TTS acquires Umoe Schat-Harding

TTS Marine ASA has entered into a letter of intent (`Heads of Agreement`) with Umoe Industri regarding the takeover of Umoe Schat-Harding, which supplies lifeboats and other life-saving equipment to the shipping and offshore markets.

The agreed purchase price is around NOK 360m out of which NOK around 210m will be paid in cash that will be financed by debt and around NOK 150m financed by issue of 4,000,000 shares in TTS Marine ASA with a subscription price of NOK 37.71 per share based on average share price the last 5 trading days. After the execution of this agreement Umoe Industri`s equity share of TTS will be 35%., including the 18% of TTS shares purchased y Umoe Industri in a separate transaction today.

The Heads of Agreement is subject to final approval of the Sale/ Purchase Agreement by 1 October 2006 by both companies` board of directors. TTS will conduct a due diligence review of the company during September. Umoe Schat-Harding`s properties in Norway will at the same time be sold to Umoe for 20m NOK in a sale-leaseback agreement of 15 years to market conditions.

Lifeboats and security equipment will by takeover of Umoe Schat-Harding be established as a new division in TTS, headed by the present managing director, Ove R?sseland.

Umoe Industri`s basis for this transaction is to contribute to the development of TTS Group as an active and long-term shareholder. To facilitate active ownership, Umoe Industri AS will contemplate further acquisition of shares both before and after the execution of the agreement. Umoe Industri AS has for the time being no intention to get into a compulsory share offer position in the company.

The takeover of Umoe Schat-Harding is in accordance with TTS` strategy of expanding through organic growth and acquisitions, and to become a One-stop-shopping center for deck equipment on a global basis. The new TTS Group will comprise five divisions: Dry Cargo Handling, Marine Cranes, Port and Material Handling and Deck Machinery in addition to the new division life boats and life-saving systems. The takeover will imply that TTS increases from 17 operating units in nine countries to a Group of 25 units in 12 countries. The new locations will be Singapore, The Netherlands and England. Also a global network of sales- and service representatives will be included into the TTS Group.