www.stxengine.co.kr

NEW GLOBAL LEADER, STX ENGINE

NEW GLOBAL LEADER, STX ENGINE

www.stxengine.co.kr

About STX Engine 회사 개요

Dream & Future We look towards the future Because we have a grand dream for tomorrow, We STX Engine will become the Global Top engine maker and a Global Leader in Electronic Communication field.

contents 04 About STX Engine 06 Messages /Chairman 08 Messages / CEO 10 History of Transformation 12 Our Business 14 Marine Diesel Engine 16 Military Diesel Engine 18 Power Plant 20 Electronic Communication Equipment 22 Technology Development 24 R&D 26 Quality Management 28 Engine Machinery 32 Corporate Social Responsibility 34 Global Network

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About STX Engine ◦ Messages / Chairman ◦ Messages / CEO ◦ History of Transformation

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Chairman’s Message

About STX Engine Messages / Chairman Messages / CEO History of Transformation Our Business Marine Diesel Engine Military Diesel Engine Power Plant Electronic Communication Equipment Technology Development R&D Quality Management Engine Machinery Corporate Social Responsibility Global Network

With the vision of becoming the world’s best corporation, we are building our dream and the future. Our subsidiaries had achieved large growth in their areas of business (shipping, international trade, ship construction, machinery, plant construction and energy), through which we are making progress in becoming a true global company and thus contribute to Korea’s economy and her industrial progress. In particular, by becoming a holding company in 2004 and adopting the most advanced management structure, our holding company and each of our subsidiaries are practicing responsible and transparent business management conduct and in strengthening our core talent to establish a system for which to become a global company. We, STX Group will utilize our 67 international branches to regionalize the global market and we’ll strengthen these regions by 4 core businesses (Shipping & Trade, Ship Construction & Machinery, Plant Construction & Energy), maximizing their synergy effect. And in order to achieve the above, we’ll make all our international branches the corporations of each country and will positively attempt to penetrate into corresponding markets. In the areas of shipping & trade, we’ll expand and create grounds for new growth, in ship construction and machinery; we’ll make selections for core products for concentrated development and reconstruct our manufacturing plant and maximize the efficiency of these plants, in plant construction, we’ll expand and strengthen the businesses that are growing and cultivate integrated construction company, and in our energy business, we’ll develop foreign resources and cultivate integrated energy company. In addition, we are ceaselessly putting our efforts in contributing to all areas of human society, whether they are social, environmental and economical. In summary, we are endeavoring with all our management ability, to become a corporation that is respected and trusted. In our current world of rapid business changes, we will make our company that is truly the “World Best”, with the support of our shareholders and our customers and through creative minds, innovative management strategies and by management that ensures continuous growth and consolidation of innate structure.

Chairman Duk Soo Kang

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CEO’s Message

About STX Engine Messages / Chairman Messages / CEO History of Transformation Our Business Marine Diesel Engine Military Diesel Engine Power Plant Electronic Communication Equipment Technology Development R&D Quality Management Engine Machinery

Global Top Engine Maker We are building our dream of becoming a global leader in the field of Electronic Communication Equipment Our company, STX Engine started out in December 1976 as a diesel engine manufacturer. After being chosen as one of Korea’s defense force companies, we grew as one of the global leaders in the areas of diesel engine, power plants and Electronic Communication Equipment with the accumulation of technology and knowhow.

Corporate Social Responsibility Global Network

Diesel engine is known to be the “Flower of Machinery Industry” that is represented by its technology in minute precision. And from this diesel engine industry to engines of ships, military and private sector, we are making and providing to the markets of both local and foreign, the best of quality diesel engines. We also recognize the importance of maintaining the green planet and therefore our future, so we had already carried out projects to install environmentally friendly power plants and manufacturing plants. Recently, we entered the gas turbine industry and had been manufacturing variety of power generating gas turbines for the market. In addition, in order to achieve enhancements in our business structure, we strengthened our divisions in submarine sonar, radio detection, wired and mobile communication for defense force. And based on such diversified business establishments, we had exported 70-80% of our production to Europe and Asia, for which we were awarded the “500 million dollars export award 2006”, the “700 million dollars export award 2007” and the “800 million dollars export award 2008”. Based on our aspiration for creation and challenge, we are realizing our goals of achieving the customer centered management, speed management and technology management through expansion of futuristic business and strengthening of our ship construction, Electronic Communication Equipment and power generators businesses. We’ll not stop endeavoring to realize our dream of becoming the “World Best Corporation of 21st Century”. We thank you for your kind and ongoing support for STX.

