolidated, unaudited Umoe Schat-Harding Group figures. 2004 and 2005 figures are based on audited accounts for the respective Schat-Harding companies.

Schat-Harding Strong order backlog (excluding options*) *Options related to existing orders sums up to approximately 14 million euro. Contracts will become effective if end customers exercises its options with the yards.

www. schat-harding. com Address: Head Office: Seimsfoss 5450, Rosendal, Norway. Org. number: Umoe Schat-Harding AS: 937989202: