August 12, 2002

Oceanfast Increases Share of Luxury Motor Yacht Market

Austal subsidiary, Oceanfast has added another vessel to their order book with the signing of a contract for a 58 metre luxury motor yacht.

Demonstrating confidence in, and demand for, Oceanfast’s world-class product, this contract is a direct result of the new client’s tremendous impression of the 57 metre “Sagitta”, successfully delivered by Oceanfast in July last year.

Austal’s Managing Director, Mr Bob McKinnon said the order demonstrates Oceanfast is quickly securing a greater percentage of the market share for luxury motor yachts.

“This new contract increases Oceanfast’s order book to five luxury yachts and takes the total value of Oceanfast vessels on order to AUD$250 million,” Mr McKinnon said.

“These five vessels represent around 4% of the world market for yachts over 40 metres in length so there is huge potential for growth in this division of our business.”

Designed by Oceanfast’s in-house design team and due for delivery in 2004, the 58 metre luxury motor yacht will feature entire aluminium construction and will be used for international cruising.

The new vessel will join four others currently under construction including the 69.5 metre Expedition Yacht, Aussie Rules for golfer, Greg Norman, which is progressing well towards launch and delivery.

Since acquiring Oceanfast in 1999, Austal has transformed the company and now has in place a solid management team, under Brad Draper, a stable workforce of around 500, substantial productivity improvement practices and world benchmark quality workmanship. As a result, Oceanfast is now a major player in the international super yacht market.

“Austal’s objectives are to become a ‘blue chip’ company in the long-term future and we are taking the necessary steps to ensure we have a wide product base in all sectors of our business,” Mr McKinnon said.

“Contracts such as this ensures Oceanfast will become a major contributor to company revenue and an important source of sustainable shareholder value for Austal."

Oceanfast’s progression in the luxury motor yacht sector, coupled with Austal’s success with the US military and the anticipated increase in market share for large ferry orders presents many exiting opportunities for the group.

Further Information

Contact: Austal
Phone: 61 8 9410 1111
Fax: 61 8 9410 2564