CEO Dong Hak Jung

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About STX Engine Messages / Chairman Messages / CEO History of Transformation Our Business Marine Diesel Engine Military Diesel Engine Power Plant Electronic Communication Equipment Technology Development R&D Quality Management Engine Machinery Corporate Social Responsibility Global Network

2000’s 2009 June: Awarded the “Ministry of Environment Award” for environmental activities Jan: STX Dalian Engine commenced full operation, produced first engine for ships 2008 Dec: Chosen as the “Best Company for Security” (Ministry of Defense) Nov: Awarded the “800 million dollars export award” Nov: Awarded the “34th Quality Management Convention, Quality Award” Sep: Yongin Branch Acquired ISO 14001 Certification Jul: Re-chosen as one of the environmentally friendly corporation 2007 Nov: Awarded the “700 million dollars export award” Oct: Acquired the Defense quality system (KDS0050-9000) Certification for Electronic Communication Equipment 2006 Dec: Awarded the “1st Environmentally Friendly Corporate Management Award” Nov: Awarded the “500 million dollars export award” The CEO, Kang Sik Rhee received the “Gold Tower Medal for Industrial Excellence” Nov: Awarded the “Ministry of Knowledge Economy, Minister’s Award” for the Precision Calibration field in the “36th Precision Calibration Technology Convention” Jul: Acquired the OHSAS 18001 Certification 2005 Dec: Awarded the “400 million dollars export award” Nov: Acquired the ISO 14001 Certification Oct: Awarded the Defense Quality Award for Excellence May: STX Engine and STX Radarsys established a merger 2004 Nov: Awarded the “Excellence in Global Management Award” (JMAC) Jun: Acquired the World’s Best Product Certification (Ministry of Knowledge Economy) Apr: Changed the company name to STX Engine Co. 2003 Nov: Awarded the “200 million dollars export award” 2002 Nov: Acquired STX Energy Co. Mar: Acquired the KOLAS Certification 2001 Nov: Awarded the “70 million dollars export award” Oct: Acquired STX Ship Building Co. Aug: Acquired the EM Mark for low NOx type engine Jun: Divided the company by business divisions - established Enpaco Co. May: Change the company name to STX Co. Feb: Acquired the Defense quality system (KDS0050-9000) Certification for Diesel Engine Jan: Announced the second business (Ssangyong Subsidiary Division, approved by Fair Trade Commission) 2000 Jul: Re-chosen as one of the environmentally friendly corporation 1990’s 1998 Dec: Chosen as one of top 30 companies in Information Technology (Ministry of Information & Communication) 1996 Dec: Chosen as one of the environmentally friendly corporation 1996 Apr: Acquired ISO 9001 International Quality Certification 1993 Feb: Acquired ISO 9002 International Quality Certification 1990 Sep: Company Disclosure 1980’s 1989 May: Established the Engine Research Center 1988 Nov: Built the manufacturing plant exclusive for special engines 1980 Oct: Chosen for exclusive diesel engine manufacturer 1970’s 1978 Dec: Built the Manufacturing Plant 1977 Jul: Chosen as one of companies for defense 1976 Dec: Company Establishment

World Best STX engine is the one of world’s best diesel engine manufacturers. While we had been strengthening our business in diesel engines for ships and military and growing continuously in our Electronic Communication Equipment business, we had also entered the market for power plants, environmental equipments and other futuristic industries, through which we established the platform for future growth. We are determined to realize our vision of becoming the Global Top engine maker.

W orl dB es t

A History of Transformation

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The diesel engine manufacturer STX Engine is showing prominence in power plants and Electronic Communication Equipment. These businesses are actively being nurtured for them to become sources of new growth for the corporation’s future. This is based on the technology and knowhow STX Engine had accumulated in 30 years of manufacturing the diesel engines for ships and military.

Our Business ◦ Vessel engines ◦ Military Diesel Engine ◦ Power plants ◦ Electronic Communication Equipment

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Marine Diesel Engine

About STX Engine Messages / Chairman Messages / CEO History of Transformation

STX Engine – “Marine Diesel Generator Engine” was selected as one of world’s best products. We are firmly establishing ourselves as the Global Top Engine Maker.

Our Business Marine Diesel Engine Military Diesel Engine Power Plant Electronic Communication Equipment

As a result of ceaseless progress in technology, our Marine Diesel Generator Engine was selected as one of world’s best products. In addition, under technology cooperation with the diesel engine manufacturers, MAN DIESEL and Nigata, we are exporting the main engines which provide ship’s main thrust and supporting parts that supply power to all around the world.

Technology Development R&D Quality Management

We take up 40% of local marine diesel engine market. We manufacture engines that add up to 5 million horse power per annum, and the flagship products that we export (200-15,000 horse power) are of world class quality and technology that are high output and low fuel consumption. Our engines provide the most optimal Propulsion Package that includes ship location control device and marine navigation communication devices. In doing so, we are proactively taking initiatives in meeting the market demands for cruisers and offshore ships.

Engine Machinery Corporate Social Responsibility Global Network

We are also manufacturing diesel engines that are used for industrial equipments that include backup power generators, trains, port cranes and POWERPACK, with technology cooperation with Cummins Co of USA and MAN Co of Germany.

Main Products

Model: S35MC Application ◦Low Speed 2-ST Main Engine ◦Oil Chemical Tankers & Etc

Model: L+V32/40 Application ◦Mid Speed 4-ST main engine ◦Drill Ship, FPSO, LNG Ships & Etc

Model: L27/38 Application ◦Mid Speed 4-ST Main & Generator Engine ◦Container Ships & Etc

Marine Model: L21/31 Application ◦Mid Speed 4-ST Main/ Generator Engine ◦Container Ships & Etc

Model: L16/24 Application ◦Mid Speed 4-ST Main Engine ◦Oil Chemical Tankers & Etc

Model: SCG-100 Application ◦High Speed 4 Marine Backup Generator ◦Container Ships & Etc

Diesel Engine

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Military Diesel Engine

About STX Engine Messages / Chairman Messages / CEO History of Transformation

STX Engine manufactures World Class Engine with cutting edge technology. Our engines are small, light and yet have high power output with high performance.

