OTTO MARINE LIMITED

(Company Registration Number 197902647M)

(Incorporated with limited liability in the Republic of Singapore on 5 September 1979)

SALE AND LEASEBACK OF A WORK MAINTENANCE VESSEL

All capitalised terms undefined in this announcement shall assume the meanings ascribed to them in the announcement dated 19 September 2012.

1. INTRODUCTION

The board of directors (the "Board") of Otto Marine Limited (the "Company") refers to the queries made by the Singapore Exchange Securities Trading Limited ("SGX- ST") on 24 September 2012 in relation to the announcement made on 19
September 2012 on the above-captioned subject matter.

2. PURCHASE CONSIDERATION SGX-ST's query 1: We note that "the purchase price of the Vessel paid by the Purchaser was US$38.0 million". Please disclose the factors taken into consideration when determining the purchase consideration. Answer 1: The selling price of the Vessel paid by the Purchaser was US$38.0 million (the "Purchase Price") which is in line with the amount indicated in an independent valuation report. The proceeds from the Transaction would improve the liquidity of the Company and its subsidiaries (collectively, the "Group"). 3. DOCUMENTS FOR INSPECTION SGX-ST's query 2: Rule 1011 states, "Where a sale and purchase agreement is entered into, or a valuation is conducted on the assets to be acquired, the issuer must include a statement in the announcement that a copy of the relevant agreement, or valuation, report is available for inspection during normal business hours at the issuer's registered office for 3 months from the date of the announcement."

Please disclose the statement required under Rule 1011.

Answer 2: The sale and purchase agreement is available for inspection during normal business hours at the registered office of the Company at 9 Temasek Boulevard, #33-01, Suntec Tower 2, Singapore 038989 for a period of three (3) months from the date of this announcement.

By Order of the Board
See Kian Heng
Group Chief Financial Officer
1 October 2012

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