Fugro N.V. — Annual Report 2006

Mar 9, 2007

PRESS RELEASE

TUGRO

Leidschendam, the Netherlands, 9 March 2007

Fugro: successful 2006; upward trend continues

• Revenue rose by 24% to EUR 1,434 million
• Net result rose by 42% to EUR 141 million
• Result from operating activities (EBIT) rose by 47% to EUR 212 million
• All the divisions contributed towards the improvement of the net result
• Very well filled order backlog at the beginning of 2007
• It is proposed that the dividend for 2006 be increased to EUR 0.83 per (certificate of) ordinary share (2005: EUR 0.60)

Key figures (in EUR million)	31 December 2006	Change	31 December 2005
Revenue	1,434.3	23.6%	1,160.6
Net result	141.0	41.9%	99.4
Cash flow	226.1	28.4%	176.1
Result from operating activities (EBIT)	211.6	46.8%	144.1
Investments (including acquisitions and assets under construction)	245.9	172.0%	90.4
Net profit margin (%)	9.8		8.6
Earnings per share (EUR)	2.05	35.8%	1.51
Number of employees at year-end	9,837	15.3%	8,534

K.S. Wester, President and Chief Executive Officer of Fugro N.V.: 'This past financial year was, in every sense, a success for Fugro. Favourable market conditions helped us to once again achieve record highs for revenue and net result.

Our strong organic growth shows Fugro's flexibility to respond to market developments. The number of employees was increased during 2006 by approximately 1,300 to almost 10,000 at the end of the year, which is also the result of strategically important acquisitions. Based on a very well-filled order backlog we are working towards continuing growth of revenue and result in 2007 and given the current market conditions, Fugro's objective for the coming period is to at least maintain a net profit margin of around 10%.

Business development

The strong organic growth was mainly the result of continuing high global demand for oil and gas related offshore services, as well as of the increase of investments in infrastructure. To enable us to continue to meet the increasing demand, in 2006 we invested in extra people and additional equipment: ROVs (Remotely Operated Vehicles), a new AUV (Autonomous Underwater Vehicle), seismic equipment (including measuring cables – so-called 'streamers') and aircraft. These investments only made a limited contribution towards the 2006 result because, due to delivery times, not all the equipment will be available until 2007. The expansion and modernisation of Fugro's seismic capacity is a response to the growing

Fugro N.V. P.O.Box 41 2260 AA Leidschendam The Netherlands Tel +31 70 3111422 Fax+ 31 70 3202703 ir@fugro.com www.fugro.com

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demand for this type of service. Fugro's goal is to expand its position in the offshore seismic market. With the focus on a good geographical spread, Fugro wants to operate in this market segment with a fleet of eight to ten vessels, some owned, some chartered.

This fleet expansion and modernisation programme comprises five new vessels some of which are replacements for vessels on short-term charter.

The goal is to triple the revenue from seismic surveys in the period 2005-2008. The revenue is expected to come close to EUR 400 million in 2008.

The fleet expansion involves the following vessels:

• 'Geo Atlantic', 3D/4D seismic vessel, length 121 metres, in operation since October 2006, long-term charter agreement;
• 'Geo Barents', 3D seismic vessel, length 77 metres, will be launched in March 2007, three-year charter agreement, from March 2010 under Fugro ownership;
• 'Seisquest', 3D/4D seismic vessel, length 92,2 metres, four-year charter agreement commencing June 2007;
• 'Geo Celtic', a new 3D/4D seismic vessel, length 101 metres, that will come into operation in June 2007, multi-year charter agreement;
• 'Geo Carribean', 3D/4D seismic vessel, length 101 metres, will be owned by Fugro and will be launched in October 2008.

Fugro is also investing in five new vessels for activities other than seismic surveys:

• 'Fugro Gauss', a survey vessel, length, 68 metres, will be acquired in March 2007;
• 'Fugro Discovery', a survey vessel, length 70 metres, owned by Fugro, will commence in May 2007;
• Fugro Enterprise', a survey vessel, length 52 metres, is under construction and will be owned by Fugro, launch in June 2007;
• 'Fugro Saltire', a ROV sub-sea support survey vessel, length 110 metres, to be launched in February 2008; long-term charter with an option to purchase in 2013;
• 'Fugro Synergy', a multi-purpose vessel, length 103.8 metres, will be owned by Fugro, launch in November 2008.

Globally Fugro operates around 45 vessels.

