FOR IMMEDIATE RELEASE

(Hong Kong July 01, 2002) The Marshall Islands can confirm that all vessels on its ships register affected by Phase II of the International Safety Management (ISM) code were in full compliance ahead of the July 01 deadline.

Those vessels registered with the Marshall Islands that do not comply with ISM are exempt by virtue of the Safety Of Life At Sea (SOLAS) compliance definitions, are in lay-up or have been foreign bareboat charter registered in another flag-state jurisdiction.

The 2001 annual report of the Paris Memorandum of Understanding on Port State Control (Paris MOU) has put the safety records of flag states back in the spotlight once again when it showed that safety management deficiencies on vessels have risen by 150% in three years.

The Marshall Islands maritime administration is entirely committed to the Paris MOU, which has linked countries’ efforts to eradicate substandard shipping for almost 20 years. While 25 flag states are on the Paris MOU blacklist, the Marshall Islands has a safety record that stands up to scrutiny.

William Gallagher, president of International Registries Inc (IRI), the administrators of the Marshall Island’s ship register, said: “Through its marine safety initiatives, the Marshall Islands register has cultivated a prestigious vessel safety program. The Marshall Islands takes its responsibilities as a flag state seriously and insists upon a safety-conscious culture among its owners and operators. The certification of the companies and vessels required to comply with ISM by July 1, 2002 is a testament to the quality of the program and the ship owners within the flag."