Polarcus reports half-year results

Company News - August 8, 2008

Polarcus Limited, the newly formed marine geophysical company, has announced its interim results for the first six months of 2008.

Financial highlights in the first six months of 2008 included:

• Polarcus has secured more than US$161 million in new equity
• During the first six months Polarcus has booked close to US$65 million in CAPEX. The total CAPEX for six planned vessels is budgeted to approximately US$900 million.
• In the first half of 2008 the company has secured US$180 million in sale-lease back and US$60 million in vendor financing.
• An additional US$50 million in new equity and US$90 million in debt financing has been secured after the end of the reporting period.

Operational highlights in the first six months of 2008:

• In April and May Polarcus signed shipbuilding contracts with Drydocks World – Dubai for six Ulstein Design X-bow seismic survey vessels
• On 15 May and 8 June respectively, the company commenced steel cutting and production of the vessels one and two, type Ulstein Design SX124
• Polarcus launched its external website on the 22 May providing updated information about the company and the progress of its projects
• The company has continuously focused on hiring trained and experienced personnel, and at the end of the reporting period 43 new employees were employed

"We have made an excellent start to building the company, with critical yard slots, long lead items, and key equipment contracts all secured. Recruitment of personnel has progressed well, with the majority of key management positions either filled or pending commencement of employment, and we are confident of our ability to continue recruiting experienced industry professionals," said Rolf Ronningen, the company's CEO.

Polarcus has now raised more than US$540 million in new equity and debt financing as well sale leaseback and vendor financing.

The company’s shares have been listed and are trading on the Norwegian OTC under the ticker PLCS.

"We are very pleased with the reception of Polarcus among investors worldwide, despite the uncertain situation in global financing markets. We are on track with our plans, and are on time and budget for delivery of the first vessel and subsequent 3-D operations in the third quarter next year," said Ronningen.