ST Engineering's Marine Arm Secures S$30m Contract To
Design And Build A Seismic Survey Vessel

1 December 2008

Singapore, 1 December 2008 - Singapore Technologies Engineering Ltd (ST Engineering) today announced that its marine arm, Singapore Technologies Marine Ltd (ST Marine), has secured a S$30m contract to provide detailed design, construction and outfitting of a 68-metre seismic survey vessel for Swire Pacific Offshore Operations (Pte) Ltd (SPO), a wholly-owned subsidiary of Swire Pacific Limited. SPO had done extensive planning for this new build and will be providing the vessel's basic design and major equipment, including the seismic survey equipment. Construction is expected to commence in May 2009 and delivery is planned for 2H2010.

This contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.

This 68m by 15m seismic survey vessel, with medium speed diesel propulsion of 2 x 2880KW, will be designed, constructed, completed and delivered in compliance with the rules, regulations and with all requirements of and under the survey of American Bureau of Shipping, and shall be distinguished in the registry by the symbol and annotation of ABS Class +A1, +AMS, ACCU, SPS, E, Ice Class Notation C. Seismic survey vessels are capable of driving at a selected surveying speed through the water and the hull form of the marine seismic survey vessel is arranged to produce low wake field turbulence as it is widely used in the offshore oil and gas exploration field.

"As one of the global leaders in the offshore marine industry, we remain committed to continuously improving the standards in technical excellence and client-oriented services. Marine services in the seismic survey industry, like exploration and development support is an exciting field in which we have now established a firm footing. This project is part of our continuing commitment to upgrade our marine services with a modern fleet that is fit for purpose, to ensure that operational performance is sustained at the highest possible level. Given ST Marine's sterling reputation, I believe that we have found a reliable partner more than able to deliver a top quality product." ~ Brian TOWNSLEY, Deputy Managing Director, Swire Pacific Offshore

"We are very honoured to partner Swire Pacific Offshore to augment its modern offshore fleet. This contract is a significant milestone in ST Marine's relationship with SPO and we hope to partner SPO further in its dynamic growth. Through this contract, we shall be building our first seismic survey vessel in Singapore, leveraging our experience of having repaired and converted almost 100 seismic survey vessels." ~ CHANG Cheow Teck, President, ST Marine

Swire Pacific Offshore (SPO), with more than a century's experience in deep-sea shipping and towage and salvage, owns and operates over 65 offshore support vessels, with over 20 new vessels on order for delivery from yards in 2008-2011. The SPO fleet is one of the most modern in the world with an average age of 11 years, and is fully equipped to support a wide range of offshore activities including drilling, production, exploration, pipe-laying, subsea construction, seismic survey operations, FPSO operations and environmental solutions. Headquartered in Singapore, SPO has regional offices globally and operates vessels in every major oil exploration region outside of North America. Please visit www.swire.com.sg.

ST Marine, the marine arm of ST Engineering, provides turnkey building, repair and conversion services for a wide spectrum of naval and commercial vessels. In shipbuilding, it has the proven capabilities to provide turnkey solutions from concept definition to detailed design, construction, on-board system installation and integration, testing, commissioning to through-life support. It has also established a track record in providing high engineering content shiprepair and ship conversion services for a worldwide clientele. Please visit www.stengg.com.

ST Engineering is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors. Headquartered in Singapore, the Group reported revenue of $5.05b in FY2007 and ranks among the largest companies listed on the Singapore Exchange. ST Engineering has more than 19,000 employees worldwide, and over 100 subsidiaries and associated companies in 24 countries and 42 cities. Please visit www.stengg.com.

ST Engineering