MPF Corp., Dragados Offshore terminate MPF-01 construction contract

Offshore staff

PUERTO REAL, Spain -- The contract between MPF Corp. Ltd. and Dragados Offshore, S.A. for the construction of a multi-purpose floater vessel, the MPF-01, has been amicably and mutually terminated by both parties.

The vessel was to be designed and constructed through several contractors at various international locations, but unanticipated geographical and logistical challenges in combination with the requirements for transportation of modules, including the likely requirement for an additional dry docking, affected the project.

These unexpected events forced MPF to reorganize the project and relocate the remaining completion of theMPF-01 vessel to a closer location from the hull's fabrication site. MPF requested Dragados Offshore to accept a contract termination to enable this to take place. Dragados Offshore accepted MPF's request, and the contract has been terminated by the parties.

06/13/2008