27 January 2004

DML AND APPLEDORE

DML can confirm today (27 January) that it has recommended to its Main Board that it wishes to proceed with a multi-year lease of the Appledore shipyard facility in North Devon. DML is also recommending the transfer of a number of assets of Appledore Shipbuilders Limited (ASL) to DML, under arrangements agreed with the administrative receivers, Tenon Recovery.

Agreement of the lease arrangements and completion of the financial arrangements is subject to DML Board approval, completion of some remaining due diligence items and resolution of outstanding legal issues relating to ex-ASL employees. DML expects these matters to be concluded within the next four weeks.

DML Chief Executive Dennis Gilbert said "This is an important step forwards, both for DML and the former workforce at Appledore. If we do proceed it is going to be a real challenge to get this operation up and running again. We will need support from all individuals and organisations, within the region and nationally, who can influence, in any way, shape or form, the success of the manufacturing and shipbuilding sector in the South West."