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SNTG Orders Four 43,000 Deadweight Ton Parcel Tankers To Be Built by Aker Yards In Florø, Norway
London, England -October 5, 2006 - Stolt-Nielsen Transportation Group (SNTG), a subsidiary of Stolt-Nielsen S.A. (NasdaqNM: SNSA; Oslo Stock Exchange: SNI), announced today that it will enter into an agreement with Aker Yards ASA (Aker Yards) to build in Florø, Norway four 43,000 deadweight ton (dwt) parcel tankers. The aggregate price for the four ships is expected to be approximately $350 million, with deliveries scheduled to take place between late 2008 and the end of 2009.
The four newbuildings will be of the same design as the two sophisticated parcel tankers ordered by SNTG from the Kleven Florø yard in 2005. Kleven Florø and Kleven Design became part of Aker Yards in August 2006. The total SNTG order for the six ships to be built by Aker Yards ø is approximately $510 million.
The new ships will be equipped with 24 stainless steel tanks and 15 coated tanks. The new fully double-hulled parcel tankers will meet both Marpol Annex I and Annex II cargo requirements and, with ship IMO ship type I, II, and III capabilities, will be able to transport the full range of difficult to handle cargoes which SNTG carries.
After this order, SNTG, and its partners, have an order book of 23 ships for delivery from 2007 until 2011. SNTG today owns and operates globally 148 ships ranging in size from 1,100 dwt to 40,200 dwt.
SNTG and Aker Yards, will also sign a Letter of Intent regarding future cooperation, emphasizing research, design and development that capitalize on the unique strengths of the two companies.
Otto H. Fritzner, Chief Executive Officer of SNTG, said, "After a global review of ship yards, we are pleased to have reached these important agreements with Aker Yards. Today's announcements represent not only a significant element of SNTG's ongoing fleet replacement plan and growth strategy, but also a step toward what we hope will be a long-term relationship with Aker Yards focused on mutually beneficial cooperation and development. Continued advancements in ship technologies, particularly those aimed at enhancing safety, reliability and environmental friendliness at a competitive price will be a priority of these cooperative efforts between Aker Yards and SNTG."
"We are very pleased and proud to win this contract of a further four newbuildings for SNTG. This new order, in addition to the two ships of the same class from the order placed last year, is a great endorsement from SNTG of the world-class competencies and the project execution experience of the people of Aker Yards. The contract provides us with the opportunity to deliver innovation to a leading provider of safe transportation of highly demanding chemicals. It also confirms Aker Yards strategy with the acquisition of Kleven Florø, Kleven Design and the stake in Damen Shipyards Okean, in order to establish a strong position in the market for specialized tankers ", says Karl Erik Kjelstad, President & Chief Executive Officer of Aker Yards.
A press conference will be held at 2 PM CEST at the Radisson SAS Scandinavia Hotel, Holbergs g 30, Oslo where both Niels G. Stolt-Nielsen and Kjell Inge Røkke will be present.
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About Stolt-Nielsen S.A.
Stolt-Nielsen S.A. (the "Company") is one of the world's leading providers of transportation services for bulk liquid chemicals, edible oils, acids, and other specialty liquids. The Company, through the parcel tanker, tank container, terminal, rail and barge services of its wholly owned subsidiary Stolt-Nielsen Transportation Group, provides integrated transportation for its customers. Stolt Sea Farm, wholly owned by the Company, produces and markets high quality turbot and Southern bluefin tuna.
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements may be identified by the use of words like "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "project," "will," "should," "seek," and similar expressions. The forward-looking statements reflect the Company's current views and assumptions and are subject to risks and uncertainties. The following factors, and others which are discussed in the Company's public filings and submissions with the U.S. Securities and Exchange Commission, are among those that may cause actual and future results and trends to differ materially from the Company's forward-looking statements: the general economic conditions and competition in the markets and businesses in which the Company operates; changes in the supply of and demand for parcel tanker, tank container and terminal capacity in the markets in which the Company operates; changes in the supply of and demand for the products we transport, particularly the bulk liquids, chemicals and other specialty liquids that form the majority of the products that we transport; prevailing market rates for the transportation services that the Company offers and the fish products that the Company sells; changes in bunker fuel prices; the cost and feasibility of maintaining and replacing the Company's older ships and building or purchasing new ships; uncertainties inherent in operating internationally; the outcome of legal proceedings; the Company's relationship with significant customers; the outcome of discussions with customers concerning potential antitrust claims; the impact of negative publicity; environmental challenges and natural conditions facing the Company's aquaculture business; the impact of laws and regulations; operating hazards, including marine disasters, spills or environmental damage; the conditions and factors that may influence the decision to issue future dividends; and the market for long-term debt. Many of these factors are beyond the Company's ability to control or predict. Given these factors, you should not place undue reliance on the forward-looking statements. Should one or more of these risks or uncertainties occur, or should management's assumptions or estimates prove incorrect, actual results and events may vary materially from those discussed in the forward-looking statements.