Davie Yards Inc.
TSX : DAV

Davie Yards Inc.

November 14, 2008 22:40 ET

Davie Yards Inc. Releases Third Quarter 2008 Results

LEVIS, QUEBEC and OSLO, NORWAY--(Marketwire - Nov. 14, 2008) - Davie Yards Inc. ("Davie" or the "Company") (TSX:DAV) today released its financial and operating results for the nine month period ended September 30, 2008.

Financial Highlights:

Revenue for the third quarter ending September 30, 2008 was US$28.7 million and net income was US$3.3 million. Revenue for the nine months ended September 30, 2008 was US$51.4 million and net losses were recorded at US$51.5 million.

The result of the agreements announced September 23, 2008, made with the Company's clients for a US$60 million price increase on the contracts for the 5 ships, and the rest of the financing plan, will enable the company to post profits on the contracts as well as improve working capital and equity. The Company has in addition secured a loan from Investissement Quebec of CDN$10 million through their PASI program.

Future Outlook:

Despite a setback in contracting activities for new ships in all segments due to the economic turbulence and financial crises, the fundamentals in the offshore oil market remain positive, and the market outlook for complex offshore vessels and rigs for deep water operations is still strong.

"The last quarter (Q3) was as expected regarding production output, revenues and operational costs. We had a net gain of US$11 million on currency exchange, giving a net positive result for the quarter", says Steinar Kulen, the CEO of Davie and continued; "The identification of the operational issues has been addressed and an improvement plan is being implemented. We have managed to obtain short term financing to keep the operation ongoing, with support from our largest shareholder as well as our suppliers. The financing plan is well under way".

Going concern uncertainty:

As reported last quarter, the company is operating under a going concern uncertainty. The company has incurred losses from operations and cash outflow from operations together with provisions for future anticipated losses, and has a negative working capital as at September 30, 2008. The ability of the company to continue as a going concern is dependent upon finalising the financing process, which were started in August 2008.

About Davie Yards Inc.

Davie Yards Inc. owns and operates the Davie yard in Quebec. With over 180 years of operating experience and approximately 1100 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 building large and complex offshore service vessels. 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 Q2 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.

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