During 2006 Fugro undertook several strategically important acquisitions.

• In May 2006 Seacore Ltd in the United Kingdom was acquired. This company operates internationally in the oil, gas, mining and sustainable energy markets and supplies services for geotechnical and scientific soil investigations offshore and in coastal regions. Much of the company's equipment, such as jack-up rigs, is designed in-house.
• In September 2006 Rovtech Ltd in the United Kingdom was acquired, which has 34 ROVs with which it provides a range of services to the oil and gas industry and specialisations that include the inspection, repair and maintenance of oil and gas installations. The combination of Fugro's global network and Rovtech's services will lead to a substantial synergy in and strengthening of the survey activities for offshore construction, drilling and underwater technologies.
• Since October 2006 OSAE Survey and Engineering Gesellschaft für Seevermessung m.b.H. in Germany has strengthened Fugro's offshore survey activities that are not related to the oil and gas market. These mainly involve governmental orders for coastal mapping projects within the framework of the United Nations Convention Law of the Seas (UNCLOS) and Exclusive Economic Zone (EEZ).

Several smaller companies were also acquired.

In January 2006 Fugro acquired a 100% interest in Surrey Geotechnical Consultants Ltd in the United Kingdom.

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The acquisition of the Canadian data management company Trango Technologies Inc. in August 2006 has enabled Fugro Data Solutions to broaden its package of services in the field of data collection and management.

Fugro also purchased the business activities of the geotechnical company ECOS Umwelt GmbH in Germany in August 2006. This acquisition has strengthened Fugro's position in Germany.

In the same month Fugro Data Solutions acquired the activities, projects and client database of Geodata Inc, the United States.

In December 2006, Fugro acquired all the shares of Aperio Ltd in the United Kingdom.

This company specialises in geophysical surveys for infrastructure projects.

Results 2006

Revenue and costs development

In 2006 revenue rose by 23.6% to EUR 1,434.3 million (2005: EUR 1,160.6 million). Organic growth was 18.9%. Acquisitions increased the revenue by 6.8%, while foreign currency effects and disposals together caused 2.1% drop in revenue.

The increase in revenue has higher costs as a consequence. Third party costs rose by 24.0% to EUR 503.1 million (2005: EUR 405.7 million), which is in line with the revenue. Personnel expenses rose by 18.2% to EUR 426.6 million (2005: 361.0 million). Personnel costs as a percentage of revenue declined slightly to 29.7% (2005: 31.1%). The average costs per employee rose by 3.6% (2005: 5.4%).

Depreciation of tangible fixed assets rose by 12.7% to EUR 78.2 million (2005: 69.4 million). Depreciation as a percentage of revenue declined slightly to 5.5% (2005: 6.0%). Other operating expenses rose by 20.0% to EUR 221.7 million (2005: 184.7 million), as a percentage of revenue they decreased slightly to 15.5% (2005: 15.9%).

Result from operating activities (EBIT)

Result from operating activities (EBIT) was EUR 211.6 million. This is 46.8% higher than in 2005 (EUR 144.1 million).

Net finance costs and taxes

The net finance costs amounted to EUR 26.4 million (2005: EUR 16.2 million).

Exchange rate differences are included in the net finance costs (2006: loss EUR 7 million; 2005: profit EUR 4 million).

The tax charge on the profit before taxes rose to 23.4% (2005: 20.9%). In 2006 more profit was achieved in countries with a relatively higher tax rate, which meant that the overall tax charge rose. The company strives for a relatively low tax rate through an efficient tax and company financing structure. The increase was partially off-set because the non-capitalised fiscally compensable losses could be utilised in a number of countries due to the better than expected results achieved in those countries. The final tax charge depends in part on the geographical spread of the projects that are carried out.

Net result

The net result rose by 41.9% to EUR 141.0 million (2005: EUR 99.4 million), after deducting third party interests in the profits of subsidiary companies. This amounts to EUR 2.05 per share (2005: EUR 1.51), an increase of 35.8%.

There were no impairments (extraordinary devaluations) of tangible and intangible assets in 2006. The net profit margin rose for the third consecutive year and amounted to 9.8% (2005:

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8.6%).