Our Business Marine Diesel Engine Military Diesel Engine Power Plant Electronic Communication Equipment

STX Engine’s military diesel engine was designed with focuses in small size, lightness and high power output. Made from aluminum and highly tensile forged steel, and parts that underwent mid-depth cutting and high precision processing, the product can maintain high power and high speed rotation that ensure most optimal performance even under most extreme circumstances.

Technology Development R&D Quality Management

Through technology cooperation with MTU of Germany, STX Engine is producing engines for army’s K1A1 tank, armored recovery vehicle of K1 family, armored vehicle launched bridge and also the engines for K9, K55 self-propelled artillery, navy’s new model destroyers, patrol killer medium, frigates, corvettes and coastal guard’s patrol boats.

Engine Machinery Corporate Social Responsibility Global Network

Main Products

Model: MB 871 Ka-501 Application ◦High Speed 4 Stoke Engine ◦K1A1 Tank, armored vehicle launched bridge, armored recovery vehicle

Model: MT 881 Ka-500 Application ◦High Speed 4 Stroke Engine ◦K9 New Model Self-Propelled Artillery, K10 Ammunition Vehicle

Military Model: 20V956TB82 Application ◦High Speed, high power engine ◦KDX-Ⅰ (Korean Destroyer) ◦KDX-Ⅱ (New Korean Destroyer)

Model: 16V1163TB83 Application ◦High Speed, high power engine ◦Rescue Ship (1500 tons)

Model: 8V396TB83 Application ◦High Speed, high power main/ backup generator engine ◦AOE (Fleet Oiler)

Diesel Engine

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Power Plant

About STX Engine Messages / Chairman Messages / CEO History of Transformation Our Business Marine Diesel Engine Military Diesel Engine Power Plant Electronic Communication Equipment Technology Development R&D Quality Management Engine Machinery Corporate Social Responsibility Global Network

Diversification of Business through development of world class quality engines for power plants

Based on 30 years of experience, technology and optimized customer centric engineering capability in the field of diesel engine, STX Engine’s technology and quality in the diesel engine for power plant get due recognition. In addition, STX Engine is fast showing prominence also in gas engine field. With the establishment of technology cooperation with Germany’s MAN-Diesel that has one of world best technology in the field, STX Engine is able to put together 1-250MW level of power plant installation per unit with strong durability, low fuel consumption, low operation cost and maintenance. Equipped with such formidable technology, STX Engine had performed many projects successfully for Korea’s main power companies, private power companies and other foreign electrical energy administrations, and recently STX Engine had developed large scale low speed 2 stroke diesel engines for power plants and mobile engine for power plants that is mobile and easy to install, through which it is able to provide more diversified products and services to its valued customers. STX Engine also supply gas engines that use LNG and BIO gases to Korean hospitals, banks, research centers and other main Korean customers. We had sold gas turbine power plant engines to major medical and financial institutions including Samsung Medical Center, and we are making ceaseless efforts to expand our market through continuous technology development.

Power Plant Gas Engine ◦ STX Engine had integrated Japan’s Nigata Power System’s technology

to plant engineering technology in meeting the new customer demands to supply environmentally friendly power plant gas engines that use clean LNG to major Korean customer and is also making expansion to foreign markets.

Power Plant Gas Turbine ◦ STX Engine had been power plant gas turbines to Korean customers by

combining its engineering technology with Japan’s Nigata Power System. STX Engine’s gas turbines produce high quality and stable electric power in the case of power failure that will protect the possible damages that may incur due to power failure in special facilities such as hospitals, banks, data center and research centers and sports facilities.

Mid, low speeds diesel power plant ◦ Diesel engine power plants had been in production since mid 70’s with the

optimal technology gained from cooperating with many engine makers of the world along with STX Engine’s power plant system design based on its vast experience. Suitable for isolated islands and areas and resorts where easy power access is not possible, and for those industrial complexes and hospitals that require high quality power source and for plants that are acquiring highly expensive power, STX Engine’s system can supply power in limited amount of time with low installation, maintenance and maximized operation rate.

Power Plant

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Electronic Communication Equipment

About STX Engine Messages / Chairman Messages / CEO History of Transformation Our Business Marine Diesel Engine Military Diesel Engine Power Plant Electronic Communication Equipment Technology Development R&D Quality Management Engine Machinery Corporate Social Responsibility

STX Engine is making independent high technology communication equipments Radio Detection Devices are an essential defense system for safe navigation and target detection and identification. STX Engine designs and manufactures and supply to the defense force, variety of radio detection devices based on 2-dimensional radar field. Also, STX Engine focuses in developing sonar detection devices and has in possession the technologies for underwater sound signaling and data processing and underwater sonar sensors. STX Engine not only makes in multi-purpose console for battle system, which is its core hardware but also participate in military satellite system business and develop systems for surveillance unmanned aircraft’s wireless wide area data links in conjunction with defense force research laboratory and has these systems in actual live combat positions. STX Engine is also contributing largely to safe shipping by producing integrated navigation and communication devices.

