Broström expands further in Asia

Broström expands further in Asia

Broström has entered into an agreement for the acquisition of the Petroships
Group, a group of companies in Singapore and Malaysia operating a fleet of nine
small and intermediate size product tankers in Southeast Asia.

Broström has been present in Asia since 1998 and gradually built up a product
tanker operation based on vessels in the 40,000 to 50,000 dwt range from its
office in Singapore. As of today Broström operates a fleet of eleven such
vessels with a further three newbuildings to be delivered within the next year.

In the process of further developing Broström's business in Asia the company has
explored possibilities for building on the experiences earned over long time in
the European small and intermediate petroleum product trade operating with
transportation contract relationships with major oil companies. Broström has
identified the Petroships Group as an interesting acquisition for entering into
this particular segment in the Southeast Asian market.
Petroships was incorporated in Singapore in 1975 and has built up long-term
customer relationships with major oil companies in Asia with strong emphasis on
operational quality and safety. The company presently operates a fleet of nine
tankers from 5,000 to 16,500 dwt with an average age of nine years. Net sales
last year for the business carried out were corresponding to a total of USD 45
m. The company has 270 employees including 220 onboard crews and officers. The
present majority shareholder Mr Alan Chan will retain a minority stake in some
of the Petroships' companies and will continue to be represented on the Board of
Directors of Petroships together with the Broström representatives.

“The acquisition of Petroships will give Broström a good platform from which we
can continue building up the small and intermediate segment in this very
interesting part of the world”, says Lennart Simonsson, CEO of Broström.

“After having been closely involved in Petroships over a period of more than 30
years I have been very much concerned about evaluating the right future owner of
the company in order to guarantee the continuation in providing high quality
logistics services. Together with my partners I have come to realise that
Broström shares our long-term views and values in the way we like to operate our
business. Petroships is clearly synergistically complementary to Broström. We
are gratified with the thought that our mutual clients will benefit from
enhanced service in time to come”, says Alan Chan, Chairman of Petroships.

Broström's acquisition of the Petroships Group is expected to add about SEK 200
m in group net sales on an annual basis deriving from the five acquired fully
owned vessels. The contribution from the three partly owned vessels will only be
accounted for as results from associated companies. Overall the acquisition is
expected to give a positive contribution to group net results and returns as
from 2007.
Göteborg, 29 May 2007

BROSTRÖM AB (publ)

Reference: Lennart Simonsson, CEO of Broström, Tel +46 31 61 61 00




Invitation to press conference

Media and analysts are invited to a press conference at which Broström's
acquisition of Petroships will be further presented, with comments by Lennart
Simonsson, CEO of Broström.

The press conference is being held on 30 May, 2007 at 10.00 CET at Grand Hotel,
Stockholm.
For participation please send a message to lisbeth.ek@brostrom.se or call +46 31
61 61 37 before 8.30 CET on 30 May, 2007.

Welcome.




Broström is one of the leading logistics companies for the oil and chemical
industry, focusing on industrial product and chemical tanker shipping and marine
services. Broström is based worldwide, with head offices in Göteborg, Sweden.