Cash flow and investments

In 2006 the total cash flow from operations amounted to EUR 226.1 million (2005: EUR 176.1 million). This equates to EUR 3.29 per share (2005: EUR 2.67), an increase of 23.2%. Investments in tangible fixed assets (including acquisitions and assets under construction) against this operational cash flow amounted to EUR 245.9 million (2005: EUR 90.4 million). Investments in assets under construction amounted to EUR 42,0 million (2005: EUR 1.5 million).

Each year Fugro invests between EUR 85 million and EUR 90 million to maintain the existing capacity in so-called 'maintenance capex'. As announced at the beginning of the year, additional investments were made to enable organic revenue growth to continue in the future. These investments amounted to around EUR 100 million. In the course of 2006 Fugro also announced that the vessel fleet would be expanded.

This involves investments not only in vessels but also in equipment (including streamers). Part of these investments in vessels and related equipment will not become operational until 2007 respectively 2008.

The relevant instalments (EUR 42.0 million) are recognised in the annual accounts as assets under construction.

The 2006 investments can be analysed as follows (x EUR million):

Maintenance capex	83
Additional investments	100
Assets under construction (primarily vessels and streamers)	42
Total investments in tangible fixed assets	225

In 2007 and 2008 further investments to an amount of EUR 250 million will be made in addition to the annual maintenance capex of approximately EUR 90 million. These extra investments of around EUR 250 million relate to the progress payments for the vessels and the expansion of the operational asset base.

Dollar exchange rate

The average US dollar rate for 2006 was EUR 0.79 (2005: EUR 0.81). A decreasing dollar rate during the year was one of the causes of the negative exchange rate result of around EUR 7 million, compared with the EUR 4 million exchange rate gain achieved in 2005. The balance sheet was also influenced by the US dollar. At the end of 2006 the dollar rate was EUR 0.76 (end of 2005: EUR 0.85). As a result, Fugro's (shareholders') equity movement at the end of 2006 was 7% negative.

Number of employees

In view of the favourable market conditions and prospects, during 2006 the number of employees was increased by 1,303 to 9,837 at the end of the year (2005: 8,534). Approximately 29% of this growth was the result of acquisitions. The average number of employees over the year was 9,262 (2005: 8,121). Fugro also has a large, global pool of experienced and reliable freelance professionals at its disposal who are employed on a project basis.

Dividend proposal

It is proposed that the dividend for 2006 be increased to EUR 0.83 per ordinary share (2005: EUR 0.60), paid, according to the preference of the shareholder: in cash, or in (certificates of) ordinary shares. The proposed dividend equates with a pay-out percentage of 41% of the net result.

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Post balance sheet date events

In January 2007 the geotechnical company GECO Umwelttechnik GmbH in Austria was acquired. This acquisition involved an amount of EUR 1.0 million.

In January 2007 orders were confirmed for geotechnical soil surveys related to coast protection work in New Orleans and California, the United States. These orders represent a total value for Fugro of around EUR 40 million.

In the same month Fugro has been awarded contracts for offshore seismic surveys in Norway to be executed during the summer season in 2007. The combined value of the contracts is in excess of USD 50 million (EUR 40 million).

In February 2007 Fugro has been awarded a contract for offshore seismic surveys in the Middle East. Work will start in late April 2007 and the duration of the project is up to twelve months. The total value of the contract is USD 38 million (EUR 29 million).

In March 2007 Fugro signed a letter of intent to acquire 100% of the shares in MAPS Geosystems. The transaction is subject to contract finalisation and is expected to be completed in April 2007. MAPS is a leading producer of aerial survey images with more than thirty years of operational experience throughout the Middle East and Africa. MAPS' revenue in 2006 was USD 16 million (EUR 12 million).

Backlog

At the beginning of 2007 the backlog of work to be carried out during the year amounted to EUR 1,146.4 million – a considerable increase of EUR 332.3 million compared with the previous year (beginning of 2006: EUR 814.1 million). The backlog contains definite orders to an amount of EUR 757.5 million (beginning of 2006: EUR 514.1 million) and probable orders EUR 388.9 million (beginning of 2006: EUR 300.0 million). The part related to definite orders has slightly increased to 66% (beginning 2006: 63%). The backlog calculation is based on end of year exchange rates and, despite the US dollar exchange rate dropping from EUR 0.85 to EUR 0.76 for 1 USD, the backlog in EUR was 41% higher than in 2006. Had the US dollar exchange rate remained the same the backlog would have increased by 48% compared with the beginning of 2006. The growth of the backlog is partly due to orders received in an earlier stage than historically has been the case and the increased size of projects.

