Update on the Jubilee Due Diligence

Tokyo, Jan. 23, 2011

MODEC, Inc. announced today that, further to the request of prospective equity partners in the Jubilee FPSO, MODEC commissioned an independent investigation into its service agreement with its contractor. Following a thorough inquiry into this matter, conducted, over the last five months, by a well recognized law firm specializing in such matters, independently retained for this purpose by MODEC Board, this investigation has found no evidence of any violation of the U.S. Foreign Corrupt Practices Act or any other applicable jurisdiction's anti-bribery laws in relation to its arrangement.

MODEC will provide an update as matters develop. In the meantime, if there is any request for information kindly contact Otori Masayoshi at