Lamprell, a leading provider of fabrication, engineering and contracting services to the onshore and offshore energy industry, announces that it has entered into an agreement for the sale of one of its smaller non-core service businesses, Litwin PEL LLC ('Litwin'), to Nauvata group of companies for an enterprise value of US$ 3.0 million. Litwin is an engineering and minor EPC contracting company that serves the oil and gas, chemical and petrochemical sectors in Abu Dhabi.

As previously announced, the Board has been reviewing the ownership of certain service businesses which do not form part of the Group's core business. Litwin has been operating in the UAE since 1991, currently employing approximately 80 staff, and was included among the group of entities acquired by the Company in 2011. In 2013, Litwin delivered an operating loss of US$ 5.3 million (based on the 2013 audited accounts). Audited gross assets for the Litwin business as at 31 December 2013 totalled US$ 9.1 million, however there is an overall net liabilities position in the business.

The Group will continue with its process to dispose of the other non-core service businesses but only if acceptable terms can be obtained and subject to Board approval.

Lamprell will use the proceeds from this disposal to support general working capital requirements on its core business streams.

About Lamprell

Lamprell (ticker: LAM), based in the United Arab Emirates (UAE) and with operations throughout the region, has played a prominent role in the development of the energy industry in the Middle East for over 35 years and is the regional market leader in the rig construction business. Lamprell is a leading provider of diversified engineering and contracting services to the onshore and offshore oil & gas and renewable energy industries and since its IPO in 2006 it has established leading market positions in the construction of shallow-water drilling jackup rigs, liftboats, land rigs and rig refurbishment, as well as an international reputation for complex process modules and topsides.

About Litwin PEL

Litwin PEL was established in Abu Dhabi in March 2007 and in less than a year, the company grew into a 200 engineers organization. Apart from the EPC and Engineering Services, Litwin PEL provides also Technical Assistance to all OPCO’s in Abu Dhabi as well as a considerable number of private companies in Oil & Gas Industry in the Middle East.