Global Network

Underwater Sonar System

Radio Detection

◦Towed Array Sonar System: TASS, TASS MOD1 ◦Torpedo Acoustic Counter Measure: TACM ◦Hydrophone ◦Transducer ◦Synthetic Underwater Acoustic Test System: SUATS ◦Large Output Sensor ◦Integrated Ocean Environment Analysis System: IOEAS ◦Next Generation Frigate Sonar System ◦Jang Bo Go-II Sonar System

◦Battle Ship Radar: SPS-95K ◦Coastal Surveillance Radar: GPS-98K ◦Radar Indicator: SPA-99K ◦Naval Vessel Radar: SPS-100K / Next Generation Patrol Killer Tracking Radar ◦Altimeter for Aircraft / Remote Control Network Transmitter

Battle System Console

Navigation & Communication

◦Multi Function. Control Console ◦Korean Multi Function Console: KMFC

◦Navigation & Communication Equipments ◦Voyage Data Recorder, VDR, S-VDR ◦Electronic Chart Display and Information System (ECDIS) ◦Vessel Radar: 25kW(X-Band), 30kW(S-Band)

Offshore Systems

◦Propulsion Control System ◦Dynamic Positioning System ◦Thruster Control System ◦Vessel Management System ◦Power Management System

Vessel Automation

◦Monitoring Control System ◦Engine Manoeuvring System ◦Electronic Governor System ◦Engine Protection System ◦Dynamic Positioning System

Tactical Telecommunication ◦Military Satellite Communication System ◦Vessel Satellite Terminal (NS) ◦PAMA Controller (PAMA) ◦General Link Modem ◦Army Unmanned Aerial Vehicle (UAV) Communication System ◦Mid altitude Unmanned Aerial Vehicle (MUAV) Data Link System ◦Automatic Taking Off and Landing System (ATOLS) ◦Close Range Surveillance Unmanned Aircraft Communication System ◦Smart Unmanned Aerial Vehicle (Smart UAV) Communication System ◦Control System

Electronic Communication

Equipment

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Technology Development ◦ R&D ◦ Quality Management

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R&D

About STX Engine Messages / Chairman Messages / CEO History of Transformation Our Business Marine Diesel Engine Military Diesel Engine Power Plant Electronic Communication Equipment Technology Development R&D Quality Management Engine Machinery Corporate Social Responsibility Global Network

Research & Development

STX Engine is pursuing limitless technology and value. STX Engine is putting much efforts into research & development to provide the world best diesel engine products and parts, power plant equipments, environmental equipments, engine control system, electronic communication equipments and batteries, centered around the engine technology research center and electronic communication research center. Along with successful localized accumulated production of 20million horse power in the field of 4 stroke diesel engine, STX Engine was even chosen as the “World’s Best Product” by the ministry of Knowledge Economy in 2004 for its contribution to the country’s export performance and its high quality technology. STX Engine’s vessel engines are being exported to Germany; quite an achievement considering that Germany is the birth place of diesel engines. This is evidence to the fact that STX Engine’s products are being widely accepted for its excellence and quality. In the area of electronics communication, STX Engine had locally developed vessel radars, the VDR (Voyage Data Recorder), which is known as the black box for vessels, proving its world class technology. In addition, STX Engine is expanding to general vessel automation and offshore package business, effectively providing total solution packages for vessels.

Research Center The research center was established to obtain technology for diesel/gas engines, power plant/environmental equipments, and it’s putting its main efforts into developing technologies for analysis and instrumentation of combustion, heat transfer, vibration noise and structure, post treatment of exhaustion and localization of engine parts. Also, STX Engine is positively reacting to the environmental problems of the world; it not only puts efforts into developing the new sources of energy such as solar and wind but also in gas turbine and SCR system.

Research Center for Electronic Communication The research center for electronic communication is a system integration organization that had developed independently such systems as underwater sonar system, radio detection system and battle control system. Through continuous investment and technology development, it is focusing heavily on development of Korean high-tech arms and based on the technology acquired in the defense industry, we are also driving our business in the areas of vessel navigation communication equipments and automation.

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Quality Management

About STX Engine Messages / Chairman Messages / CEO History of Transformation Our Business Marine Diesel Engine Military Diesel Engine Power Plant Electronic Communication Equipment Technology Development R&D Quality Management

STX Engine is pursuing limitless technology and value. After acquiring the quality management system certification in the field of diesel engine from DNV in 1993 for the first time in Korea, STX Engine had acquired in addition, KDS 0050-9000 certification (quality system for military products) and systems for environment and safety such as ISO 14001 and OHSAS 18001 through which the platform for world class quality assurance was established. By building and managing the socially, economically and environmentally integrated business management system, STX Engine is in plan to build an ever growing management system to realize the corporate vision of becoming the World Best.

Engine Machinery

STX Engine’s product quality and technology that the world recognizes Even in quality management, STX Engine acquired the “Process Evaluation System” in its military engine plants. So STX Engine is properly equipped with system that ensures quality for military products. Following from 2001, STX Engine acquired the military quality management system certification (KDS 0050-9000:2002) in the fields of diesels engine manufacture for categories of bullet, maneuverability and vessels. In the fields of vessels and industrial engines, STX Engine had established MSA with Norway Register of Shipping and had always maintained quality management and security. As a result, STX Engine received ISO 9002 for diesel engine for the first time in Korea in Feb 1993, and in Sep 1994, it was chosen as one of top 100 companies in quality management by Industrial Promotion Bureau. And in Oct of the same year, it received the certification given by Korean Register of Shipping for mass production process for diesel engine. In addition, by acquiring ISO 9001, ISO 14001, OHSAS 18001, International Certification for Certified Calibrator, Military Quality Management Excellence Award (Ministry of Defense) and Ministry of Commerce, Industry and Energy Award in the field of precision calibration, STX Engine had virtually acquired all the international certifications related to quality management.

