News

Update On ASL Energy Pte. Ltd.

Pursuant to the masnet announcements made on 18th August 2003, the Board of Directors of ASL Marine Holdings Ltd (the "Company" or "ASL Marine") are pleased to inform shareholders that its 50% owned associate company, ASL Energy Pte. Ltd. ("ASL Energy"), which commenced operations with 1 tug and barge in September 2003, is currently operating some 20 sets of tugs and barges. These tugs and barges are chartered from, or through, ASL Project Services Pte Ltd, a wholly owned subsidiary of the Company. These tugs and barges are fully utilised in transporting coal for PT Pelayaran Segara Niaga Utama ("PT PSNU") in Kalimantan, Indonesia.

As previously announced, ASL Energy placed orders with ASL Shipyard Pte Ltd, another wholly owned subsidiary of the Company, for 20 new barges. By the end of this month, December 2003, ASL Energy expects delivery of the first batch of such barges from ASL Shipyard Pte Ltd.

In view of the rapid, successful and profitable deployment of the tugs and barges fleet and the smooth operation of the coal carrying contract with PT PSNU, ASL Energy has decided to expand its fleet size beyond the 20 sets of tugs and barges originally planned by adding another 20 sets of tugs and barges. ASL Energy is also seriously exploring the possibility of providing other complementary and supporting logistics vessel infrastructure, one of which is a floating terminal for the purposes of storage of coal; unloading of coal from the barges and the loading of coal onto ocean-going vessels.

With ASL Energy proceeding with the expansion, and given the amount of resources ASL Energy will have to commit to the coal transportation business, the Directors believe that it may be prudent for ASL Energy to secure strategic stakes in other parts of the supply chain where it currently has no control over, thereby insuring against possible disruptions of future business. The Company is in the course of deciding whether to diversify into the sourcing and marketing of coal and is now at various stages of discussion with a possible view to an acquisition of various entities.

In the event that a decision is made and the Company does enter into any definitive agreement which may be material, the Company will promptly issue the necessary announcement.

Shareholders and investors should note that there is no assurance that a definitive or binding agreement can be reached and accordingly should exercise caution in all their dealings in shares of the Company.


BY ORDER OF THE BOARD


Ang Kok Tian
Managing Director

26th December 2003