HUD Group Ltd of Hong Kong (HUD) and Australian Maritime Services Pty of Melbourne (AMS) are pleased to announce the signing of an agreement for HUD to acquire on private terms a 55% majority shareholding in AMS and management participation in the company.

The acquisition represents the next step in the development of AMS - which commenced operations as a new company in Melbourne in May 2002 - as a long-term provider of harbour towage services in Australia.

"In a relatively short period, having attracted a premium client base with a commitment to quality customer service, first-class modern vessels and enthusiastic management and crews, we have been impressed by the progress AMS has made in establishing a presence in the market,", said Christopher Pooley, Managing Director of HUD.

"We are very excited with the partnership and are confident that AMS will continue to build on the foundations laid, supported by HUD's expertise and experience in the industry and its financial strength," added Mr. Pooley.

Mr. James Chen, AMS' founder, and Mr. Reg Wicks, Director of the company, will continue to be involved in the operation of the company.

HUD Marine, as a leading provider of towage services, has expanded from its Hong Kong base into new areas throughout the world in recent years; with the support offered by HUD's expertise and experience in the industry and its financial strength, AMS is well placed to build on the start made so far and develop its business throughout Australasia as opportunities arise.

"The partners are very much looking forward to the challenges ahead building on the foundations laid, and to becoming accepted as a long-term member of Australia's maritime community, " Mr. Pooley concluded.

Background:

HUD Group

HUD Group, a Swire Pacific and Hutchison Whampoa venture comprises Hong Kong's largest floating dock and ship repair facilities. It was formed in 1973 by the merger of the Hong Kong & Whampoa Dock Company and Taikoo Dockyard, two companies which dominated ship repair in Hong Kong for over a century.

Hongkong Salvage & Towage (HKST) was formed in 1935 and operated as a separate company under the same parentage until merged into HUD Group in April 2000 as a division operating as HUD Marine.

HUD Marine which owns one of the youngest and most innovative tug fleets in the world with an average age of just eight years, comprising a fleet of 21 vessels plus 3 more vessels under construction, is Hong Kong's largest tug operator. In addition to its base in the world's busiest port, HUD Marine's fleet of tugs, which range from pure harbour designs, through compact sea-going types, to salvage tugs, actively seeks employment overseas, and in recent years has expanded throughout the Asia-Pacific region, to the Middle East and Caribbean on both short and long term contracts as well as harbour deployments.

Since 1986, 33 vessels have been built in Japan to the company's own innovative design specifications - all constructed to meet U.K. Department for Transport, and Hong Kong Marine Department regulations and since 1991 the requirements of Australian's Uniform Shipping Laws Code; all are classed either with Lloyd's Register or Bureau Veritas. The tugs are all reverse tractor "z-peller" type, with twin 360 degree azimuthing propulsion units controlled by a single joystick, allowing maximum manoeuvrability and efficiency.

In recent years, the company has also established a growing international reputation as a newbuilding design and project management specialist, and is active in environmental protection and harbour clean-up.

For more information on HUD Marine see website www.hktug.com

Australian Maritime Services

Established in March 2002 by Melbourne businessman James Chen, who is well known in the Australian Maritime community through his involvement in JPC Containers and Logistics Pty Ltd and Melbourne Mooring, AMS's core business is the operation of tugs and the provision of harbour towage services in Australian waters. The company has quickly built significant market share in Melbourne and Brisbane since the commencement of the business and operates four modern z-peller tugs, two with salvage and fire-fighting capability. James Chen is currently the Managing Director of AMS and 100% Shareholder. After the acquisition he will remain in that role as well as continuing to hold a 45% interest in the new venture as HUD's partner.

Reg Wicks, currently co-director of AMS will also continue along with all other existing AMS staff and crew members.

Through this partnership, now cemented with HUD, AMS plans steadily to extend its coverage to other ports and terminals throughout Australia, as demand allows.

For further information, contact : Reg Wicks, Director
Australian Maritime Services
Pier 31 South Wharf, Lorimer Street, Port Melbourne,
VIC 3207, Australia
Tel : (61) 3 9645 3688       Fax: (61) 3 9645 2311