The managements of SembCorp Industries and Keppel Corporation are holding discussions on the rationalization of the local shipyard industry and the possibility of other collaborations between the two groups.

All discussions are at a preliminary stage and may or may not come to fruition. However, these discussions are being held with the understanding that all arrangements must make business sense and create value for shareholders.

Shareholders of the two companies are therefore advised not to take any actions which may be prejudicial to their interests. Announcements will be issued publicly should there be any material developments.

By Order of the Board 
Linda Hoon Siew Kin
Group Company Secretary
SembCorp Industries Ltd
 
Caroline Chang
Company Secretary
Keppel Corporation Limited

Submitted by Linda Hoon Siew Kin, Group Company Secretary on 24/10/2001 to the SGX