Davie yards Inc. assets acquired by Upper Lakes Group

Following the acquisition of assets belonging to Davie Yards Inc., Cecon signs an agreement with the newly formed Davie Canada to complete the construction of their three newbuild vessels at the yard.

Oslo, Norway, 22nd July 2011:
Following the acquisition of Davie Yards Inc.’s assets by Upper Lakes Group in association with SNC-Lavalin and Daewoo, Cecon ASA (the ‘Company’) (OSLO:CECON) today announced the signing of an Amending Letter Agreement (‘the Agreement’) with Davie Canada Inc.

The Agreement regulates the assignment of the Company’s existing shipbuilding contracts to Davie Canada Inc., and sets forth the necessary amendments to the three shipbuilding contracts with regards to completion cost and timing; to be within acceptable terms. Final amendments are expected to be concluded during Q3 2011.

The acquisition of the yard by Upper Lakes Group in association with SNC-Lavalin and Daewoo enables Davie Canada Inc. to enter the National Shipbuilding Procurement Strategy of Canada, thereby securing long-term activity within the shipyard.

For further information, please contact:
Riulf Rustad, Chairman
Cecon ASA
+47 9008 7703