Davie Yards ("Davie" or the "Corporation") is glad to announce that it has sold
its assets to a wholly-owned subsidiary of Upper Lakes Group ("Upper Lakes"),
which intends to operate the shipyard in cooperation with SNC Lavalin Defence
Contractors ("SNC") and Daewoo Shipbuilding and Marine Engineering ("DSME").
This transaction, approved by the Quebec Superior Court (the "Court"), will
allow the Levis shipyard to submit a bid on July 21st under the National
Shipbuilding Procurement Strategy ("NSPS").


"We have deployed tremendous efforts to close a deal under enormous pressure,
and we are happy that we have been able to sell the yard to a credible buyer
who, together with its partners, can ensure a viable future for the yard" said
the President and CEO of Davie, Mr. Gustav Johan Nydal. He continued, ''this is
good news for our workers and for Quebec since an active yard will ensure
significant employment and will have a positive economic impact which will be
further enhanced if the yard is selected under the NSPS ." 


"We would like to thank the Quebec government for its continued support during
our restructuring process, as well as our employees and partners for their
patience and cooperation during these tough times", concluded Mr. Nydal.


Davie also obtained today an order from the Court extending the stay of
proceedings ordered by the Court to July 29, 2011, the whole pursuant to the
Companies' Creditors Arrangement Act ("CCAA").


About Davie Yards Inc. 

Davie Yards Inc. owns and operates the Davie yard in Quebec. With over 185 years
of operating experience, the shipyard is the largest in Canada and among the
largest and most sophisticated in North America. The Corporation has a focus on
building large and complex offshore service vessels and rigs, and other
sophisticated vessels for commercial and governmental use. www.davie.ca


Forward-Looking Statements

This news release contains forward-looking information within the meaning of
applicable Canadian securities legislation. These statements include those
relating to statements that are not historical facts, and reflect the current
intentions, plans, expectations and beliefs of Davie's management
("Management"). Such forward-looking statements reflect Management's current
beliefs and are based on information currently available to Management.
Forward-looking statements involve known and unknown risks, uncertainties and
other factors outside Management's control. A number of factors could cause
actual results of Davie to differ materially from the results predicted in the
forward-looking statements, including, but not limited to, risks associated with
the Corporation's current restructuring under the CCAA, fiscal results, working
capital requirements, major disruptions of production, a downturn in economic
conditions, competition and other factors.


Although the forward-looking statements contained herein are based upon what
Management believes to be reasonable assumptions, Management cannot assure
investors that actual results will be consistent with these forward-looking
statements. Certain assumptions underlying the forward-looking statements
contained in this news release include Management's assumptions regarding its
current restructuring process under the CCAA, the risks associated with the
NSPS, the market outlook for the construction of complex offshore vessels as
well as the assumptions that new vessels will be delivered on schedule and that
the Corporation will attract and retain key personnel in key positions. These
forward-looking statements are made as of the date of this release, and
Management assumes no obligation to update or revise them to reflect new events
or circumstances, except as required pursuant to applicable securities laws.
Readers are cautioned not to place undue reliance on these forward-looking
statements. For additional information with respect to certain of these and
other assumptions and risks, please refer to the Corporation's Management's
Discussion and Analysis for quarter ended September 30, 2009 and the year ended
December 31, 2008 as well as the Financial Statements for the quarter ended
September 30, 2009 and the year ended December 31, 2008, and the Corporation's
Annual Information Form dated March 29, 2009.
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