Odense Steel Shipyard Ltd. sells the Volkswerft Stralsund GmbH

Odense Steel Shipyard Ltd. (Odense Staalskibsværft A/S) has entered into agreement with the Hegemann Group of Companies, Germany regarding the sale of Volkswerft Stralsund GmbH. Conclusion of the sale is subject to documentation of the necessary guarantees by the Hegemann Group of Companies, which is expected by the end of July 2007.