"K" Line Invests in Business of Offshore Support Vessels.

Tokyo, Japan, Nov 2, 2007 - (JCN Newswire) - Kawasaki Kisen Kaisha, Ltd. (TSE: 9107) announced today that "K" Line will further invest in the business of Offshore Support Vessels, where continuous strong growth is expected in active oil and gas exploration and development that is now moving more and more into deeper waters following the higher energy prices in recent years.

"K" Line's investment will be through a partnership with C. H. Sorensen Management AS (hereafter CHSM) in Norway. "K" Line and CHSM jointly founded a shipowning/operating company, K LINE OFFSHORE AS in Norway, which has ordered two Large-sized Anchor Handling Tug and Supply Vessels (AHTS)[1] and four Large-sized Platform Supply Vessels (PSV)[2] from internationally-respected shipyard, Aker Yards AS[3] in Norway.

The building supervision and technical management for those offshore vessels are entrusted to OSM Group (hereafter OSM) in Norway, who is ripe in experience in Offshore Vessel operations and management for more than a decade, maintaining its position as the world's leading independent ship management company in this business field, having more than 100 offshore ships on-hand including newbuildings to be delivered in the near future.

With these state-of-the-art Large-sized vessels and OSM's experienced technical support, "K" Line and CHSM can offer customers more reliable and competitive service by combining their respective skills, financial strengths, extensive shipping experiences, worldwide network and so forth.

"K" Line is seeking additional enhancement of its worldwide business activities, including further developments in the shipping field, especially in Europe, expecting to enjoy the synergy from another joint venture that started in April 2007 in the field of heavy lift shipping with the highly-respected German-based SAL Group.

Outline of shipbuilding contracts

Anchor Handling Tug and Supply Vessels (AHTS)

Shipyard:       Aker Yards AS, Norway
Delivery:       December 2010 and April 2011 (2 vessels)
Vessel Spec:    Ship's design : Aker AHT 12 LOA 95m, Beam 24m,
(estimated)     Depth 9.8m, Speed 17 Knots, DWT 4,800t, Accommodation
                70 persons DPS (Dynamic Positioning Systems-2)[4] etc.

PlatformSupply Vessels (PSV)

Shipyard:       Aker Yards AS, Norway
Delivery:       Oct 2010 and Jan/April/July 2011 (4 vessels)
Vessel Spec:    Ship's design : Aker PSV 06 CD LOA 95m, Beam 20m,
(estimated)     Depth 8m, Speed 16 Knots, DWT 5,100t, Accommodation
                25 persons, DPS (Dynamic Positioning Systems-2)[4]) etc.

[1] AHTS is a dual-purpose tug designed for transport of cargo in addition to anchor handling and towing duties of floating rigs (Jack Ups, Semi Submersibles, etc.)

[2] PSV is used for transport of cargo (Fuel, Food, Water, Dry-Bulk, Explosives, etc.) to and from offshore installations.

[3] Founded in 1841 with headquarters based in Oslo, Norway, the Europe's largest shipbuilding company with total of 18 shipyards in European countries, Brazil and Vietnam, having three business departments: Cruise & Ferries, Merchant Vessels and Offshore & Specialized Vessels, well respected for high quality shipbuilding.

[4] DPS is designed to counteract the constantly varying forces incidental to wind, waves and current upon the vessel in such manner that it will either maintain a specified position and heading, or move along a desired track. This can be achieved by either centralized manual control of the vessel's thrusters or by automatic response to the variations of the environmental conditions.

About Kawasaki Kisen Kaisha Ltd.

Kawasaki Kisen Kaisha Ltd. ("K" LINE) was established in April 1919. Containership services has had the distinction of being the centerpiece of "K" LINE's global sea transportation services. Providing stable and reliable service, this business has been developing and expanding with the present global network offering coverage around the world. By keeping abreast of changing business circumstances and in order to meet customer's requirements, we are also constantly reinforcing our company's international competitiveness. For more information, please visit http://www.kline.co.jp/index_e.html.

Source: Kawasaki Kisen Kaisha Ltd.

Contact:

Kawasaki Kisen Kaisha, Ltd. ("K" Line)
Masato Yamaguchi,
General Manager, IR & PR Group
Tel: [phone]
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Atsushi Takayama,
Manager, Information & Public Relations Team,
IR & PR Group
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