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United States Marine Repair – Press Releases
FOR IMMEDIATE RELEASE


Norshipco And Metro Machine Corporation Sign Teaming Agreement

Two of Norfolk's Premier Ship Repair Firms Sign Letter of Intent to Join Forces
NORFOLK, Va. – Wednesday, June 21st, 2000 – NORSHIPCO, a member of the United States Marine Repair (USMR) family of ship repair yards, and Metro Machine Corporation last week agreed to enter into a teaming arrangement, enabling the two companies to heighten the level of services provided to the United States Navy.

This partnership between NORSHIPCO and Metro Marine gives the Navy another option for obtaining low cost, high quality ship repair and modernization services. Because of the combined complementary resources of both private sector ship repair yards, large and technically complex availabilities, such as major cruiser and destroyer packages and large amphibious ship jobs, can be done at highly competitive rates.

This teaming arrangement will provide the Navy with the private sector capability and capacity in the Norfolk homeport to accomplish the large complex ship repair jobs, while simultaneously performing other scheduled Navy ship repair work. As a result, the ship crews will not have to leave Norfolk to have work performed in shipyards located outside of the ship's homeport area. This disruption to the lives of the sailors and their families greatly affects the quality of life of Navy personnel. By providing the government with an additional, geographically desirable alternative to distant repair facilities, the ships can remain in their homeport, greatly enhancing the morale of the sailors onboard the vessel.

A key advantage of the teaming agreement provides both NORSHIPCO and Metro with greater flexibility in the use of their respective facilities. This flexibility pertains especially to the more efficient scheduling and usage of the drydocks and the ability of each company to achieve specialization in the parties' areas of expertise. This will also encourage work force expansion in high skill level areas required for complex availabilities. These important advantages enable both shipyards to enhance their capabilities in order to meet the Navy's requirements to conduct such large, complex projects in the private sector at very competitive rates.

Each company will still maintain separate core capabilities, ensuring surge capacity in response to customers' needs or potential crises. By retaining the strength of the private sector industrial base, the non-nuclear repair needs of conventional Navy ships can be met.

Upon signing the agreement, B. Edward Ewing, USMR's CEO said, "We are always looking for ways to provide the "best value" for the dollar to our customers. By combining the unique strengths and capabilities of both yards and eliminating redundancies, we are able to offer cost-effective, efficient repair and modernization work. This teaming arrangement also increases competition for work on large, complex jobs, which is in the best interest of the U.S. Navy and American taxpayers. We have the utmost respect for Metro, and both of our facilities have done excellent work on the Navy's complex projects. As adjacent yards, we are looking forward to working side-by-side as a team to continue to provide these critical services to our largest customer."

The Carlyle Group, a Washington, D.C.-based private investment banking company, owns USMR, America's largest non-nuclear ship repair, modernization, conversion and overhaul company. In addition to NORSHIPCO in Norfolk, (corporate headquarters), USMR shipyards are located in San Diego, San Pedro and San Francisco, Calif. (San Francisco Drydock, Inc.), and Ingleside, Texas.

Contact:
Al Krekich (757) 494-2983