Odense sells Volkswerft Stralsund

Odense Steel Shipyard Ltd. (Odense Staalskibsv?rft A/S) has entered into agreement with the Hegemann Group of Companies, Germany, regarding the sale of Volkswerft Stralsund GmbH. Conclusion of the sale is subject to documentation of the necessary guarantees by the Hegemann Group which is expected by the end of July 2007.

The strategic importance of Volkswerft Stralsund for the Odense Steel Shipyard Group and A.P. Moller ? Maersk has been reduced and the shipyards have been unable to achieve operational synergy of an adequate scale. By selling to the Hegemann Group, an owner has been found who can establish the foundation for further development of Volkswerft Stralsund, for example through synergy with the other shipyards in the Hegemann Group.

The sale of Volkswerft Stralsund will not have any immediate effect on the employees as the shipyard has a full order book into second half of 2009.

The two parties have agreed not to disclose the purchase.