Financial targets and strategy

Given the current market conditions, Fugro's objective for the coming period is to at least maintain a net profit margin of around 10%. It is anticipated that the organic revenue growth will then be higher than the average of around 7% achieved over the past five years.

Fugro will also continue its policy to expand and broaden its activities through acquisitions.

Prospects

The prospects for suppliers to the oil and gas industry remain positive for the coming period. Fugro is well equipped to respond to the worldwide demand from clients in this sector. Fugro will make further substantial investments in 2007, using its own means, to cope with this.

According to external reports, the oil and gas industry's investments will continue to increase in 2007. A major portion of these investments will end up with the suppliers, such as seismic and survey companies and integrated services providers like Fugro. Our extra investments of 2006 and the (programmed) fleet expansion take this into account. The positive effects of these investments will become apparent starting 2007. Good developments are expected for deep water projects in the Gulf of Mexico, West Africa and Brazil. Good capacity utilisation is also foreseen in the Middle East, on the North Sea and in Asia.

Fugro will also profit from its focus on improving the productivity of (existing) oil and gas sources.

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The company is in a good position to expand its activities in large-scale infrastructure projects onshore and in coastal waters. The same applies for the mining sector, due to a continuing demand for diamonds, gold and uranium in particular.

Fugro is well positioned and the market conditions in our segments promise ample opportunities for further growth in the coming years. At the beginning of 2007 our order backlog was very good.

We remain focused on a strong organic revenue growth, supplemented with growth through strategic acquisitions and on maintaining and where possible, improving the profit margin.

Based on the above the Board of Management has confidence in Fugro's future. Under the present market conditions we expect a continuing growth of the revenue and the result in the coming year, whereby we have the objective to at least maintain a net profit margin of around 10%.

Due to the short-term character of some of our projects, as in previous years we will not be able to give a forecast for the entire year until August when the 2007 half-yearly report is published.

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Market developments

The oil and gas market

Oil and gas related activities accounted for 75% of Fugro's revenue (2005: 71%). In 2006 the investments of the oil and gas industry rose substantially once again to 25 to 30%. This was the case throughout the sector for both international and national companies. This made a major contribution towards the increased revenue and profit of suppliers to this sector, such as Fugro. The depletion of existing fields, the postponement of investments in previous years and the world's rising energy requirements have spurred the oil and gas industry into major investments in new (deepwater) fields as a means to continue meeting the demand in the coming years. According to recent external market research, in 2007 the oil and gas companies' (US dollar) investments will rise by approximately 9%.

Fugro, with its broad package of related services is involved throughout virtually the entire life-cycle of oil and gas fields, which means over a period of 20 to 30 years. This involvement starts in the exploration phase and continues through the design and construction phase of the structures needed to put a new field into production or improve production from existing fields and the abandonment thereof. Fugro will, therefore, be able to continue profiting from the oil and gas companies' increased investments for a long time. That is the reason why Fugro's response to the oil and gas companies' increased activity is the significant capacity expansion started in 2006 and a broadening of its range of services. Many of the exploration and development activities, especially those related to deepwater projects, take place in the Gulf of Mexico, West Africa and Brazil. The Middle East, the Caspian Sea, the North Sea and parts of Asia, India and Australia are also very active regions. There is also more interest in detailed knowledge of reservoirs to maintain production levels from existing fields for as long as possible and to extract the maximum possible percentage of the available oil and gas.

Gas is a strong growth market, worldwide. Some of this demand is met through liquified natural gas (LNG). Growing numbers of LNG terminals are being developed, for which Fugro provides services in various parts of the world. The high energy prices are making the development of gas fields located at some distance from the user markets more attractive. This is especially applicable in the Middle East where there are considerable gas reserves within transportation distance of India, China and Japan. Further large-scale developments are also taking place in countries that have been exporting gas for some time, such as Australia, Nigeria and Indonesia. The use of LNG also makes it easier for the users to comply with the Kyoto Agreement. This will reinforce the trend towards the creation of a global gas market and could result in gas remaining more attractive than alternative energy sources.

Global economic growth (demand side) and a relatively limited production and distributions capacity that cannot be increased quickly (supply side) means that oil prices remained high throughout the year. The average price of a barrel of Brent in 2006 was USD 65.51 (2005: USD 56.70). The general consensus of opinion is that oil prices will remain at the level of the last two years. Various publications have indicated that oil companies are basing their investment viability calculations for large-projects on an oil price that is well below the current price level. Considering the duration of projects, Fugro anticipates that its services will continue to be in high demand in 2007 and the following years.

