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United States Marine Repair – Press Releases
FOR IMMEDIATE RELEASE

TWO LEADING SHIP REPAIR FACILITIES JOIN FORCES

Pacific Shipyards International Inc. and Southwest Marine Sign Long-Term Agreement
to Perform Work on Navy Ships

PEARL HARBOR, Hawaii – April 22, 2002 - Pacific Shipyards, International (PSI) has teamed with Southwest Marine, Inc. (SWM), a member of the United States Marine Repair (USMR) family of shipyards, to carry out the 5-year IDIQ contract for the U.S. Navy. The primary purpose of this contract, awarded by Naval Sea Systems Command, is to accomplish Depot-Level maintenance and repair work at Pearl Harbor Naval Shipyard on surface ships home ported in Pearl Harbor. The availabilities include dry docking and pier side work.

Pacific Shipyards International, which consists of Honolulu Shipyard (HSI) and Honolulu Marine, has served the marine community since 1920.

HSI and SWM have formed an alliance called TEAM Hawaii to combine the resources and strengths of both companies to better serve the Navy. HSI is serving as the prime contractor on the IDIQ contract and is providing local production workers from the community. SWM provides program management and administrative support, as well as the purchasing of material and supply chain management. Under this arrangement, SWM is also providing access to its preferred suppliers to provide lower-cost services under the IDIQ contract.
Rep. Neil Abercrombie (D-Hawaii), a member of the House Armed Services Committee said, "TEAM Hawaii's approach combines the strengths of Pacific Shipyard International with those of Southwest Marine. It's the kind of creative partnership needed for a job like this. I'm very pleased that a Hawaii company will have a big share of the job. The bottom line is readiness for the Fleet, jobs for our workforce, and a boost for the economy."

SWM and HSI teamed together in September 2001, when the two companies submitted a joint bid to the Navy and were awarded the contract for the EDSRA work on the USS CHOSIN (CG-65). This work, currently being performed at the Pearl Harbor Naval Shipyard, began on November 7, 2001, and is scheduled to complete on June 20, 2002.

TEAM Hawaii recently completed pier side work at the Pearl Harbor Naval Shipyard on the USS LAKE ERIE (CG-70) and the USS CROMELIN (FFG-37). In addition to the USS CHOSIN, under the IDIQ, multi-year contract, TEAM Hawaii is currently working on the USS O'KANE (DDG-77). The availability on the USS RUSSELL (DDG-59) is also scheduled to start on June 12, 2002.
Bill Clifford, CEO of PSI, said "We see this partnership with Southwest Marine as an opportunity to team with a strong, experienced company, which will result in providing even better service to our customer."

USMR provides a range of services from standard topside ship repair to full dry dock services at six strategically located ship repair facilities in the ports of Norfolk, Virginia; San Diego, San Francisco and San Pedro, Calif.; Pearl Harbor, Hawaii; and Ingleside, Texas.
 
Contact:
Monty Dickinson
USMR/Southwest Marine
(619) 238-1000, ext. 2030

Bill Clifford
Pacific Shipyards International
(808) 848-6475