Yantai 1

6/29/2006 12:00 AM

Friede & Goldman has entered into contract withYantai Raffles Shipyard (China) on June 29, 2006for three (3) F&G designed Super M2 Jack-updrilling rigs.

On the same date, Yantai signed an agreement forF&G to provide their patented Rack Chock leg fixationsystem for the first of the newbuild jack-ups. Theadditional 2 agreements were contracted onDecember 4, 2006.

Further agreements were entered into on December 18, 2006 forF&G to provide their Jacking System for each of the mobileoffshore drilling units.

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