The market for infrastructure projects

Infrastructure related activities, which are very regional in character, account for around 19% of Fugro's activities (2005: 21%). The scale of these activities showed a further improvement in

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2006 thanks to gradually stronger economies in a number of regions, which stimulated building-related investments. In recent years revenue from this type of activity has been somewhat lower than in the past, due to the good growth opportunities in the oil and gas industry. Fugro's revenue from the construction and infrastructure related activities increases structurally. Fugro carries out large orders associated with airports, land reclamation, (LNG) harbour expansions, dikes and levees, tunnels and large buildings all over the world. This is another segment in which, over the years, Fugro has steadily and continuously strengthened its market position. One reason for this is that clients prefer to hand over the responsibility for a wider range of project-related survey activities to a single supplier. Thanks to its unique combination of activities, specialists, equipment and technologies, plus its scale and leading market position, Fugro can benefit from this development. The clustering of activities is particularly noticeable on large infrastructure projects in coastal waters.

Mining

The mining related activities accounted for around 6% of revenue (2005: 6%). The high price of minerals led to a substantial increase in exploration-related investment from mining companies. The extra investment in this sector resulted in more demand for the necessary data and in this sector too Fugro saw an increased demand for projects in 2006. In addition to carrying out surveys directly for the mining companies, Fugro also carries out a significant number of projects in developing countries on behalf of the World Bank and for the European Union.

Divisions

Geotechnical services	2006	2005
Revenue	371	304
Result from operating activities (EBIT)	58	46
Invested capital	240	175
Depreciation of tangible fixed assets	14	10
Result from operating activities (EBIT) as % of revenue	16	15

Onshore geotechnical services

In 2006, the key ingredients which are important for Fugro's future growth were regional geographic expansion, global growth of its near shore market, and a stronger involvement in the development of large infrastructure projects. The company's size, together with the worldwide exchange of knowledge across all disciplines, has helped Fugro to secure a strong and unique position in these markets.

The recovery of the European activities continued and Central Europe is considered a growth market.

In the United Kingdom Seacore Ltd was acquired. The company is active in the international oil, gas, mineral and sustainable energy market and is providing geotechnical investigation and scientific coring services in offshore and coastal areas utilising its own equipment, which are designed in-house.

In the United States, business developed extremely well due to larger projects related to work in the aftermath of hurricanes Katrina and Rita. At the end of 2006, federal funding was made available for geotechnical surveys relating to the rebuilding of New Orleans.

In the Middle East, the volume of work remained high. Thanks, in part, to income from the oil and gas sector, many infrastructure projects were developed both onshore and for artificial islands off the coast of the United Arab Emirates. The basis for further growth was also strengthened in India, where substantial investments are being made to improve the infrastructure.

In the Far East, the level of activities in Hong Kong slightly increased. Fugro's local presence

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provides an excellent basis for the further expansion of the activities in China, with soil surveys in China's coastal waters being seen as a growth market.

Offshore geotechnical services

Fugro has a leading position in Offshore Geotechnical services, thanks to its worldwide presence and specialty equipment. This together with Fugro's considerable technical expertise often plays a key role in the award of contracts. This leading position coupled with the excellent market conditions led to a very good utilisation.

Thanks to good logistical planning of resources, a large number of projects was carried out both in deepwater in South-East Asia, Australia, West Africa and Brazil and in shallow water in the Middle East, the Gulf of Mexico, the North Sea and South-East Asia. The increasing trend towards more complex deepwater projects is the key to the development of new oil and gas fields. Due to the high oil prices, there is also a growing interest in smaller scale new projects in shallow water. Fugro's services here are focussed on the independent companies and are related to the development of smaller fields and optimisation of production from oil fields late in their life cycle.

During 2006 selective investments were made in technology and equipment that has resulted in our vessels being better equipped for the more demanding deep-water projects. The Fugro Explorer set a new geotechnical depth record when it used drilling techniques to collect seabed samples in 3,000-meter water depths in the Gulf of Mexico. In 2006, Fugro also participated in deep-water surveys for determining the presence of gas hydrates offshore of Malaysia and India. These are not only potential new energy sources, but the knowledge gained will be useful when offering consulting engineering advice concerning the impact of hydrates on the safety of drilling or production of oil or gas in deep-water. Hydrate areas can be located between the sea bed and the underlying oil and gas reservoirs.

