Cosco Corporation (Singapore): Cancellation and rescheduling of vessel deliveries

The Board of Directors of COSCO Corporation (Singapore) Limited (the “Company”) wishes to announce that its subsidiary, COSCO (Dalian) Shipyard Co., Ltd. (“COSCO Dalian”) (being a subsidiary of the Company’s 51% owned subsidiary, COSCO Shipyard Group Co., Ltd) has, following the request of a European shipowner (the “Buyer”), entered into a cancellation agreement (“Cancellation Agreement”) in relation to the cancellation of the shipbuilding contract for an 80,000 dwt bulk carrier (the “Vessel”). Construction of the Vessel being the subject of the Cancellation Agreement has not commenced. As part of the
agreement to cancel the order for the Vessel, the Buyer has paid compensation to COSCO Dalian.
The Board of Directors of the Company also wishes to announce that COSCO (Zhoushan) Shipyard Co., Ltd. and COSCO (Guangdong) Shipyard Co., Ltd. (the “Sellers”) (being two subsidiaries of the Company’s 51% owned COSCO Shipyard Group Co., Ltd) have, following requests from two Asian shipowners (the “Buyers”), rescheduled the deliveries for a total of four units of bulk carriers of 57,000 dwt each.
Pursuant to the rescheduling, the delivery month for the last of the four vessels will be April 2012.
The agreements on the above cancellation and reschedulings of vessels’ deliveries have been acceded to upon the request of and after negotiations with the shipowners.
The above cancellation and rescheduling are not expected to have any material impact on the net tangible assets (NTA) and earnings per share (EPS) of the Company and the Group for the year ending 31 December 2010.