Corporate Social Responsibility Global Network

ISO 9001 Certification

ISO 14001 Certification

OHSAS 18001 Certification

Military Quality Management International Certification for System Certification Certified Calibrator

Also it is yielding positive results by driving and vitalizing after implementing the Malcom Baldridge Quality Management 6 Sigma management system and starting quality enhancement (TFT) in 2006. In particular, the 6 Sigma Training made 50% of all staff to be accredited above Green Belt. STX Engine holds TQI convention every year that is participated by the business partner’s quality related staff and STX Engine’s executives, and by presenting awards and incentives for quality projects, active participation and motives for quality are encouraged. Such efforts in quality management resulted in the company receiving the President of Korea’s award for Excellence in Quality Management at the Quality Management Convention of Korea. In order to improve business partners’ supplied parts’ quality, SCQM (Supply Chain Quality Management) activities are being carried out and with STX Engine’s own STX-SCQM Model; STX Engine performs enhancement and evaluation activities for business partners’ quality management.

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Engine Machinery

About STX Engine Messages / Chairman Messages / CEO History of Transformation Our Business Marine Diesel Engine Military Diesel Engine Power Plant Electronic Communication Equipment

With the perfect synergy from vertical organizational structure, we pursue one value; being the world best. With foundation laying on STX Engine, which is one of 3 world leaders in engines, we have established a vertical organization from shipping parts and vessel engine manufacturing, ship construction and shipping. And through entering into plants, construction and energy businesses, we are maximizing the synergy effects of such diversification. In addition, we built an integrated shipping base in China, strengthening the virtual organization structure even in overseas.

Technology Development R&D Quality Management Engine Machinery Corporate Social Responsibility Global Network

STX Heavy Industries

STX Enpaco We are growing to become the world class ship machinery module maker Through accumulated knowhow and technology in diesel engines’ core parts and materials, the turbo charger for mid speed diesel engines and crank shafts etc are being continuously developed and produced.

We are expanding our business areas to large scale diesel engines, shipping parts and industrial plants. While strengthening the world class competitiveness by maximizing the synergy effects of virtual organizational structure and the company subsidiaries, we are ceaselessly making steps towards becoming a world class plant maker by actively driving industrial plant businesses; plants for cement, power generation, environment and chemical.

STX Dalian China STX Dalian Integrated Ship Manufacturing Plant STX in Dalian China is building its dream of becoming the global top ship and engine maker. It had established manufacturing facilities for basic material processing to engine assembly, block production, ship drying and marine structures. Main Products ◦ Ship Yard : bulk vessel, vehicle transportation ship, oilers ◦ Marine Structure Manufacturing Plant : material casting/forging, parts and engines for vessels, fixed or buoyant marine structures

STX in Fushun China STX Fushun China is creating synergy effects along with STX Dalian’s shipping base and STX Enpacco, located in Qingdao China. The vertical organizational structure is being completed for production in China. Main Products ◦ BLOCK, Tubocharger, 4-ST Crank Shaft, 4-ST HEAD

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Corporate Social Responsibility ◦ Social Responsibility

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Corporate Social Responsibility

About STX Engine Messages / Chairman Messages / CEO History of Transformation Our Business Marine Diesel Engine Military Diesel Engine Power Plant Electronic Communication Equipment Technology Development R&D Quality Management Engine Machinery Corporate Social Responsibility Global Network

Corporate that is with the local society and which cares for unfortunate members of society We, STX Engine believe that sharing and cultural expansion will ultimately bring about social advancements. So we built a motto of “building a world with dreams and future”. We are contributing in many ways to local society through such efforts as establishing company-school sisterhood to nurture future talents for the society, funding for opening of 77th “lovely” shop in the neighborhood, and hosting campaigns such as “Thank you Campaign”, and “small library campaign”. And also, we are taking active role in providing welfare services to help the poor and unfortunate people of society. We also had set our “Sea Love” campaign as the core social contribution program and we are carrying out variety of environment preservation activities along with our efforts of conducting socially responsible business management through such activities as establishing sisterhood between the company and a fishing village. In 2006, in order to practice such social activities systematically and with more long term purpose, STX Group established STX Academic Foundation and STX Welfare Foundation. The STX Academic Foundation was found to raise more variety of professional talents. It funds for bright university students and their studies abroad, academic-industry cooperation and also it gives funds for researches and projects etc. The STX Welfare Foundation helps those poor and unfortunate people in our society such as families with youth as the head of the family and malnourished elderly people. It actively carries out variety of other social welfare activities such as helping in recovery from natural disasters, and leading housing projects for the poor etc. We are also the main sponsor for Gyeongnam professional football team (Gyeongnam FC). We will fund in total of 20 billion won to the club by 2009, contributing to advancement of Korea’s professional football league and also to harmony of the local society through sports and the civilians’ healthy cultural lives. In 2007, we established the STX-SOUL, a professional gamers team, through which we are contributing to Korea’s eSports to globalize and lead the eSports industry and healthy expansion of younger generation’s culture.