Survey services	2006	2005
Revenue	709	565
Result from operating activities (EBIT)	146	97
Invested capital	278	222
Depreciation of tangible fixed assets	29	25
Result from operating activities (EBIT) as % of revenue	21	17

Offshore survey

Fugro looks back on an excellent year with this business line in which it also extended its leading position, thanks in part to a substantial increase in investments by the oil and gas industry.

Offshore survey provides a range of specialized services in positioning, construction support, geophysical surveying, metocean and oceanographic studies, for which vessels, ROV (Remotely Operated Vehicle) and AUV (Autonomous Underwater Vehicle) services were deployed. These were in high demand for exploration and development of reservoirs by oil and gas companies and service companies. In 2006 Fugro further benefited from the considerable demand for survey support for remedial work related to hurricane damage in late 2005 in the Gulf of Mexico.

Meeting the high demand, significant investments were made in ROVs and AUVs. Following the acquisition of Rovtech Ltd, Fugro's ROV fleet expanded to ninety units with a further twenty work class vehicles planned for delivery during 2007. With the increase in deep water field developments, there is a growing need for precise and detailed seafloor and substrata mapping. Fugro's AUV technology is being used to carry out surveys around the globe. At the end of the year, the company had two systems in operation. A further two AUVs will become available in

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the first quarter of 2007.

In the non oil and gas sector there is a considerable global demand for bathymetric charting using both conventional and airborne laser technology.

During 2006, further steps were taken to expand Fugro's position outside the oil and gas market. To this end Fugro acquired OASE Survey and Engineering in Germany, a company specialising in governmental coastal survey projects and projects for United Nations Convention Law of the Seas (UNCLOS) and Exclusive Economic Zone (EEZ) mapping.

Onshore survey

The onshore survey activities achieved good growth in 2006.

In the Middle East a considerable amount of work was carried out for infrastructure-related projects.

In both Australia and the USA there was market growth compared to 2005.

In Canada there was a moderate slowdown in growth due to a somewhat reticent attitude of clients in the gas sector.

The market situation in the Netherlands was better than in the previous year.

In 2006 an improved laser mapping system method of laser measuring was introduced, which also found applications for the oil and gas industry.

Positioning

In 2006, increasing revenue was one indicator of the improvement in Fugro's position in the market for sub-decimetre accuracy positioning services.

The growing availability of receivers from third parties resulted in a substantial increase in sales of OmniSTAR-HP (high-precision) subscriptions in the United States, Australia and Europe, particularly in the agriculture sector. The revenue of offshore Dynamic Positioning activities also continued to grow.

There is a growing need for the high accuracy and reliability provided by Fugro's systems.

Fugro is a leader in the market for high-accuracy positioning and focuses on the professional user.

Geoscience services	2006	2005
Revenue	354	292
Result from operating activities (EBIT)	66	44
Invested capital	286	180
Depreciation of tangible fixed assets	17	18
Result from operating activities (EBIT) as % of revenue	19	15

Development & Production

Development & Production offers a broad spectrum of related services worldwide and occupies a strong position in the field of offshore seismic surveys and as a supplier of non-exclusive multi-client data. It also provides high-value geophysical, geological and reservoir data processing and interpretation services aimed at improving knowledge regarding (potential) oil and gas reservoirs.

In 2006 the activities prospered. Since the end of 2005 there has been a concerted drive to build up a modern fleet for offshore seismic surveys. Thanks to the expansions completed and already committed to, in 2006 further modernisation of the fleet was achieved. By mid 2007 Fugro will have a fleet of seven seismic vessels at its disposal for the longer term. During 2008 yet another new vessel will be added to the fleet. In addition, to maintain flexibility two or three extra vessels have been chartered on a short-term basis. This way Fugro can operate in the

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worldwide seismic market with the desired fleet size of eight to ten vessels.

In 2006 the oil and gas industry showed a far greater willingness to invest in exploration activities. The continuing decline in production from existing oil fields (depletion effect), the increasing demand for oil and gas and the persisting relatively high oil and gas prices mean this trend is expected to continue. In the year under review this resulted in an increase of seismic surveys and higher sales of multi-client geological and surveys data.

