Prolongation of CCAA at Davie Yards Inc. until 10 March 2011.

Davie Yards obtains a new extension of CCAA stay order.

LEVIS, QUEBEC -- 02/17/11 --

Davie Yards ("Davie" or the "Corporation") announced today that it has obtained an order from the Quebec Superior Court (the "Court") extending the stay of proceedings ordered by the Court to March 10, 2011, the whole pursuant to the Companies" Creditors Arrangement Act ("CCAA").

Davie still requires additional clarifications in respect of the proposals it received from four potential investor groups prior to moving forward on an exclusive basis with one of them. The new extension will also allow Davie to continue working on a response to the request for proposal to become one of the two selected shipyards under the National Shipbuilding Procurement Strategy ("NSPS"), and to develop and eventually submit a plan of arrangement to its creditors under CCAA.