FAIRSTAR HEAVY TRANSPORT announces NOK 300 million unsecured Bond issue
Fairstar Heavy Transport NV (FAIR) has appointed ABG Sundal Collier ASA, Carnegie ASA, and DnB NOR Markets as joint-lead book runners to arrange an unsecured NOK Bond. The proceeds of the Bond will be used to finance the 50,000DWT semi-submersible vessel FINESSE.

Fairstar has entered into two contracts with Guangzhou Shipbuilding International (GSI) to construct two of these vessels at a purchase price of USD 101,888,000 per vessel. The FINESSE will be delivered to Fairstar in September of 2012. Fairstar also intends to use USD 13 million of the Bond proceeds to pre-pay a short-term facility with ABN AMRO Bank. The remaining proceeds will be for general corporate purposes. The particular details of the Bond will be released by the joint-lead book runners when the Bond is launched in the market this week.

FAIRSTAR HEAVY TRANSPORT PLACES 8,266,728 SHARES WITH ROOSLAND BEHEER BV

Fairstar Heavy Transport NV (FAIR) has issued 8,266,728 shares to Roosland Beheer BV, a member of the Indofin Group, at a price of NOK 8.50

Philip Adkins, Fairstar CEO provides the following background information with respect to this share sale: "Fairstar has been in discussion with representatives of Indofin for several weeks. We believe Indofin will be a valuable partner for Fairstar. Indofin is a well-known and experienced investor in energy service companies. We welcome their close involvement in our business and know they share our vision to firmly establish Fairstar Heavy Transport as the leader of the marine heavy transport industry. Their investment underscores the balance sheet strength Fairstar now has to complete our fleet expansion plans. The semi-submersible vessels FJORD, FJELL, FORTE and FINESSE will be the most modern ships in the global fleet. We will be properly positioned to build on the success we achieved earlier this year with the award of the Gorgon contract to Fairstar. The demand for true open stern vessels, operated by expert crews, in the coming years is compelling. Fairstar will have the ships, crews, engineering resources and the balance sheet strength to provide our clients in the energy industry with the highest possible standards of safety, reliability and performance. Leadership in our industry will not be determined by size".

FAIRSTAR HEAVY TRANSPORT completes registration of 8,266,728 new shares

Reference is made to stock exchange notice of 9 November 2010 regarding the placement of 8,266,728 new shares in Fairstar Heavy Transport NV (FAIR).

The share capital increase has now been registered with the Dutch Trade Register. The total number of outstanding shares in the Company is thus 81,047,779 shares, each with a nominal value of EUR 0.46.

Philip Adkins, CEO, stated: "There has been some confusion in the market today since this share sale was announced this morning. The agreement with the Indofin Group was finalised on Friday 5, November 2010. The Joint Supervisory and Management Boards of Fairstar approved the transaction in a meeting on Saturday 6, November 2010. The authority to issue the shares was granted under a resolution passed by shareholders at the AGM of Fairstar on May 7, 2010. This authority expired on Sunday 7, November 2010. The pricing of NOK 8.50 was set using the market price on Friday 5, November and is consistent with the price of shares offered to shareholders in Fairstar's previous share offering to finance the FORTE in June of this year. No Officer or Director of Fairstar had any knowledge of the interest shown by any third party to acquire shares in Fairstar which led to the purchase of a large block of Fairstar shares by Oceanus International Investments AS on Monday 8, November 2010 at NOK 11. Fairstar is mindful of our responsibilities to treat all shareholders fairly. The agreement last week to sell 8,266,728 shares to Roosland Beheer BV was based on a decision of the Joint Boards of Fairstar to ensure that Fairstar has the long-term balance sheet strength as well as the necessary liquidity to finish construction of the FORTE and FINESSE without any further need of additional equity and to have a significant cash cushion for the coming year."

The new shares will, subject to approval by the Financial Supervisory Authority of Norway of a listing prospectus, be distributed and tradable.