ABU DHABI SHIPBUILDING COMPLETES ITS FIRST U.S. NAVY SHIP REPAIR CONTRACT

June 24, 1997, ABU DHABI, U.A.E. -- Abu Dhabi Ship Building (ADSB) has completed repairs on the U.S. military transport ship USNS Gordon, its first contract for work on a U.S. Navy vessel since the shipyard was established approximately one year ago.

ADSB received the contract from Newport News Shipbuilding (NYSE: NNS), Newport News, Virginia, USA, a major shareholder in ADSB. The Gordon repair project involved completion of warranty work for the U.S. Military Sealift Command vessel during its recent visit to the Arabian Gulf.

The USNS Gordon recently underwent a major conversion by Newport News from a standard container ship to a sophisticated, roll-on roll-off vessel for use by the U.S. Military Sealift Command. The converted ship was delivered in August, 1996 at the Newport News facilities in the U.S. and is presently in the Gulf on its maiden voyage. Like any newly delivered vessel, a number of machinery and equipment items needed adjustment or maintenance after their initial operating period. Since Newport News personnel provide both the executive and technical management services for ADSB, the Abu Dhabi company was a logical choice to complete this warranty work.

.ADSB completed the repairs while the ship was docked in Jebel Ali Port, about 50 miles north of Abu Dhabi. A team of ADSB specialists and supervisors was dispatched to Jebel Ali from the company’s Abu Dhabi location and worked for several weeks to complete the required work on the vessel.

"We believe the U.S. Navy personnel on the Gordon were well pleased with our work and we intend to pursue additional opportunities with this particular customer in the future," said Rocky Holliday, ADSB’s managing director.

The work involved a number of electrical, machinery and welding-related items discovered during the ship’s initial deployment. NNS sent a technical representative to the Jebel Ali Port where he stayed during the entire job to coordinate between the two companies and interface with the U.S. Navy customer. ADSB’s knowledge of U.S. Navy equipment and procedures greatly facilitated the work and reduced the expected repair time.

Besides the actual warranty work, ADSB also coordinated the receipt of materials provided by Newport News, provided access to the port, and supervised several subcontractors. ADSB was also able to procure additional required materials from its local vendor list. The ADSB team worked closely with the ship’s crew to provide maintenance services on a number of different systems, often while they were still operating, to avoid shutting down main electrical power and critical equipment.

ADSB began operations in mid-1996 after a very successful public stock offering in the United Arab Emirates. In July of last year, ADSB bought an existing, small shipyard just outside of Abu Dhabi. The company is currently building, refitting, and repairing vessels at this existing site while a new, much larger shipyard facility is being designed and constructed at a location nearby. Newport News currently has a team of 16 employees permanently located in Abu Dhabi providing both executive and technical management for the new company.

"This was ADSB’s first opportunity to provide support for U.S. Navy ships in the Gulf," said Holliday. "Now that the U.S. Navy has worked with us and seen what our local NNS personnel are able to do, I’m hopeful that ADSB will be able to provide repair and maintenance services for other U.S. Navy ships deployed in the region."

Newport News Shipbuilding is America's largest ship design and construction company. It has produced approximately 800 ships during its 111 years of operations - including Navy aircraft carriers, submarines, and cruisers. The company is currently building the nuclear-powered aircraft carriers Harry S. Truman (CVN 75) and Ronald Reagan (CVN 76) and has begun work in preparation for construction of the Navy's New Attack Submarine. It is also building nine Double Eagle product tankers. Its 1996 revenues totaled $1.87 billion, with earnings before interest and taxes of $140 million. The current backlog is approximately $3.3 billion. The workforce numbers 18,000, making it Virginia's largest private employer.