Fairmount Heavy Transport N.V.

ConversionVessel design improvements• In 2005, the Company planned for the conversions to take place in Q3/Q4 2006. The estimated budget forconversion of the two barges to vessels was MUSD 60.• The conversion has been postponed as the Company saw the clear benefit of:• More detailed and accurate design of the scope of work, and therefore a larger degree of firm prices from yards• Performing a model test to optimise speed and directional stability performance• This resulted in several important design improvements …• Propulsion system based on heavy fuel instead of marine diesel• Increased steel weight (based on new DNV rules)• Re-location of propellers for maximum speed and sea keeping capabilities, and design of a special bulbous bow• Advanced auto pilot steering system• Preparations for compliance with notations such as redundant propulsion (RP) and future dynamic positioning class 2 (DP2)• … and significant competitive advantages for FHT• Largely fixed prices for conversion, limiting the possibility of future cost overruns• Increased speed of 1.0 knot through optimising the location of the thrusters• Annual savings of MUSD 2.5 – 3.0 of fuel costs (heavy fuel rather than marine diesel)Private and confidential – Page 7