Global Network NORTH AMERICA

With the close cooperation between the subsidiaries in 4 fields and synergy created by them; sea transportation and trade, ship construction and machinery, plants and construction and Energy, one of Korea’s most prominent global corporations, STX Engine will step towards becoming the 21st century’s World Best Global Top Engine maker.

www.stxengine.co.kr

Business Group

| USA | 01 STX Pan Ocean America, Inc. 201 Route17 North, 6th Floor, Rutherford, New Jersey 07070, USA Tel. 1-201-507-9952 Fax. 1-201-507-9951

01 Changwon HQ: Gyeongnam Changwon-si Sungshindong 80. Tel. 82-55-280-0114 Fax. 82-55-280-2030 02 Military Engine Plant (High Speed Engine) 03 Private Purpose Engine Plant (mid, low speed) 04 Yongin Branch (Electronic Communication) 05 STX Corporation www.stx.co.kr 06 STX Pan Ocean www.stxpanocean.co.kr 07 STX Offshore & Shipbuilding www.stxons.com 08 STX Heavy Industries www.stxhi.co.kr 09 STX Enpaco www.stxenpaco.co.kr 10 STX Energy www.stxenergy.co.kr 11 STX Construction www.stxconst.co.kr

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02 STX Pan Ocean New Orleans Office 3330 W.Esplanade Ave. Suite 602 Metairie Louisiana-70002, USA Tel. 1-504-835-3856 Fax. 1-504-835-3951 03 STX Pan Ocean Portland Office 1500 NE Irving St. Suite 380 Portland Oregon, 97232, USA Tel. 1-503-225-9359 Fax. 1-503-225-9310 04 STX APRILIS, INC

SOUTH AMERICA | BRAZIL | 05 STX Brazil Trading Ltda. Rua Lauro Muller, 116 Sala 507, Botafogo, Rj, Brazil Tel. 55-21-2543-4447 Fax. 55-21-2718-9070 06 STX Brazil Offshore Praca Alcides Pereia, 1-Parte Ilha da Conceicao Niteroi-RJ Brazil Tel. 55-21-2718-9090 Fax. 55-21-2718-9070 | CHILE | 07 STX Pan Ocean Santiago Office Edificio ‘Patio Isidora II’ Isidora Goyenechea No.3365 Piso 14. Las Condes, Santiago, Chile Tel. 56-2-365-0205 Fax. 56-2-374-6942

EUROPE | AZERBAIJAN | 08 STX Energy Azerbaijan Office 44, J.Jabbarli St. Caspian Plaza Baku AZ 1065, Azerbaijan Tel. 994-12-436-7675 Fax. 994-12-436-7674 | BELGIUM |

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09 STX Pan Ocean Antwerp Office C/O Central Shipping Belgium N.V. North Trade Building, 5th Floor, Noorderlaan, 133, 2030 Antwerp, Belgium Tel. 32-3-540-0390/3 Fax. 32-3-540-0398/9

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| DENMARK | 10 STX Enpaco Denmark Branch Ostervej2 dk-4960 Holeby, Denmark Tel. 45-5469-1401 Fax. 45-5469-1409 11 Sp/f STX Faroes Ltd.

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| ENGLAND | 12 STX Pan Ocean(U.K.) Co., Ltd. 8th Floor, ST Magnus House, 3 Lower Thames St. London, EC3R 6HE, UK Tel. 44-20-7626-3594, 44-20-7623-1047 Fax. 44-20-7626-3596 13 STX Corporation London Office 8th Floor, ST Magnus House, 3 Lower Thames St. London, EC3R 6HE, UK Tel. 44-20-7929-1767/1769 Fax. 44-20-7929-1817 | FINLAND | 14 STX Finland Cruise, Helsinki P.O.Box 132 FI-00151 Halsinki, Finland Tel. 358-10-6700 Fax. 358-9-650-051

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15 STX Finland Cruise, Rauma P.O.Box 302 FI-26101 Rauma, Finland Tel. 358-10-6700 Fax. 358-10-670-4007 16 STX Finland Cruise, Turku P.O.Box 666 FI-20101 Turku, Finland Tel. 358-10-6700 Fax. 358-10-670-6700 | FRANCE |

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STX HEAD QUARTERS STX Namsan Tower, 631 Namdaemunno 5-ga, Jung-go, Seoul, Korea Tel, 82-2-316-9600, Fax. 82-2-316-9999

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17 STX France Cruise, Lorient Z.I. de Rohu 56000 Lorient, France Tel. 33-2-9776-8910 Fax. 33-2-9776-1600

