FastShip, Inc. Selects NASSCO to Build First Generation

High-Speed Transatlantic Fleet PHILADELPHIA (PROTEXT) - FastShip, Inc. today announced thatit has signed a Memorandum of Understanding with National Steeland Shipbuilding Company (NASSCO), a subsidiary of GeneralDynamics, to build the first generation high-speed vessels thatwill make up the FastShip trans-Atlantic transportation fleet. Under the proposed agreement, NASSCO, a renowned designer andbuilder of new ships headquartered in San Diego, California, willconstruct the first four revolutionary vessels in the FastShipfleet. The agreement establishes a timeline to finalize aconstruction contract that will include definitive pricing,delivery schedule and performance guarantees. Moreover, NASSCOhas agreed to consider a financing commitment to FastShip, Inc. "NASSCO's recent extensive experience in building roll-on,roll-off vessels and their expertise in gas turbine powered shipsis especially relevant to the FastShip project," said Roland K.Bullard II, President of FastShip, Inc. "Their expertise has beenproven over the years in both commercial and militaryshipbuilding with an emphasis on quality, cost control andmeeting delivery dates. We are excited to include them as a veryimportant partner in developing the FastShip logistics network." FastShip is creating a time-definite seven-day, door-to-doorNorth Atlantic transportation network linking the middle ofEurope to the middle of the United States. The service is madepossible through use of patented technology that represents aquantum leap in hull design, propulsion systems and terminaltechnology. FastShip's high-speed vessels, proprietary loadingand unloading system, dedicated terminal, and intermodal networkwill change the entire dynamic of freight movement between Europeand the U.S. Trial operations will start in the second half of2002 with the initiation of commercial operations in early 2003. "We are excited to join FastShip as a strategic partner in thedevelopment of this revolutionary cargo container fleet andnetwork," said Richard H. Vortmann, President of NASSCO. "We lookforward to forging a long-term relationship with FastShip thatgoes beyond the first four ships and further combines ourshipbuilding expertise with the FastShip technology and patents." FastShip will be powered by five marinized aero-derivative gasturbines. Each turbine will drive one Kamewa water jet,delivering in total 250 megawatts, or 335,000 horsepower --roughly equivalent to the takeoff power of two 747s. Thispropulsion package will enable the 860-foot vessels, carrying a10,000-ton payload, to make the passage from Philadelphia toCherbourg in less than four days, and to attain speeds of up to40 knots. The hull form, coupled with the propulsion package willenable the ship to maintain those speeds even under adverseweather conditions. Once in port, the ships will be loaded andunloaded in six hours using a rail-based roll-on roll-off systemdeveloped by TTS Technology in Norway. "FastShip's partnership with NASSCO significantly propels thedevelopment of the FastShip transportation network forward byassuring the successful construction of four state-of-the-artvessels," said Einar Pedersen, Chairman and CEO of FastShip, Inc."Our partnership with NASSCO combined with many recentdevelopments are clear indications of the growing internationalsupport for FastShip, Inc. The FastShip vessels' huge productivity gains and theintermodal network will provide a substantial technological andcompetitive advantage for the U.S. Maritime industry. Thistechnological advantage is created not only by the vessel'srevolutionary hull design and propulsion system, but also byFastShip's state-of-the-art intermodal terminals, which will beunmatched by any port in the world. "It is this combination of speed, technology and assetutilization that yields substantial productivity gains," Bullardsaid. Moreover, through relatively minor modifications and costs,the FastShip vessels can be transformed into dual-use vesselsthat could be used for military sealift and pressing humanitarianmissions. With these added features, the vessels could even beused in areas with an undeveloped port infrastructure. Headquartered in Philadelphia, Pennsylvania, FastShip, Inc.will target high-value, time-sensitive goods includingelectronics, apparel and perishable items. The FastShip servicewill provide speed, reliability and frequency comparable to airfreight at a cost closer to conventional ocean shipping rates.Customers will realize benefits that are strategically essentialin improving their global competitiveness including reducedinventory investment, supply chain management efficiencies andlower logistics costs. NASSCO is a major ship design, construction and repair companylocated in San Diego, California. NASSCO is well known in theshipping industry for excellence in on-time delivery of a widevariety of ships manufactured at the highest quality standards. Ship diagram available upon request. Fastship Milestones FastShip has garnered significant support from industryleaders and organizations. In recent months:

* the Chamber of Commerce and Industry of Cherbourg-Cotentinhas entered into an agreement with FastShip to establishCherbourg, France as the exclusive European port

* PricewaterhouseCoopers published an economic impact studydetailing how the FastShip services will create almost 7,500direct and indirect jobs in Greater Philadelphia and southern NewJersey

* J.P. Morgan Securities, Inc. was enlisted to assistFastShip in raising the necessary funds for the construction ofthe vessels and to act as the company's financial advisor

* the Delaware River Port Authority (DRPA) and FastShipannounced an agreement to finance the construction of a newmarine-shipping terminal in Philadelphia at a cost of up to $74.8million (the DRPA is also an investor in the project)

* Interocean Ugland Management (IUM), owned by SaltchukResources, Inc. in Seattle, Washington and Ugland Capital Limitedof Tunbridge Wells, United Kindgdom, signed an agreement withFastShip to operate and manage its fleet between the UnitedStates and Europe

* Kamewa of Kristinehamn, Sweden, a subsidiary of Vickers,plc, announced a formal agreement with FastShip to develop andsupply water jets for the four FastShip vessels; and

* MAINCO, a subsidiary of Transnucleaire, announced anagreement to oversee FastShip's exclusive European terminal inCherbourg, France and to carry out all stevedoring services atthe French port. MAINCO will also contribute to currentfinancing in the form of project work relating to the terminaland inland distribution network. MAINCO will also underwrite thefinancing of the terminal equipment up to $60 million. otsOriginal Text Service: FastShip, Inc. Internet:http://www.newsaktuell.de Contact: Thomas C. Beck of FastShip,Inc., 215-574-1770; or Eric Hollreiser of The Tierney Group, 215-732-4100, for FastShip, Inc.

Subscribers please note that material bearing the slug"PROTEXT" is not part of CTK's news service and is not to bepublished under the "CTK" slug. Protext is a commercial serviceproviding distribution of press releases from clients, who areidentified in the text of Protext reports and who bear fullresponsibility for their contents.

PROTEXT