Otto Marine signs MOU for newbuilding and conversion
of cement carriers

Singapore, 5 September 2013

• Newbuilding of 5 cement carriers ranging from 7,500dwt to 15,000 dwt

• Potential for 2 additional bulk carriers to be converted into cement carriers, and an order for 1 Ocean Towing Tug.

Otto Marine Limited, (“Otto Marine” or the “Group”), a leading offshore marine company which specializes in building complex offshore support vessels, ship chartering and offers specialized offshore services, is pleased to announce that the Group has signed a Memorandum of Understanding (“MOU”) for the newbuilding of 5 cement carriers.

The 5 cement carriers have capacities in the range of 7,500 deadweight tonnes (“DWT”) to 15,000 DWT. Conversion works will be carried out in Otto Marine’s shipyard in Batam. Apart from the firm orders, there is also potential for the Group to secure contracts for the conversion of 2 additional bulk carriers into cement carriers, and a further order for a 3,500bhp Ocean Towing Tug from the same Indonesian customer.

“The Group is pleased to see the promise of a good order flow for our shipyard operations. Since the beginning of the year, we have made preparations and put in place a strong operational team to drive our focus on ship repair, conversion and fabrication projects going forward. Apart from our mainstay focus on the offshore and marine sector, concentrating on these services allows us to benefit from the growth in other sectors such as the cement industry. With the current versatility of our shipyard operations, the Group is widening our doors to more opportunities in order to boost returns and shareholders’ value.” Mr. Garrick Stanley, Chief Executive Officer

About Otto Marine Limited (OTML.SP)
Otto Marine Limited ("Otto Marine" or the "Company") is an offshore marine group engaged in specialized shipbuilding of offshore vessels for primarily Deep Sea applications. The shipbuilding includes ship repair and conversion. In addition, Otto Marine is chartering out its own fleet of sophisticated and environmentally friendly (clean/comfort class) Anchor Handling Tugs and Offshore Supply vessels for mainly Deep Sea applications.

Headquartered in Singapore, the Company owns and operates one of the large st shipyards in Batam, Indonesia-one of the most sophisticated yards in Asia Pacific. The yard is building to ABS, DNV and Norwegian class standards. Its customers are primarily deep sea and offshore operators and equipment companies who provide logistics support and offshore services to companies operating globally in the oil and gas industry.

Otto Marine’s specialized approach has allowed it to build up its expertise in constructing high specification deep sea and offshore support vessels, improve its production quality and efficiency and develop a competitive cost structure. This quality and level of sophistication has enabled the Company - as one of the few in Asia - to gain recognition in the construction of complex and sophisticated deep sea and offshore vessels.

Otto Marine was successfully listed on the Main Board of Singapore Exchange Securities Trading Limited (the “SGX-ST”) on 28 November 2008. For more information, please visit the Company’s website at http://www.ottomarine.com

Otto Marine press release