Cancellations And Variations Of Ship Building Contracts

Jan 09, 2009

The Board of Directors of COSCO Corporation (Singapore) Limited (the “Company”) wishes to announce that its subsidiary, COSCO (Zhoushan) Shipyard Co., Ltd. (“COSCO Zhoushan”) (being a subsidiary of the Company’s 51% owned subsidiary, COSCO Shipyard Group Co., Ltd) has entered into an agreement with an Asian shipowner, effective on 31 December 2008 (the “Variation Agreement”) in relation to the ship building contracts for 4 units of bulk carrier vessels of 57,000 DWT each entered into by COSCO Zhoushan that were announced by the Company on 8 June and 24 October 2007 (the “Ship Building Contracts”).

The cancellations and variations have been made after negotiations with the shipowner. Under the Variation Agreement, the orders for 2 of the vessels will be cancelled. Construction in respect of the 2 cancelled orders has not commenced. As part of the agreement to cancel the orders for the 2 vessels, the shipowner has paid compensation to COSCO Zhoushan.

The parties have also agreed under the Variation Agreement that the date of delivery of the two remaining vessels shall be postponed (i) from 15 February 2010 to 15 September 2010; and (ii) from 31 July 2010 to 17 January 2011 respectively.

The above cancellations and variations are not expected to have a significant impact on the net tangible assets (NTA) and earnings per share (EPS) of the Company for the year ended 31 December 2008.

For and on behalf of the Board
Jiang Li Jun
Vice Chairman / President
Date: 9 January 2009

Cosco Corporation (Singapore) Limited