MODEC Announces MODEC Ichi-ban Revolution: Re-structuring of Worldwide Functional Organization

Tokyo, Dec. 4, 2006

MODEC, Inc. today announced a re-structuring of its worldwide functional organizations. Termed as the "MODEC Ichi-ban Revolution", the restructuring is aimed at leveraging MODEC's resources into a single functional organization, so as to undertake more projects and operations, while increasing its focus on HSE, Integrity Management, deliverability, and operability.

Under the revised organization, worldwide operations and ownership of the FPSOs will report to Mr. Nobuhiro Yaji, Chief Operating Officer of MODEC, Inc. in Tokyo, Japan. Also reporting to Mr. Yaji will be MODEC's recent acquisition of SOFEC Mooring Terminals.

Reporting to Mr. Shashank Karve, President and CEO of MODEC International LLC will be Global Projects Execution and Worldwide Sales and Marketing. The Global Projects Execution group will draw resources from MODEC's centers of project management and engineering in Houston, Tokyo and Singapore.

Mr. Yaji and Mr. Karve will both report to Mr. Kenji Yamada, President and CEO of MODEC, Inc. In addition, reporting to Mr. Yamada will be the corporate HSE group, Contracts and Risk management, Corporate Quality and Integrity Management, and Global IT services.

"Executing and managing our business in a global seamless organization is essential for MODEC to compete and grow. This re-structuring will allow us to leverage our worldwide resources in a more efficient manner enabling us to undertake more projects, in this strong market. MODEC's product range of FPSO, FSO, TLP and semi submersible systems for development of deepwater and remote oil and gas discoveries continue to enjoy a strong market demand." stated Mr. Yamada.