Davie Yards Inc.
TSX : DAV
TSX : DAV.WT

Davie Yards Inc.

December 17, 2008 11:43 ET

Davie Receives Support from the Government of Canada

LEVIS, QUEBEC and OSLO, NORWAY--(Marketwire - Dec. 17, 2008) - Davie Yards Inc. ("Davie" or the "Company") (TSX:DAV) received support from the Government of Canada today. The Honourable Stockwell Day, Minister of International Trade, authorized Export Development Canada (EDC) to make available up to $380 million in financing and guarantees for the company.

"We are very pleased with today's announcement from the Canadian government. This funding is the catalyst for us to complete our refinancing plan. We are pleased that Minister Day approved our entire building program, which includes all five ships in our backlog," explained Steinar Kulen, Davie's chief executive officer.

"This is good news for our 1,100 employees, who we had to temporarily lay off this week, and for our clients who will get the refund guarantees requested by their banks," added Mr. Kulen.

This support will be conditional on EDC and Davie Yards reaching an agreement on the terms and conditions. The Company will start work immediately on the paperwork that needs to be prepared to be able to reopen the shipyard as soon as possible, which is subject to completion of all aspects of the refinancing plan.

The Davie CEO added, "We are delighted with the Minister's recognition of the importance of the shipbuilding industry in Canada, where there is growing potential in offshore oil and gas, and where the Canadian government has specific arctic and defense maritime needs. With these guarantees, Canada is establishing a competitive financing scheme for the Canadian shipbuilding industry."

Davie is also pleased that the government is committed to procuring, repairing and refitting vessels in Canada, according to its Buy Canada policy. "We work hard to be competitive, and with the financing tools in place, we will be there for their projects," concluded Mr. Kulen.

About Davie Yards Inc.

Davie Yards Inc. owns and operates the Davie yard in Quebec. With over 180 years of operating experience and 1,100 employees, the shipyard is the largest in Canada and among the largest and most sophisticated in North America. The company has a primary focus on complex offshore oil services vessels as well as the Canadian naval and arctic maritime needs. Its shares are traded on the Toronto Stock Exchange (DAV). News and information are available at www.davie.ca.

Forward-Looking Statements

This news release contains forward-looking information within the meaning of applicable Canadian securities legislation. These statements include those relating to statements that are not historical facts, and reflect the current intentions, plans, expectations and beliefs of Davie's management ("Management"). Such forward-looking statements reflect Management's current beliefs and are based on information currently available to Management. Forward-looking statements involve known and unknown risks, uncertainties and other factors outside Management's control. A number of factors could cause actual results of Davie to differ materially from the results predicted in the forward-looking statements, including, but not limited to, risks associated with a downturn in economic conditions, competition and sensitivity to the oil and gas industry and other factors.

Although the forward-looking statements contained herein are based upon what Management believes to be reasonable assumptions, Management cannot assure investors that actual results will be consistent with these forward-looking statements. Certain assumptions underlying the forward-looking statements contained in this news release include Management's assumptions regarding market outlook for the construction of complex offshore vessels as well as the assumptions that new vessels will be delivered on schedule and that the Company will attract and retain key personnel in key positions. These forward-looking statements are made as of the date of this release, and Management assumes no obligation to update or revise them to reflect new events or circumstances, except as required pursuant to applicable securities laws. Readers are cautioned not to place undue reliance on these forward-looking statements. For additional information with respect to certain of these and other assumptions and risks, please refer to the Company's Management's Discussion and Analysis for Q3 2008 and the year ended December 31, 2007 as well as the Annual Financial Statements for the year ended December 31, 2007, and the Company's Annual Information Form dated March 25, 2008.

Contact Information

  • HKDP Communications et affaires publiques
    Marie-Christine St-Pierre
    Consultant
    418-523-3352 ext. 231
    Cell: 418-952-0047
    mcstpierre@hkdp.qc.ca