18 STX France Cruise, Saint-Nazaire Avenue Bourdelle BP 61775 44617 Saint-Nazaire Cedex, France Tel. 33-2-5110-9100 Fax. 33-2-5110-9797 | GERMANY | 19 Wadan Yards, Warnemunde Warnemunde, Werftallee 10 DE-18119, Rostock-Warnemunde, Germany Tel. 49-381-5100 Fax. 49-381-52574 20 Wadan Yards, Wismar Wendorfer, Weg 5 DE-23966 Wismar, Germany Tel. 49-384-1770 Fax. 49-384-176-3624 | GREECE | 21 STX Corporation Athens Office 247 Syngrou Avenue & 1 Priinis St. Nea Smyrni, Athens, Greece Tel. 30-210-9422-137 Fax. 30-210-9406-686 | IRELAND | 22 STX Ireland Limited | NORWAY | 23 STX Norway AS Bolette Brygge 1, Tjuvhomen, 0252 Oslo, Norway Tel. 47-2311-9500 Fax. 47-2311-9509 24 STX Europe ASA Karenslyst alle 57 Skøyen N-0277 OSLO, Norway Tel. 47-2102-1500 Fax. 47-2350-1101 25 STX Norway Offshore, Aukra NO-6480 Aukra, Norway Tel. 47-7117-1200 Fax. 47-7117-4990 26 STX Norway Offshore, Brattvaag NO-6270 Brattvaag, Norway Tel. 47-7021-0600 Fax. 47-7021-0602 27 STX Norway Offshore, Brevik P.O.Box 15 NO-3991 Brevik, Norway Tel. 47-3551-8700 Fax. 47-3551-8800 28 STX Norway Offshore, Florø P.O.Box 334 NO-6902 Florø, Norway Tel. 47-5774-6800 Fax. 47-5774-6900 29 STX Norway Offshore, Langsten NO-6393 Tomrefjord, Norway Tel. 47-7118-3500 Fax. 47-7118-3501 30 STX Norway Offshore, Søviknes NO-6280 Søvik, Norway Tel. 47-7021-0800 Fax. 47-7021-0801 | ROMANIA | 31 STX Romania, Braila 1A, Celulozei Street RO-810282 Braila. Romania Tel. 40-239-607-000 Fax. 40-239-607-003 32 STX Romania Offshore, Tulcea 8, Portului Street RO-8800 Tulcea, Romania Tel. 40-240-534-519 Fax. 40-240-534-062

ASIA | CHINA | 33 STX (Dalian) Shipbuilding Co., Ltd. STX (Dalian) Heavy Industries Co., Ltd. STX (Dalian) Marine Engineering Co., Ltd. STX (Dalian) Engine Co., Ltd. STX Dalian Precision Engineering Co., Ltd. STX (Dalian) Metal Co., Ltd. STX (Dalian) Plant Co., Ltd. STX (Dalian) Business Center Co., Ltd. STX Construction (Dalian) Co., Ltd. STX Real Property Development (Dalian) Co., Ltd. STX (Dalian) Shipbuilding Engineering Co., Ltd. POSI (Dalian) Logistics Co., Ltd. Bachagou, Changxing Island Harbor Industrial Zone, Dalian, China P.O. 116318 Tel. 86-411-3939-1480 Fax. 86-411-3939-4403

34 STX Shanghai Corporation Ltd. Room 2005, West Tower, Shanghai ZhongRong Hengrui International Plaza, No. 560 Zhangyang Road, Pudong Shanghai, China Tel. 86-21-6160-9001/2 Fax. 86-21-6160-9003

51 STX Pan Ocean Jakarta Office 13th Floor, Wisama Kalimanis KAV.33 JL.Letjen Haryono Mt. Jakarta 12770, Indonesia Tel. 62-21-798-6127/8 Fax. 62-21-798-6089

35 Beijing Branch of STX (Shanghai) Corporation Room 404, Tower B, Henderson Center, No. 18 Jianguomennei Avenue. Dongcheng District, Beijing, China Tel. 86-10-6518-9891 Fax. 86-10-6518-9893

52 STX Japan Corporation 5th Floor, Toranomon1-chome Mori Bldg., 1-19-5 Toranomon, Minato-ku, Tokyo. Japan, 105-0001 Tel. 81-3-5510-1321~3 Fax. 81-3-5510-1324

