Proposed Bonus Issue Of Shares

The Board of Directors of Samudera Shipping Line Ltd (the "Company") is pleased to announce that the Company is proposing a bonus issue of up to 89,855,200 new ordinary shares of S$0.10 each in the capital of the Company ("Bonus Shares"), on the basis of one (1) Bonus Share credited as fully paid for every five (5) existing ordinary shares held by the shareholders of the Company ("Proposed Bonus Issue").

The Bonus Shares, when allotted and issued, will rank pari passu in all respects with the existing ordinary shares of S$0.10 each in the capital of the Company. The actual number of Bonus Shares that will be issued by the Company will depend on the total issued share capital of the Company as at book closure date. Fractional entitlements will be disregarded and disposed of in such manner as the directors may in their absolute discretion deem fit.

The Proposed Bonus Issue will be effected by capitalizing up to $8,985,520 from the share premium account of the Company and applying the same towards payment in full at par for the Bonus Shares to be issued. Notice will be given at a later date on the closure of the transfer books and register of members of the Company for the purposes of determining shareholders' entitlements to the Proposed Bonus Issue.

The Proposed Bonus Issue is subject to the approval of the Singapore Exchange Securities Trading Limited ("SGX-ST") for the listing and quotation of the Bonus Shares on the official list of the SGX-ST ("Listing"). The Company will be making an application to the SGX-ST for the Listing of the Bonus Shares in due course.

By order of the Board


Submitted by
Anwarsyah, Executive Director
on 28/12/2005 to the SGX