OTTO MARINE LIMITED

(Company Registration Number 197902647M)

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

SALE OF ENTIRE EQUITY INTEREST IN OTTO LIMIN MARINE PRIVATE LIMITED


In response to the queries from Singapore Exchange Securities Trading Limited ("SGX") with regard to the announcement on "Sale of Entire Equity Interest in Otto Limin Marine Private Limited" ("OLM") released on 30 September 2013, the Board of Directors of Otto Marine Limited (the "Company") wishes to provide the information as set out below:

Query A

Please disclose the details with regards to Chapter 1010 (5)

Company's response

As advised by our initial announcement, the net value of the asset disposed of is US$0.562 million. This is also the net tangible asset value. OLM is a private company and there is no readily available open market value. The consideration was arrived at after (1) management's assessment of the net tangible asset value of OLM and contracts secured and (2) willing-buyer-willing-seller basis commercial offer by the buyer.

Query B

Provide Relative figures computed pursuant to Rule 1006 of the SGX Listing Manual.

Company's response

None of the relative figures computed on the applicable bases as set out in Rule 1006 of the Listing Manual of the Singapore Exchange Securities Trading Limited (the "SGX-ST Listing Manual") are applicable and/or exceeds 5%. As a result, the Sale is "Non- discloseable Transaction" for the purpose of Chapter 10 of the SGX-ST Listing Manual.
Nonetheless, the relative figures computed pursuant to the Rule 1006 of the SGX Listing
Manual are as follows:

Rule

1006(a)

The net asset value of the assets to be disposed of, compared with the Group's net asset value. This basis is not applicable to an acquisition of assets.

0.2%

Rule

1006(b)

The net profits attributable to the assets acquired or disposed of, compared with Group's net profits.

1.1%

Rule

1006(c)

The aggregate value of the consideration given or received, compared with the Company's market capitalisation based on the total number of issued shares excluding treasury shares.

0.4%

Rule

1006(d)

The number of equity securities issued by the Company as consideration for an acquisition, compared with the number of equity securities previously in issue.

NA

By Order of l he Board

Michael See Kian Heng

Executive Director & Group Chief Financial Officer

7 October 2013

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