Abu Dhabi, June 21, 2007(WAM): Abu Dhabi Ship Building(ADSB) has reached another major milestone in the Baynunah CorvetteProgram for the UAE Navy. On Tuesday,ADSB laid the keel blockfor the third of a six-ship program and initiated the first steelcutting for the fourth ship.

Rear Admiral Ahmed Al Sabab Al Tenaiji, Commander ofthe UAE Naval Forces, who presided over the keel laying ceremonyon Tuesday, said: "I am very pleased to see the progress thatis being made on the Baynunah program here in Abu Dhabi ShipBuilding. It is indeed a proud occasion for the UAE." He added: "Today I also press the button to commenceSteel Cutting for the fourth ship in the program. This furtherenhances the progress that Abu Dhabi Ship Building is makingon this prestigious project and I wish them every success." The first ship is under construction in Cherbourg,France at the shipyard of ADSB's subcontractor, ConstructionMecaniques de Normandie (CMN). The hull structure and superstructureare in place and outfitting is in process.

The second ship construction at ADSB's Massafah shipyardfacility in Abu Dhabi has now reached main deck level for theplatform and work on the aluminum superstructure and top sidemodule has commenced.

William Saltzer, ADSB's CEO said: "With three vesselsall taking shape, the fourth starting manufacture and major equipmentbeing produced by companies from around the world starting tobe delivered and installed, the Baynunah program is running inhigh gear." The keel laying consists of placing the first constructionblock in position in the Ship Assembly Hall. The first hull blockcontaining machinery and engineering spaces for the vessel'smechanical systems, weighs 66 tonnes and is 23.7 metres in length- the overall length of the vessel is 72 metres.

To cope with the volume of work now the Baynunah programis in full swing, ADSB's shipyard is undergoing an expansionwhich is progressing to plan and will be completed by the endof this year. Expansion of the Steel Production Shop, extensionof the Assembly Halls and additional Warehousing are all nowvery visible within the shipyard.

The Baynunah Class vessels are highly sophisticatedNaval Corvettes designed by CMN. The French company is also actingas a main subcontractor to ADSB for construction of the firstvessel in France, technology transfer and supply of related logisticsand training services. The other five vessels are being builtat the ADSB facility in Mussafah.

ADSB is a Public Joint Stock Company (PJSC), listedon the Abu Dhabi Securities Market (ADSM). The company was setup in 1996 by the UAE Offsets Group (UOG) and has built a strongreputation for high quality construction and repair of both militaryand commercial vessels. ADSB is 10 per cent owned by the AbuDhabi Government, 40 per cent by Mubadala Development Companyand 50 per cent by more than 8,000 UAE national shareholders.