Information package – August 2006

• Dates back to 1928, when Schat Davits patented the first skates to launch a lifeboat from a listing ship.

• Since then developed to be the worlds largest manufacturer of maritime life saving systems/lifeboats, davits and winches

• Unique installed base– More than 10,000 ships and oil rigs relay on Schat-Harding for emergency evacuation

• This family of trusted brands has made Schat-Harding the first supplier to offer fully integrated packages of lifeboats, davits, hooks, winches, cruise tenders, and rescue boats, backed up by global service and after-sales

• Hundred of years of accumulated experience in maritime safety

Schat-HardingThe world’s largest manufacturer of maritime life saving systems/lifeboats, davits and winches

30.8.01 pkt. 1 Page 1

schat-harding

Schat-HardingGeograpic presence

Canada

USA

GermanyUnited Kingdom

America: 2 agentsAmerica: 2 agents Asia: 22 agents

Asia: 22 agentsEurope: 15 agentsEurope: 15 agents

Norway

The Netherlands

Singapore

Czech Republic

40 employees 372 employees 96 employees

China

SERVICE PARTNERS:

Active

S-H OFFICES:

S. KOREA

JAPAN

Osaka

AUSTRALIA

Perth

Melbourne

Sydney

INDIA

UAE / BAHRAIN

SPAIN

PORTUGAL

GIBRALTAR

GREECE

MEXICO

Schat-HardingCompany structure

Sales&Marketing

Rosendal

Germany

UK

After Sales & Service

Netherlands

US

Singapore

Rosendal

Germany

UK

Netherlands

US

SingaporeAsia Pacific

Americas

EuropeØlve

Qingdao

Slany

Production

US

Schat-Harding Organizational Chart

Schat-Harding Legal Chart

Umoe Schat-Harding ASNorway

Umoe Schat-Harding BVNetherlands

Umoe Schat-Harding Boatbuilding Qingdao Co LtdChina

Umoe Schat-Harding FESingapore

Umoe Schat-Harding GmbHGermany

Umoe Schat-Harding Inc.US

Umoe Schat-Harding LTDUK

Umoe Schat-Harding s.r.oCcech Republic

100%

100%

100%

100%

100%

100%

Schat-HardingProduct range

Schat-Harding has one of the most extensive product ranges in the industry, and is currently in process of developing new products and services that will provide further revenue growth opportunities for Schat-Harding

Schat-HardingMarket segments

World leader. Delivers complete

systems, including Cruise Tenders and Partially Enclosed Lifeboats (PELB)

Approximate market share*:

Life boats: +50%

Davits: +40%

Offers totally enclosed lifeboats and davits, conventional lifeboat systems and freefall lifeboats

Approximate market share*: 6-7%

Totally enclosed lifeboats and davits for platforms, as well as freefall and conventional systems

Approximate market share*: 25%

Cruise Merchant Offshore After Sales

Global leader in the high-margin AS & S market

Estimated 3x larger revenues than no. 2 in the market

USH has the largest and most extensive service network within its product niche

*Source: Schat-Harding estimates

•Newbuilding activity•Sailing fleet/offshore units in production•Demolition rate. High rate increases the newbuilding activity

•The world economy•Economic development in America•Increased time for vacation•Focus on safety in the industry

•Freight markets•Oil price•New safety and environmental regulations•Ageing fleet

•Oil price•USD level•Demand for rigs•New investments•New safety and environmental regulations

•Sailing vessels with USH equip.•New safety and environmental regulations•Ageing fleet•Freight markets•Oil price•Change of flag

Cruise Merchant Offshore After Sales

DRIVERS

Schat-HardingMarket drivers

Products installed on more than 10,000 oil rigs and vessels should give strong after sales customer base for this business

Schat-HardingExtensive product and services range for the important after market

Solas/IMO regulations

• New regulation in IMO* to prevent accidents with LSA systems– New Amendments to Sola’s Chapt. III Adopted in MSC.78 for training,

servicing and maintenance of LSA – All inspections (ex. Weekly and monthly inspections), servicing and repairs

should be conducted by the OEM*’s representative, or a person appropriately trained and certified by the OEM for the work to be done

– Compulsory annual and five-yearly inspections, servicing and testing will require trained and authorised personnel by the OEM

– Entered into force 1st July 2006

New Solas/IMO regulations will increase demand strongly for OEM’s products and services

*IMO: International Maritime Organisation. OEM: Original Equipment Manufacture

Schat-HardingProfit & Loss*

NOK 1000 2004 2005 Per 1Q06 Per 2Q06

Total operating income 430 727 391 540 116 659 236 153Raw materials and consumable used 319 774 254 304 72 892 147 553Other operating costs 97 180 100 660 25 758 51 282EBITDA 13 773 36 576 18 009 37 317Write down of bad debt 2 000 - - - Depreciation & amortisation 11 336 7 880 1 987 4 013Operating profit 437 28 696 16 021 33 304Financial income 9 021 7 114 1 336 3 409Financial expense 4 966 11 437 942 4 060Profit/loss before tax 4 493 24 373 16 415 32 653Tax 2 226 -4 231 3 103 10 363Net profit/loss for the period 2 266 28 604 13 313 22 290

*Consolidated, unaudited Umoe Schat-Harding Group figures. 2004 and 2005 figures are based on audited accounts for the respective Schat-Harding companies.

Schat-HardingBalance Sheet*

Comments

Schat-Harding balance sheet – will be refinanced after completion of acquisition, and debt to Umoe Industrier repaid (NOK 39 million)

Schat-Harding has no undrawn committed or uncommitted credit facilities from any financial institutions

Bank guaranties of approximately NOK 63.5 million outstanding as per 30.06.06

Balance sheet (NOK 1000) 2004 2005 Per 1Q06 Per 2Q06

Intangible assets 16 731 15 617 14 381 12 838Tangible assets 48 453 53 060 48 473 47 913Financial assets 1 348 1 140 1 030 1 027Total fixed assets 66 532 69 817 63 884 61 778

Inventories 128 876 125 341 101 475 136 495Other debitors 71 597 146 200 108 475 123 206Total debitors 200 473 271 541 209 950 259 701Bank deposits/cash 31 028 31 854 27 464 27 177Total current assets 231 500 303 395 237 413 286 878

Total assets 298 033 373 212 301 297 348 656

Share capital 47 782 51 150 47 777 47 778Retained earnings 46 803 80 653 91 706 100 693Total equity 94 585 131 803 139 483 148 471

Provisions 16 114 12 573 12 459 12 419Other long-terms liabilities 52 738 70 584 44 314 55 188Long term liabilities 68 852 83 157 56 773 67 607Current liabilities 134 596 158 251 105 040 132 578Total liabilities 203 448 241 409 161 814 200 185

Total equity and liabilities 298 033 373 212 301 297 348 656

*Consolidated, unaudited Umoe Schat-Harding Group figures. 2004 and 2005 figures are based on audited accounts for the respective Schat-Harding companies.

Schat-HardingStrong order backlog (excluding options*)

0

100

200

300

400

500

600

1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 2Q 06 3Q 06

NO

K M

ill

*Options related to existing orders sums up to approximately 14 million euro. Contracts will become effective if end customers exercises its options with the yards.

www.schat-harding.com

Address: Head Office: Seimsfoss 5450, Rosendal, Norway.

Org. number:Umoe Schat-Harding AS: 937989202: