News

Reduction Of Interest In 95% Owned Subsidiary, PT Capitol Shipping Nusantara ("PT CSN")

The Board of Directors of ASL Marine Holdings Ltd (the "Company" or "ASL Marine") is pleased to announce that it has entered into an Agreement with two Indonesian parties unrelated to ASL Marine, namely Mr Agus Sudimen and Mr H. Suta Wijaya to sell 35,000 ordinary shares of US$1 each in PT CSN or 35% of the registered and paid up share capital of PT CSN (the "Sale"), for a cash consideration of US$53,200 (approximately S$90,000).

Rationale for the Sale

The sale of shares to strategic partners is in line with ASL Marine's strategy of expanding its geographical coverage and strengthening its presence in regional markets that present opportunities in the marine infrastructure and offshore oil and gas sectors.

The strategic alliance reinforces ASL Marine's standing as a key regional player with integrated capabilities in shipchartering and shipbuilding in Indonesian offshore oil and gas markets.

PT CSN intends to acquire appropriate marine vessels from either subsidiaries of ASL Marine or appropriate third parties. PT CSN currently operates two hopper barges which were purchased from and built by ASL Shipyard Pte Ltd, a wholly owned subsidiary of ASL Marine. An offshore accommodation cum work barge has also been delivered to PT CSN in May 2004 and will be chartered out through our Indonesia business partners.

Information on PT CSN

PT CSN is a foreign equity company incorporated in Indonesia, with a registered and paid up share capital of US$100,000 that was established in July 2003. The principal activities of PT CSN are the provision of ship chartering and freight services.

Consideration and Completion

The consideration was arrived at on a willing-buyer and willing-seller basis, taking into account the net tangible assets of PT CSN. Approval from the relevant authorities in Indonesia has been received and the Company expects to gain approximately S$29,000 from the sale. After the transaction, ASL Marine's interest in PT CSN will be reduced to 60,000 shares, or 60% of the total registered and paid up share capital of PT CSN.

Financial effects to the Company

The net tangible assets and earnings per share of the Company for the financial year ending 30 June 2004 are not expected to be materially affected by the above transaction.

Interest of the Directors

To the best knowledge of the Directors of ASL Marine, none of the Directors or controlling shareholders of ASL Marine has any interest, direct or indirect, in the above transaction other than through their shareholdings in ASL Marine.

By Order of the Board



Ang Kok Tian
Chairman and Managing Director
25 June 2004