CANCELLATIONS AND VARIATIONS OF SHIP BUILDING CONTRACTS

3 December 2008

The Board of Directors of COSCO Corporation (Singapore) Limited (the “Company”) wishes to announce that its subsidiary, COSCO (Dalian) Shipyard Co., Ltd. (“COSCO Dalian”) (being a subsidiary of the Company’s 51% owned subsidiary, COSCO Shipyard Group Co., Ltd) has entered into an agreement (the “Variation Agreement”) in relation to the ship building contracts for 5 units of bulk carrier vessels of 57,000 DWT each entered into by COSCO Dalian that were announced by the Company on 11 July 2007 (the “Ship Building Contracts”).

The cancellations and variations have been made after negotiations with the shipowner. It had informed COSCO Dalian that its request for the cancellations and variations was made in view of the prevailing unfavourable market conditions.

Under the Variation Agreement, the orders for 2 of the vessels will be cancelled. The cancellations are conditional upon the payment by the shipowner of 80% of the total contract price of the remaining 3 vessels by December 2008, which is earlier than originally agreed under the Ship Building Contracts. The last installment amounting to 20% of the contract price will be paid in accordance with the original schedule.

Additionally, the shipowner has agreed to compensate COSCO Dalian for all expenses incurred in respect of the 2 cancelled orders for which construction has not commenced. The parties have also agreed under the Variation Agreement that the date of delivery of the third of the remaining vessels shall be postponed to 30 June 2010 instead of December 2009.

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 ending 31 December 2008.

Cosco Corporation (Singapore) Limited