Mr Julin (46) has more than 20 years experience within the metals and shipbuilding industries. Since May 2002 he has headed Aker Finnyards, a highly specialised shipyard in the Ro-pax and Cruise Ferry market located on the western coast of Finland. Under his management, Aker Finnyards has had a very positive development and good profitability.

"KMY is a market leader in design and construction of innovative cruise ships and other sophisticated vessels. I look forward to working with the Masa-Yards team," Mr Yrjö Julin said.

"The shipyard must safeguard its leading technology position. We need to continue the ongoing cost improvement programmes. In the short term, the top priority will be to secure new orders for KMY, especially for the Helsinki yard," Mr Julin added.

With Yrjö Julin at the helm of KMY, the close co-operation between KMY and Aker Finnyards will be further strengthened. Since early 2002, the two companies have been working closely together under the joint management of Aker Kvaerner Yards, harvesting considerable synergies.

The owners of Kvaerner Masa-Yards and Aker Finnyards, Aker Kvaerner ASA and Aker Yards AS respectively, have previously clearly stated their intention to combine their shipbuilding activities.

To further emphasise the close working relations between Kvaerner Masa-Yards and Aker Finnyards, Mr Yrjö Julin will be elected to the Board of Directors of Aker Finnyards as vice chairman when he joins Kvaerner Masa-Yards. Mr Jorma Eloranta who has headed Kvaerner Masa-Yards since 2001 will remain in his current posistion unitil February 15th, 2004 and thereafter continue as member of the Kvaerner Masa-Yards board.

ENDS