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Exclusive Cooperation Agreement between Converteam and DCNS for the development of a new generation POD (INOVELIST)

3 Sep 2007

Converteam, the international developer of systems and customized solutions for the conversion of electrical energy and DCNS, Europe's leading player on the world market for naval defense systems, are pleased to announce that they have entered into a cooperation agreement to jointly develop a new generation POD called INOVELIS™.

This new generation POD – an outboard propulsion solution placed under ship hull – is based on a pump jet concept, which represents a real technological breakthrough, validated by tests.

The validation phase, wich took place during 2005/2006, involved another contributor, BEC (Bassin d'Essais des Carènes) for tests and validation regarding hydrodynamic constraints in addition to DCNS as a mechanical expert.

INOVELIS™ will bring significant advantages in terms of:

* simple technology (the pump jet concept has already been sea proven)
* availability and maintenance
* increased power, smaller size and reduced operating costs (fuel savings.)

"INOVELIS™ combines the benefits of a totally new POD and of Converteam's technologies such as induction motors and PWM electronic drives. The markets targeted by this new POD are cruise liners and ferries and certain heavy carriers such as container ships or LNG tankers" said Pierre Bastid, Converteam President & CEO.

Bernard Planchais, DCNS Executive Vice President & COO, added: "POD represents a strong innovation opportunity for civilian and military ships' architecture and performance. Inovelis Pods will allow us to enrich our product offering and develop onto new markets beyond our traditional perimeter"

About Converteam
Converteam Group is a world leader in power conversion engineering. Building on over a century of experience, it is firmly placed at the leading edge of technology and innovation with a global reputation for excellence in the conversion of electrical energy. Converteam develops and provides solutions built around three core components: rotating machines, drives and process automation. Serving specialized sectors as well as its core markets in Marine & Offshore, Oil & Gas, Energy and Industry, its 3,800 staff members provide power conversion solutions worldwide. At year-end 06, the Converteam sales totaled EUR 686,000,000.

About DCNS
The DCNS group is Europe's leading player on the world market for naval defense systems. To meet customer demands for more comprehensive and integrated systems, DCNS acts as prime contractor for naval shipbuilding, integration and support by combining its own development, marketing and production capabilities with those of selected partners.

To manage the complexity of such projects, DCNS draws on in-house expertise in naval architecture, systems engineering, ship assembly and integration and equipment design and production as well as through-life support. DCNS employs 13,300 people and generates annual revenues of around €3 billion.



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