March 24, 2003
WASHINGTON MARINE GROUP BUYS FAST CATS

Washington Marine Group (WMG) is pleased to announce that it was the successful bidder for the three PacifiCat Ferries at today's auction.

WMG is comprised of several long-established Canadian and International marine companies. Some of these companies, dating back more than one hundred years, make up a large part of the marine history of British Columbia and Canada. WMG is primarily involved in coastal and deepsea transportation, ship repair and shipbuilding. The company operates a fleet in excess of 300 vessels around the world.

While no specific plan is developed for the PacifiCats, WMG has been evaluating a number of different concepts for the vessels future and will now, as the successful bidder, be proceeding with detailed analysis of the potential options. Examples of these concepts include re-sale and long term time or bareboat charter. It is worth noting that for virtually any potential use of the PacifiCats, substantial modifications or refitting of the vessels will be required. It is WMG's intention that these modifications will be performed in BC Shipyards.

For the time being, the vessels are being held in inventory until a specific plan is finalized.