The current organisation is enabling greater benefits to be reaped from cooperation and synergy between the various Fugro units. This is improving the flexibility and position still further. Fugro, with its modern seismic fleet, has developed into a 'global player' that is on the short list of almost all the large oil and gas companies. This underlines the importance of expanding the own fleet of modern vessels equipped with the latest technology and complying with the most stringent safety regulations.

Parallel to the developments mentioned above there was also considerable investment in the processing and interpretation of seismic and geological data and the integration of seismic, geological and reservoir data for accurate mapping of oil and gas reservoirs. In 2006 this sector once again achieved good growth, partly thanks to further international expansion. This growth is not only due to an increasing demand for data but also the result of the growing interest in reservoir modelling. In this sector Fugro plays an important role worldwide in terms of both technology and expertise.

The Data Solutions activities (data management, storage and processing) – a fast-growing market for oil and gas companies – also developed well in 2006. Further expansion of these activities took place in Europe, Asia, United States and Canada.

Airborne survey

Airborne survey services have traditionally been used mainly by clients in the mining industry. The oil and gas sector also made increasingly use of Airborne survey methods and techniques to search out and map new fields. In 2006 the Airborne survey activities' revenues increased yet again.

Global economic expansion meant the need for base metals, precious minerals and oil and gas remained high and this was reflected in the high level of activities related to the search for natural resources.

The search for alternative energy sources has led to the search for uranium being stepped-up in Canada and Australia.

Governments consider the depletion of minerals and fossil fuels to be of strategic economic importance. As a result, in 2006 they became more active and ordered geophysical surveys that could stimulate exploration activities. The same applies in the (African) developing countries where the World Bank, the EU and the African Development Bank have financed regional surveys.

In 2006, Fugro responded to the positive market developments by continuing its programme of aircraft fleet renewal.

Fugro also invested further in technological developments. This resulted in the commercial launch of a new type of deep-penetration electromagnetic system that can be carried in a helicopter to gain a better understanding of geological structures. These technologies and systems are particularly interesting when it comes to surveys in remote areas where airfields are scare or non-existent.

In 2006 work continued on improvement to the so-called 'Georanger I', a UAV (Unmanned Airborne Vehicle). This unmanned aircraft follows a pre-programmed route and/or is remotely

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controlled to take measurements from the air.

At 10.30 hours, Fugro will host a press conference (in Dutch) to explain the annual results of 2006. This press conference will be webcast (www.fugro.com). At 13.00 hours the analysts' meeting (in English) will start. This meeting will also be webcast on www.fugro.com. A digital version of the Annual Report 2006 is available on the website.

For further information: Fugro N.V. K.S. Wester, President and CEO Telephone +31 70 311 11 12

Fugro collects, processes and interprets data related to the earth's surface and soil composition and provides advice based on the results. As an extension to these activities, Fugro provides services such as precise positioning, construction materials testing, reservoir engineering and data management. Fugro's operations have been organized into three divisions: Geotechnical, Survey and Geoscience.

Fugro is listed on Euronext N.V. in Amsterdam and is included in the Amsterdam Midkap Index. Fugro has over 275 offices, approximately 10,000 staff and a permanent presence in over 50 countries.

Cautionary Statement regarding Forward-Looking Statements

This announcement may contain forward-looking statements. Forward-looking statements are statements that are not historical facts, including (but not limited to) statements expressing or implying Fugro N.V.'s beliefs, expectations, intentions, forecasts, estimates or predictions (and the assumptions underlying them).

Forward-looking statements necessarily involve risks and uncertainties. The actual future results and situations may therefore differ materially from those expressed or implied in any forward-looking statements. Such differences may be caused by various factors (including, but not limited to, developments in the oil and gas industry and related markets, currency risks and unexpected operational setbacks).

Any forward-looking statements contained in this announcement are based on information currently available to Fugro N.V.'s management. Fugro N.V. assumes no obligation to in each case make a public announcement if there are changes in that information or if there are otherwise changes or developments in respect of the forward-looking statements in this announcement.

