Sydney, Apr 19, 2006 (ABN Newswire) - Marine services company, Neptune Marine Services Limited (ASX: NMS), today announced that its Board of Directors has approved the company's Strategy for Growth. Neptune will significantly broaden its range of services in the Merchant Marine, Defence and Marine Infrastructure sectors, and expand its operations into the Oil & Gas sector.

Neptune's Managing Director, Mr Christian Lange, who was appointed in February of this year, said the company's growth will be driven organically, and fast-tracked by pursuing strategic acquisitions.

"In the Merchant Marine, Defence and Marine Infrastructure sectors, Neptune has developed a solid reputation and we are now aggressively capitalising on this to broaden our service lines, customer base and geographical reach. As an immediate priority, we are also aggressively targeting the Australian Oil & Gas sector as a major driver of future growth.

"The company's focus will be to deliver to customers a suite of maintenance-based services that significantly increase Neptune's revenue and secure longer-term projects that produce recurring and predictable revenue streams."

Phase 1 of a two-phase growth program is already underway and completion is expected within 18 months. This phase will establish Neptune as a broad-based service provider in the Australian market, and expand the company's underwater welding technology, NEPSYS, internationally. Phase 2 involves expanding the company's complete service model internationally.

In Australia, Neptune will establish a fully integrated service model encompassing project management, underwater inspection and non-destructive testing, underwater construction, maintenance and repair, and corrosion management.

"These new services are a natural extension of our core capabilities. Initial feedback from customers is very positive, and they support our full service model.

"There is a lot of scope to secure new projects in the Oil & Gas sector, and this is an immediate focus. To strengthen our presence in this market, we will pursue acquisitions that deliver more capabilities and scale to Neptune's business. Opportunities are currently under consideration."

In the short term, Neptune will continue to broaden demand for NEPSYS and underwater painting services by expanding into international markets, notably Asia and the Gulf of Mexico.

"We are already witnessing the potential of the NEPSYS technology and there is significant scope to secure new work in the Oil & Gas, Merchant Marine, Defence and Marine Infrastructure sectors."

Mr Lange said the Strategy for Growth is underpinned by increasing the skill base of Neptune's management team and further strengthening the Board of Directors. The stronger management team and the Board have the combined skills and reputations to grow the company's presence in the Oil & Gas sector.

"We have already taken action to harness the talent of the existing Neptune team as well as broaden the skill base required to drive expansion. Geoff O'Connor has been appointed as the new head of marketing and business development. Geoff was recently with Lloyds Register and has a further 12 years experience with Shell. Attracting the right talent is a key factor in driving growth.

"The experience and skills of the Board is also a critical factor for Neptune. The recent appointment of Non-Executive Director David Agostini is a major coup for the company. David has a wealth of experience in the Oil & Gas sector and is a recognised leader in the national energy market. David is reviewing the skills and composition of the Board to support future growth.

"This is an exciting time for Neptune. We are confident that our Strategy for Growth will drive revenue and earnings and translate into increased returns for shareholders," Mr Lange said.

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