Singapore, 28 May 2003:
Shareholders of Neptune Orient Lines (NOL) have approved the sale of the company’s crude oil transportation company American Eagle Tankers (AET) to Malaysia International Shipping Corporation Berhad (MISC).

NOL shareholders at an Extraordinary General Meeting in Singapore today voted unanimously in favour of the proposed sale of the entire share capital of AET, which is still subject to the approval of MISC shareholders.

NOL Chairman Cheng Wai Keung welcomed the favourable response and thanked shareholders for their support for the proposal, which paves the way for the NOL Group’s exit from the crude oil transportation business.

“This is a strategic move that will allow us to focus on our core container transportation and logistics businesses, APL and APL Logistics, while at the same time strengthening our balance sheet and unlocking value for shareholders,” he said.

Executive Director and CFO, Lim How Teck said that under the terms of the agreement, MISC will pay a purchase price for equity of US$445 million in cash at closing for the acquisition of the lightering specialist company, which today operates 29 Aframax tankers and two Very Large Crude Carriers (VLCCs), principally in the Gulf of Mexico/Atlantic basin. MISC will also fund a US$75 million cash dividend from AET to NOL.

The purchase price is also subject to adjustment on a dollar-to-dollar basis for the profits earned from February 8, 2003 to the closing date. MISC has agreed as well to increase the equity price should AET achieve certain performance milestones over the next two years.

“As a result of the strategic divestment, the NOL Group is expected to reduce its debt burden, with net gearing cut by approximately half,” Mr Lim said.

Pursuant to approval by MISC shareholders and regulatory approval, the sale of AET is expected to be completed by the end of July 2003.

ABOUT NOL

NOL is a Singapore-based global transportation and logistics company engaged in shipping and related businesses. Its container transportation arm, APL Liner, provides customers around the world with container transportation services that combine high quality inter-modal operations with state-of-the-art information technology, while APL Logistics provides end-to-end supply chain management services through its global network. Its crude oil transportation company, American Eagle Tankers (AET) provides quality services to the oil industry, principally in the Caribbean and Gulf of Mexico region, currently operating 29 Aframax tankers, of which seven are chartered in, and two VLCCs.