Reach Subsea — M&A Activity 2014

Oct 23, 2014

3-YEAR ROV CONTRACT WITH EIDESVIK OFFSHORE

3-YEAR ROV CONTRACT WITH EIDESVIK OFFSHORE

Reach Subsea has entered into a 3-year contract with

Eidesvik Offshore for provision of ROV services on

Viking TBN, a subsea construction vessel to be

delivered from Kleven Yard in March 2015. The scope

of services from Reach Subsea include two new work

ROVs with full crewing, and is expected to yield

annual revenues of approximately NOK 40 million,

whereof NOK 10 million is guaranteed by Eidesvik.

In addition, Reach Subsea will under the agreement

with Eidesvik market the Viking TBN as a subsea

spread for own projects, thereby increasing our base

of marketable assets to 5 vessels in 2015. Also, the

Viking TBN - a large subsea vessel with length of 145

meters and a 400 tonne crane - adds diversity to our

vessel base and contributes to increasing our

addressable market.

CEO Jostein Alendal says: "This contract is

essentially a collaboration agreement where Eidesvik

contributes a state of the art large subsea vessel,

and Reach contributes first class equipment and

highly qualified subsea personnel. We believe the

combination will be a competitive alternative for our

customers, and expect to prove this through contract

awards in the near future."

For further information, please contact:

Birgitte Wendelbo Johansen, CFO: +47 99 45 12 79.