Settlement Agreement in Respect of Ropax Contract

Singapore, 31 October 2011

Further to the announcements made by ST Engineering on 19 March 2011, 24 March 2011 and 13 June 2011, ST Engineering would like to update its shareholders that ST Marine, the marine arm of ST Engineering, has entered into a settlement agreement (Settlement Agreement) dated 31 October 2011 with Louis Dreyfus Armateurs (LDA) in respect of the shipbuilding contract for the Roll-on/Roll-off Passenger ferry (Ropax Contract) contracted in July 2007.

Under the terms of the Settlement Agreement, without admission of liability on either party, both LDA and ST Marine have agreed that all claims arising out of the Ropax Contract are fully and finally resolved and settled. As part of such settlement, ST Marine has agreed to pay to LDA a sum that is not more than 10% of the contract price (inclusive of variation orders) as previously announced on 13 June 2011.

The Settlement Agreement 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.

ST Marine (Singapore Technologies Marine Ltd), 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. ST Marine also provides a suite of sustainable environmental engineering solutions via its environmental engineering subsidiaries led by STSE Engineering Services Pte Ltd (STSE). Please visit www.stengg.com.

ST Engineering (Singapore Technologies Engineering Ltd) is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors. Headquartered in Singapore, the Group reported revenues of $5.98b in FY2010 and ranks among the largest companies listed on the Singapore Exchange. ST Engineering has more than 20,000 employees worldwide, and over 100 subsidiaries and associated companies in 24 countries and 45 cities. Please visit www.stengg.com.

Singapore Technologies Engineering Ltd. press release