Ezra - Vessel operating agreement for 4 AHTS

To operate four new AHTS for an offshore specialist fund: Ezra has entered into a vessel operating agreement with an offshore specialist fund to manage and operate 4 AHTS for an offshore specialist fund. Ezra will receive half-share of the profit earned in return, after deducting direct operating expenses from the charter revenue. Ezra's involvement would be providing the operating crew and securing the charter contract.

First vessel to come on-stream 1Q 2010: All the 4 vessels are under construction at the moment and the first one is expected for delivery in 1Q 2010. The vessels have yet to be chartered out but we believe there should be no difficulty in securing charter contracts for the vessels.

Enhancing returns without capex: This agreement essentially allows Ezra to continue growing its chartering income stream without incurring significant capex. Each AHTS is estimated to cost around US$11- 15MM.

Not new news but could provide short term price catalyst: This announcement is actually not new news as the company briefly mentioned about these 4 potential vessels during its Subsea business plan briefing in July 2009. However, the firming up of the operating agreement now provides greater visibility as far as capacity expansion is concerned, which could provide some share price catalyst.

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