Philly Shipyard — Regulatory Filings 2021

Feb 9, 2021

Philly Shipyard Wins Contract for U.S. Navy Cable Ship Design Study

Philly Shipyard Wins Contract for U.S. Navy Cable Ship Design Study

Philly Shipyard, Inc. (http://www.phillyshipyard.com/), the sole operating

subsidiary of Philly Shipyard ASA (OSE: PHLY), has been awarded a contract to

participate in an industry study for the development and design of the U.S. Navy

Cable Ship T-ARC(X) Program - a replacement for the Navy's only undersea cable

installation and repair ship, USNS ZEUS (T-ARC 7). The ship's primary mission

will be to transport, install, retrieve, and repair undersea cables and

equipment, with many additional capabilities including ocean surveys and

deployment of unmanned underwater vehicles (UUVs).

"We look forward to adding this industry study to our portfolio of government

projects at Philly Shipyard," said Steinar Nerbovik, President and CEO, Philly

Shipyard.  "Our design team will develop a modern design benefitting the U.S.

Navy in its many subsea operations."

In accordance with U.S. Navy specifications, Philly Shipyard will perform

capability and cost trade studies in key areas, investigate options to maximize

affordability and producibility, and develop concept designs. The industry

studies - the precursor for the future detail design and construction (DD&C)

contract - will take approximately 12 months. A request for quotation for the

DD&C contract is anticipated upon completion of the industry studies.

Philly Shipyard partnered with Vard Marine, Inc. as the ship design team on this

program. Vard Marine will leverage their parent company, VARD Group AS, for

their extensive cable layer portfolio. The VARD Group's vast experience in cable

laying vessel design and construction will be drawn upon to support these

industry studies that will provide a modern solution for the U.S. Navy.

"This is another exciting opportunity for Vard Marine to collaborate on industry

studies with Philly Shipyard. The recent CHAMP program has built an effective

working relationship between our two companies and we see great potential in

providing the U.S. Navy with value and quality design services," said Wade

Carson, CEO of Vard Marine.

Per the contract stipulations, Philly Shipyard has selected VARD Electro, MAATS,

and Noise Control Engineering, LLC as consultants on the project.

Philly Shipyard is now participating in industry studies for four U.S.

government shipbuilding programs, including the T-ARC(X) program. The other

three industry studies support the U.S. Navy's Common Hull Auxiliary Multi-

Mission Platform (CHAMP) program (http://www.phillyshipyard.com/s.cfm/2-

38_88/Philly-Shipyard-and-Vard-Marine-Team-Win-Contract-for-CHAMP-Design-Study),

the U.S. Coast Guard's Offshore Patrol Cutter (OPC) program, and the U.S. Navy's

T-AGOS(X) program (http://www.phillyshipyard.com/s.cfm/2-38_99/Philly-Shipyard-

Will-Participate-in-the-US-Navy-T-AGOS-Industry-Studies).

About Philly Shipyard

Philly Shipyard, Inc. (PSI) is a leading U.S. shipbuilder that is presently

pursuing a mix of commercial and government work. It possesses a state-of-the-

art shipbuilding facility and has earned a reputation as a preferred provider of

oceangoing merchant vessels with a track record of delivering quality ships,

having delivered around 50% of all large ocean-going Jones Act commercial ships

since 2000. PSI is the sole operating subsidiary of Philly Shipyard ASA. Philly

Shipyard ASA is listed on the Oslo Stock Exchange (OSE: PHLY) and is majority-

owned by Aker Capital AS, which in turn is wholly-owned by Aker ASA (Aker). Aker

is an industrial investment company that exercises active ownership to create

value. Aker has ownership interests in oil and gas, renewable energy and green

technologies, maritime assets, marine biotechnology and industrial software, and

its portfolio includes companies like Aker BP, Aker Horizons, Aker BioMarine,

Cognite, Aker Solutions and Ocean Yield.

For more information about Philly Shipyard, please visit www.phillyshipyard.com

(http://www.phillyshipyard.com).

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act