Formally acquires Oceanfast Shipbuilding operations

Document date:  Mon 31 May 1999
Published:  Mon 31 May 1999 00:00:00
Document No:  162388
Document part:  A
Market Flag:  Y
Classification: 

HOMEX - Perth                                                         

+++++++++++++++++++++++++
AUSTAL LIMITED FORMALLY ACQUIRES OCEANFAST SHIPBUILDING OPERATIONS

Austal Limited has today announced the formal acquisition of the
shipbuilding operations of Oceanfast Limited through wholly owned
subsidiaries Oceanfast Properties Pty Limited and Oceanfast Marine
Pty Limited. Under its new ownership, the Oceanfast name will be
retained and will continue to operate as a separate entity.

Administrators, Norgard Clohessy, concluded the Deed of Company
Arrangement substantially in terms of the Heads of Agreement dated 21
February 1999. The 1 million Austal shares to be issued to Oceanfast
shareholders in terms of the Heads of Agreement will not be issued.
Instead the cash equivalent of the 1 million shares will be paid to
Oceanfast creditors by Austal.

Austal's Chairman and Managing Director, John Rothwell said he was
extremely pleased with the acquisition which will see Austal
fast-track its entrance into the booming luxury motor yacht market -
with the advantage of Oceanfast's world renowned reputation as a
leading builder of these craft, and, its highly skilled workforce.

"Whilst Oceanfast suffered from under-capitalisation and other
problems in the past, the company is nevertheless an exceptional
builder of luxury motor yachts, having crafted some of the most
outstanding vessels of their kind in the world today. An injection of
Austal's skilled management team will complement the very dedicated
and talented group who are part of Oceanfast's established
workforce," said Mr Rothwell.

"We have substantial growth plans for Oceanfast with the vision to
see it become one of the world's major suppliers of this type of
luxury craft."

Austal had planned to enter the motor yacht market, continuing its
growth strategies to diversify and expand its product base which
already includes commercial high speed vessels, cruise and tourist
vessels and developments into defence and cargo applications from its
existing high speed technology. The Oceanfast acquisition has
accelerated Austal's entrance to the huge and very lucrative luxury
vessel market.

Oceanfast have earned a reputation as one of the world's leading
manufacturers of a broad range of luxury motor yachts. Since 1983,
Oceanfast has produced around 14 of the finest and most distinctive
(and awarded) motor yachts in the world. The new Oceanfast operation
will benefit from Austal's substantial design and production
resources, enabling shorter lead times and greater productivity.

John Rothwell, CHAIRMAN, AUSTAL LIMITED
or Sonya Clarson
Tel: (08) 9410 1111, Fax: (08) 9410 2564

                                                                                                                                           1