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Consolidated income statement

For the year ended 31 December (EUR x 1,000)

	2006	2005
Revenue	1,434,319	1,160,615
Third party costs	(503,096)	(405,701)
Net revenue own services	931,223	754,914
Other income	13,052	9,661
Personnel expenses	(426,636)	(361,002)
Depreciation	(78,169)	(69,445)
Amortisation of intangible assets	(6,212)	(5,318)
Other expenses	(221,691)	(184,740)
Result from operating activities (EBIT)	211,567	144,070
Finance income	2,393	718
Finance expenses	(28,839)	(16,953)
Net finance costs	(26,446)	(16,235)
Share of profit of equity accounted investees	1	240
Profit before income tax	185,122	128,075
Income tax expense	(43,373)	(26,745)
Profit for the period	141,749	101,330
Attributable to:
Equity holders of the Company	141,011	99,412
Minority interest	738	1,918
Profit for the period	141,749	101,330
Basic earnings per share (EUR)	2.05	1.51
Diluted earnings per share (EUR)	1.91	1.40

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PRESS RELEASE

TUGRO

As at 31 December (EUR x 1,000)

Consolidated balance sheet

	2006	2005
Assets
Property, plant and equipment	412,232	262,759
Intangible assets	368,881	310,270
Investments in equity accounted investees	1,853	1,780
Other investments	3,498	3,232
Deferred tax assets	23,531	21,512
Total non-current assets	809,995	599,553
Inventories	47,403	61,949
Trade and other receivables	472,605	400,354
Income tax receivables	4,647	1,912
Cash and cash equivalents	71,048	74,892
Total current assets	595,703	539,107
Total assets	1,405,698	1,138,660
Equity
Share capital	3,479	3,441
Share premium	301,539	301,539
Reserves	116,388	61,068
Unappropriated result	141,011	99,412
Total equity attributable to equity holders of the parent	562,417	465,460
Minority interest	3,364	5,326
Total equity	565,781	470,786
Liabilities
Loans and borrowings	341,997	300,753
Employee benefits	38,745	47,155
Provisions	13,888	398
Deferred tax liabilities	357	2,946
Total non-current liabilities	394,987	351,252
Bank overdraft	42,879	35,430
Loans and borrowings	57,010	1,122
Trade and other payables	285,758	248,096
Provisions	-	1,047
Other taxes and social security charges	23,782	17,951
Income tax payable	35,501	12,976
Total current liabilities	444,930	316,622
Total liabilities	839,917	667,874
Total equity and liabilities	1,405,698	1,138,660

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PRESS RELEASE

TUGRO

Geotechnical services

(EUR x million)	2006	2005	2004
Revenue Onshore Geotechnics	223	172	162
Revenue Offhore Geotechnics	148	132	111
Total	371	304	273
Result from operating activities (EBIT)	58	46	40
In % of revenue	16	15	15
In % invested capital	24	26	21
Depreciation of tangible fixed assets	14	10	10
Invested capital	240	175	188
Average US dollar rate	€0.79	€ 0.81	€ 0.81
Backlog	Jan 07	Jan 06	Jan 05
Definite orders	143.1	113.9	87.7
Probable orders	102.3	52.6	49.0
Total backlog	245.4	166.5	136.7
US Dollar rate per 1 January	€ 0.76	€ 0.85	€ 0.73

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PRESS RELEASE

TUGRO

Survey services

(EUR x million)	2006	2005	2004
Revenue Offshore survey	624	490	401
Revenue Onshore survey	56	49	45
Revenue positioning	29	26	24
Total	709	565	470
Result from operating activities (EBIT)	146	97	71
In % of revenue	21	17	15
In % invested capital	52	44	40
Depreciation of tangible fixed assets	29	25	29
Invested capital	278	222	179
Average US dollar rate	€ 0.79	€ 0.81	€ 0.81
Backlog	Jan 07	Jan 06	Jan 05
Definite orders	300.5	237.5	157.3
Probable orders	243.5	191.6	138.1
Total backlog	544.0	429.1	295.4
US Dollar rate per 1 January	€ 0.76	€ 0.85	€ 0.73

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PRESS RELEASE

TUGRO

Geoscience services

(EUR x million)	2006	2005	2004
Revenue Development & Production	268	216	205
Revenue Airborne survey	86	76	60
Total	354	292	265
Result from operating activities (EBIT)	66	44	37
In % of revenue	19	15	14
In % invested capital	23	24	23
Depreciation of tangible fixed assets	17	18	16
Invested capital	286	180	159
Average US dollar rate	€ 0.79	€ 0.81	€ 0.81
Backlog	Jan 07	Jan 06	Jan 05
Definite orders	313.9	162.7	97.2
Probable orders	43.1	55.8	59.9
Total backlog	357.0	218.5	157.1
US Dollar rate per 1 January	€ 0.76	€ 0.85	€ 0.73