36 Ningbo Branch of STX (Shanghai) Corporation Room 705, Portman Plaza, No. 48 Caihong North Rd, Ningbo, China Tel. 86-574-8795-5276 Fax. 86-574-8795-5279 37 Wuxi Branch of STX (Shanghai) Corporation Room AB 15th Floor, No. 359 Zhongshan Road, Wuxi, Jiangsu, China Tel. 86-510-8118-9653 Fax. 86-510-8118-9650 38 STX Fushun Heavy Industries Co., Ltd. No.2 Shuang Yang Road, Shuncheung District Fushun, China Tel. 86-413-764-2451 Fax. 86-413-764-2165 39 STX Pan Ocean (China) Co., Ltd. Room 2004. West Bldg,Shanghai ZhongRong Hengrui International Plaza, No.560 Zhangyang Road, Pudong, Shanghai, 200122, China Tel. 86-21-6160-4100 Fax. 86-21-6160-4011 40 Qingdao STX International Logistics Co., Ltd. FL26, Hua Yin Plaza, No.5 Donghai West Road, Qingdao, China Tel. 86-532-8907-2999/2201 Fax. 86-21-8907-2258/2200 41 Qingdao STX Machinery Co., Ltd. LongQuan 3 Road Northern Industrial Park Qingdao, China Tel. 86-532-8653-9510 Fax. 86-532-8653-9512 42 STX Pan Ocean (Hong Kong) Co., Ltd. Suite 5501 55th Floor, Central Plaza 18 Harbour Road Wanchai, Hongkong, China Tel. 85-2-3655-6300 Fax. 85-2-2528-1938 43 Tianjin Branch of STX Pan Ocean(China) Co., Ltd. Room 1910, The Exchange North Tower 189 Nanjing Road, Helping District, Tianjin, China Tel. 86-22-2313-9792/3 Fax. 86-22-2313-9794 44 Qingdao Branch of STX Pan Ocean (China) Co., Ltd. Room 1526, Hisense Tower, No 17 Donghai West Road, Qingdao, China (P/C 266071) Tel. 86-532-8388-7790/7710 Fax. 86-532-8388-9370 45 Dalian Branch of STX Pan Ocean (China) Co., Ltd. Room 1916, Liaoning Times Bridge No.7 GangWan Street, ZhongShan Dist, Dalian, China (P/C 116001) Tel. 86-411-8279-8816 Fax. 86-411-8279-8817 46 STX Pan Ocean Shenzhen Office Room 1508, Huarong Building, Min Tian Road, Futian Dist Center, Shenzhen, China Tel. 86-755-8270-6145/6146/6153 Fax. 86-755-8270-6149 47 STX Pan Ocean Xiamen Office Room 0801, 8th Floor The Bank Center, No.189 Xiahe Road, Xiamen, Fujian, China Tel. 86-592-318-8060, 86-268-0533/0633 Fax. 86-592-318-8055 (P/C 361003) | INDIA | 48 STX Corporation Mumbai Office No 34, 3rd Floor, MakerChamber VI Nariman Point, Mumbai 400 021, India Tel. 91-22-6610-2255/6 Fax. 91-(0)22-6610-2277 49 STX Pan Ocean New Delhi Office 552, Near Bank Colony,Devly Village Khanpur, New Delhi-110062, India Tel. 91-11-5155-1873, 91-11-4155-1166 Fax. 91-11-4155-1177/99 | INDONESIA | 50 STX Corporation Jakarta Office Plaza Bapindo Mandiri Tower 23rd floor, JI. Jend Sudirman. Kav. 54-55, Jakarta Selaten 12190 Tel. 62-21-527-8088 Fax. 62-21-527-8089

| JAPAN |

53 STX Global Logix Co., Ltd. 5th Floor, Toranomon1-chome Mori Bldg., 1-19-5 Toranomon, Minato-ku, Tokyo. Japan, 105-0001 Tel. 81-3-5510-1326, Fax. 81-3-5510-1324 | MONGOLIA | 54 STX Mongolia LLC. Citinet Bldg, lkh Toiruu -21, 2nd Sub - District Chingeltei District Ulaanbaatar, Mongolia Tel. 976-7011-0930 Fax. 976-7011-0932 | SINGAPORE | 55 STX Logistics Singapore PTE. Ltd. 8 Shenton Way, #40-03 Temask Tower Singapore 068811 Tel. 65-6579-0101 56 STX Pan Ocean Singapore PTE. Ltd. 8 Shenton Way, #40-03 Temask Tower Singapore 068811 Tel. 65-6461-6210 Fax. 65-6461-6219 57 STX Pan Ocean LNG PTE. Ltd. | TAIWAN | 58 STX Pan Ocean Kaohsiung Office C/O Seastar Kaosiung Shipping Co.Ltd Room 1, 8th Floor No.186 Wangsheng St. Cheng Ging Dist. Kaosiung, Taiwan Tel. 886-7-251-7124 Fax. 886-7-216-4922 | TURKEY | 59 STX Corporation Istanbul Office Uphill Court Twin Towers(Residence) a-B1b-Blok D-22 Barbaros Mah. Dereboyu Cad. 34746 Bati Atasehir, Istanbul, Turkey Tel. 90-216-688-5300 Fax. 90-216-688-5302 | UKRAINE | 60 Damen Shipyards Okean 1, Zavodskaya Sq. 54050 Nikolaev, Ukraine Tel. 38-0512-40-20-30 Fax. 38-0512-40-22-40 | UAE | 61 STX Middle East FZE. PO Box No.262099, LOB#19-1907 Jabel Ali Free Zone, Dubai, U.A.E Tel. 971-4-886-5154 Fax. 971-4-886-5982 | VIETNAM | 62 STX Corporation Hanoi Office 3th Floor, Daeha Business Center 360 Kim Ma St. Ba Dinh Dist, Hanoi, Vietnam Tel. 84-4771-0134 Fax. 84-4-273-0551 63 STX Pan Ocean Hochiminh Office Vinamarine Bldg, 5th Floor, 89 Pasteur St. District 1, Hochiminh City, Vietnam Tel. 84-8-8228-451 Fax. 84-8-8228-254 64 STX Construction Hanoi Office 703,7th Viglacera Tower, Me Tri, Tu Licm, Hanoi, Vietnam Tel. 84-43-553-7891/2 Fax. 84-43-553-7893 65 STX - VINA Heavy Industry Co., Ltd 66 STX Vietnam Offshore Dong Xuyen Industrial Park Rach Dua Ward, Vung Tau City, Vietnam Tel. 84-6461-5600 Fax. 84-6461-5601

OCEANIA | AUSTRALIA | 67 STX Pan Ocean Melbourne Office C/O Inchcape Shipping Services PTY LTD Melbourne Level 2,202A Turner Street Port Melbourne, VIC, 3207, Australia Tel. 61-3-9646-2964/4783 Fax. 61-3-9646-4659