Philly Shipyard : Signs Letter of Intent with a Leading Jones Act Operator to Build Up to Four New Containerships for the Hawaii Trade

Highlights

• Philly Shipyard and a leading Jones Act operator have executed a Letter of Intent and begun exclusive negotiations of definitive agreements
• The Letter of Intent contemplates the construction and sale of two firm plus two option (2+2) state-of-the-art, cost-effective and environment-friendly vessels for the Hawaii containership trade
• Philly Shipyard has already initiated construction of these vessels to support their optimum delivery dates

Philly Shipyard, Inc. (PSI), a wholly-owned subsidiary of Philly Shipyard ASA (Oslo: PHLY), is pleased to announce that it has entered into a Letter of Intent (LOI) with a blue chip U.S. shipping operating company for the construction and sale of up to four new, cost-efficient and environmentally friendly containerships with planned deliveries in 2020 and 2021. The LOI marks the entry into the next phase in the transaction process, building on ongoing discussions between the parties. The identity of the shipping operating company is not being disclosed at this time.

Under the terms of the LOI, it is contemplated that the shipping operating company will make an initial order for two 3,700 TEU containerships and receive options to order two additional sister ships. It is intended that these vessels will service the containership trade between the U.S. West Coast and Hawaii.

PSI has already begun construction of the vessels contemplated by the LOI in order to support their optimal delivery dates. These vessels are the continuation of the series of two similar 3,600 TEU 'Aloha Class' containerships currently under construction at PSI for the Hawaii trade-lane.

The transaction contemplated by the LOI is subject to agreement by the parties on definitive documents and fulfillment of certain closing conditions. The LOI provides for a period of exclusivity to negotiate and complete this transaction.

About Philly Shipyard:

Philly Shipyard is a leading U.S. commercial shipyard constructing vessels for operation in the Jones Act market. It possesses a state-of-the-art shipbuilding facility and has earned a reputation as the preferred provider of oceangoing merchant vessels with a track record of delivering quality ships. Philly Shipyard is listed on the Oslo Stock Exchange and is majority-owned by Aker Capital AS, which in turn is wholly-owned by Aker ASA. Aker is a Norwegian industrial investment company that creates value through active ownership. Aker's investment portfolio is concentrated on key Norwegian industries that are international in scope: oil and gas, fisheries and biotechnology, and marine assets. Aker's industrial holdings comprise ownership interests in Aker Solutions, Kvaerner, Aker BP, Aker BioMarine, Ocean Yield and Akastor.

Philly Shipyard has delivered 26 vessels in its nearly 20 year history, including four vessels for use in the Hawaii containership trade which were delivered in 2003-2006. Currently, Philly Shipyard is building two 50,000 dwt tankers for a subsidiary of Kinder Morgan, Inc. (Hulls 027 and 028) and two 3,600 TEU containerships for use in the Hawaii trade for Matson Navigation Company, Inc. (Hulls 029 and 030). As discussed above, Philly Shipyard has also initiated construction of up to four 3,700 TEU containerships for its own account (Hulls 031-034). For more information on Philly Shipyard transactions and projects, please visitwww.phillyshipyard.com.

Important information about this release:

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

This press release includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Philly Shipyard ASA and its subsidiaries and affiliates (the 'Philly Shipyard Group') lines of business. These expectations, estimates, and projections are generally identifiable by statements containing words such as 'expects', 'believes', 'estimates,' 'anticipates,' 'intends' or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for the Philly Shipyard Group's businesses, oil prices, market acceptance of new products and services, changes in existing laws and governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time. Although Philly Shipyard ASA believes that its expectations and the information in this press release were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in this press release. Neither Philly Shipyard ASA nor any other company within the Philly Shipyard Group is making any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the press release, and neither Philly Shipyard ASA, any other company within the Philly Shipyard Group nor any of their directors, officers or employees will have any liability to you or any other persons resulting from your use of the information in the press release. Philly Shipyard ASA undertakes no obligation to publicly update or revise any forward-looking information or statements in the press release, other than what is required by law.