20 June 2024: Philly Shipyard ASA (XOAX: PHLY)("PHLY" or the "Company") has
entered into a share purchase agreement (the "SPA") with both Hanwha Systems and
Hanwha Ocean (together "Hanwha"), for the purchase of Philly Shipyard, Inc.
("PSI"), the sole operating subsidiary of PHLY (the "Transaction"). 

The Transaction will result in the Company selling all of its business against
receiving a cash consideration of USD 100 million (the "Purchase Price"),
corresponding to a value per PHLY share of NOK 87.24 (based on an USD/NOK
exchange rate of 10.5628 and 12,574,766 shares outstanding, adjusted for 466,865
treasury shares).

"After two decades of stewardship, it is with great honor that we transition the
ownership from Aker to Hanwha. Recognized as a global leader, Hanwha brings a
wealth of sophisticated shipbuilding experience that will enable Philly Shipyard
to realize a grander vision for its employees and customers. Reflecting on the
past 17 years, I am personally grateful for the opportunity to have worked side
by side with the people of Philly Shipyard and eagerly anticipate witnessing the
shipyard's continued growth and success in the future. From a financial
perspective, the combination of USD 150 million in dividends since 2014 and
sales price of USD 100 million, offers shareholders an attractive value creation
journey," said Kristian Røkke, Chairman of Philly Shipyard ASA.

The Transaction is subject to the satisfaction of certain customary conditions,
including approval by CFIUS (Committee of Foreign Investments in the US) and
other regulatory approvals being obtained as well as no material adverse event
having occurred in relation to PSI. Subject to satisfaction of all closing
conditions, the parties expect that the Transaction will close during Q4 2024.

In the event of cost overruns in excess of USD 100 million in current projects
undertaken by PSI compared to the company's current estimates, the parties have
agreed principles to reduce the payable Purchase Price at closing. Except for
certain transaction costs, the Purchase Price is not subject to any other
adjustments.

The Company's board of directors have obtained a fairness opinion from Arctic
Securities, concluding that the Transaction, from a financial perspective, is
fair to PHLY. On this basis, the Company's board of directors have approved the
Transaction.

The Company's board of directors will work on defining the Company's future
strategy and structure following completion of the Transaction, including
alternatives for use of proceeds.

Advokatfirmaet BAHR AS and Faegre Drinker Biddle & Reath LLP are acting as legal
advisors to PHLY. 
 
Contacts

Media and investor contact:
Kelly Whitaker, Vice President of Sustainability and Communications
Tel: +1 215-875-2640
Email: Kelly.Whitaker@phillyshipyard.com


About Philly Shipyard

Philly Shipyard, Inc. (PSI) is a leading U.S. shipbuilder that is presently
pursuing a mix of commercial and government work. It possesses a
state-of-the-art shipbuilding facility and has earned a reputation as a
preferred provider of oceangoing merchant vessels with a track record of
delivering quality ships, having delivered around 50% of all large ocean-going
Jones Act commercial ships since 2000. PSI is the sole operating subsidiary of
Philly Shipyard ASA. Philly Shipyard ASA is listed on the Oslo Stock Exchange
(XOAX: PHLY) and is majority-owned by Aker Capital AS, which in turn is
wholly-owned by Aker ASA (Aker). Aker is an industrial investment company that
exercises active ownership to create value. Aker has ownership interests in oil
and gas, renewable energy and green technologies, maritime assets, marine
biotechnology and industrial software, and its portfolio includes companies like
Aker BP, Aker Horizons, Aker BioMarine, Cognite, and Aker Solutions. 

For more information about Philly Shipyard, please visit www.phillyshipyard.com.
 
About Hanwha Systems

Hanwha Systems is the representative company of the Republic of Korea ranging
with world-class companies in various business areas based on avionics and
space, security and safety, and information systems service. Hanwha Systems has
Defense Division and ICT Division with customer value being the top priority.
 
About Hanwha Ocean

Hanwha Ocean is a globally renowned maritime and shipbuilding company with 50+
years of shipbuilding experience, including a wide range of naval ships that
include submarines, warships other naval support vessels, as well as commercial
vessels, such as LNG Carriers and Very Large Crude Oil Carriers. Hanwha Ocean's
Okpo shipyard is the second largest and one of the most efficient shipyards in
the world.

*****

This information is considered to include inside information pursuant to the EU
Market Abuse Regulation article 7 and is subject to the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading Act.
This stock exchange announcement was published by Kelly Whitaker, Vice
President, Sustainability and Communications, Philly Shipyard ASA, on 20 June
2024 at 11:00 CEST.

IMPORTANT INFORMATION

This communication is not an offer to sell or purchase, or the solicitation of
an offer to sell or purchase, any securities, or the solicitation of a proxy, in
any jurisdiction in which, or to any person to whom, such offer, sale or
solicitation is not authorized or would be unlawful.

This communication contains forward-looking statements. Forward-looking
statements include statements concerning plans, objectives, goals, strategies,
future events or performance, and other statements, which are not statements of
historical facts. Forward-looking statements are generally identified by the
words "expects", "anticipates", "believes", "intends", "estimates", "plans",
"will be" and similar expressions. You are cautioned that forward-looking
information and statements are subject to various risks and uncertainties, many
of which are difficult to predict and generally beyond the control of PHLY, and
that could cause actual results and developments to differ materially from those
expressed in, or implied or projected by, the forward-looking information and
statements contained herein. The forward-looking statements in this
communication speak only as of the date hereof and, other than as may be
required by applicable law, PHLY does not undertake any obligation to update or
revise any forward-looking information or statements.