FastShip, Inc. Selects Philadelphia Gear Corporation as Supplier For High-Speed Trans-Atlantic Fleet / $35 Million Deal Is Philadelphia Gear's Largest and Means

PHILADELPHIA (PROTEXT) - FastShip, Inc. announced today thatit has reached an agreement with Philadelphia Gear Corporation tosupply sophisticated transmission equipment for the company'srevolutionary high- speed trans-Atlantic fleet. The $35 millionorder is the largest in Philadelphia Gear's 100-year history, andwill bring more than 100 direct and indirect jobs to the region. Under the agreement, King of Prussia, PA-based PhiladelphiaGear will supply 20 gearboxes -- five in each of FastShip'sinitial four vessels -- plus one spare gearbox and additionalparts, as well as a 10-year service and maintenance package. Thegears will help generate power for the vessels equivalent to twoand a half times that of a jumbo jet. "FastShip is thrilled to be working with Philadelphia Gear, alocal company and an industry leader in transmissionmanufacturing," said Roland K. Bullard II, president of FastShip."As a Philadelphia-based company, FastShip is proud to work witha company that exemplifies the region's historic manufacturingindustry." The contract means 100 jobs for Philadelphia Gear and itsvendors, including securing or adding 70 full-time jobs over thenext two years at Philadelphia Gear's King of Prussia facility.These are among the 7,500 to 8,000 jobs that will be created byFastShip, according to a study by PricewaterhouseCoopers, LLP.The venture will also benefit dockworkers, haulers of cargo viatrucks and trains and those who work for local firms that willprovision and repair the vessels. "Our contract with FastShip further establishes us as a globalcompetitor in the supply of high-tech power transmissionequipment," said Gerry Rooney, president of Philadelphia GearCorporation. "Our aggressive investment in new technology andequipment, as well as our efficiency guarantee, positions usperfectly to thoroughly serve FastShip's cutting-edgetransmission needs." Under the agreement, Philadelphia Gear will also participatein vendor financing of FastShip, which intends to complete itstotal financing package by the end of 1999. The gearboxes supplied by Philadelphia Gear will link the fiveRolls-Royce marine Trent engines to the Kamewa water jets. Therevolutionary system delivers a total of 250 megawatts, or335,000 horsepower. This propulsion package will enable the 860-foot vessels, carrying a 10,000-ton payload, to make the passagefrom Philadelphia to Cherbourg in less than four days, and tosustain speeds of up to 40 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 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. 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. Financing for the business,which is due to be completed later this year, will includesignificant support from MARAD (U.S. Maritime Administration)Title XI Guarantee Program, financing from major equipmentsuppliers (including Rolls-Royce), local authorities in bothPhiladelphia and Cherbourg for terminals, and equity funding fromfinancial markets. FastShip is drawing upon the expertise of shipping andindustry leaders who serve as advisors to the company. TheFastShip management team now includes a who's who oftransportation and logistics expertise: Donald F. Cameron, formerdirector of Corporate Logistics of International Trade Policiesfor the Bose Corporation; Christopher Rankin, former presidentand chief executive officer of P&O/Nedlloyd; sales and marketingconsultant David Grant, formerly of P&O/Nedlloyd; John ThompsonNewton, also a former P&O/Nedlloyd executive with expertise in afull range of transportation services including ships, containersand terminals; and Dick Steiner, who has held key managementpositions in domestic and international land, air and seatransportation, including CSX Corporation, Emery Air Freight,Conrail, and Flying Tiger Line. 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. Philadelphia Gear Corporation, based in King of Prussia, PA,is a subsidiary of American Manufacturing Corporation. Withlocations in Los Angeles, CA; Houston, TX; Newport, DE; andChicago, IL, Philadelphia Gear Corporation has been a supplier ofpower transmission equipment for more than a century. otsOriginal Text Service: FastShip, Inc. Internet:http://www.newsaktuell.de Contact: Eric Hollreiser of TheTierney Group, 215-732-4100, for FastShip

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