MODEC Awarded FSO for Rang Dong Field, Offshore Vietnam

Tokyo, Jul. 14, 2006

MODEC, Inc. (TSE:6269) announced today that the signing of a contract has been executed with Japan Vietnam Petroleum Co., Ltd. (JVPC) which is a group company of Nippon Oil Corporation for the supply and operation of a Floating Storage and Offloading (FSO) vessel for JVPC's Rang Dong field offshore Vietnam. JVPC is operating in the Rang Dong field jointly with ConocoPhillips (UK) Limited Vietnam and PetroVietnam Exploration and Production Company.

The Rang Dong field is located approximately 135 kilometers southeast of Vung Tau on Block 15-2. The FSO is planned to be installed in approximately 60 meters water depth and is designed to have receiving capacity of 60,000 barrels of oil per day and storage capacity of 350,000 barrels.

MODEC is responsible for the engineering, procurement, construction, installation, commissioning and operations of the FSO, including the external turret mooring system.

The oil production from the Rang Dong field is expected during the third quarter of 2008. MODEC will own and provide FSO operation services for the Rang Dong field for an initial nine year period with the option of one year extensions for a further five years.