Fairmount Heavy Transport NV Page 1 of 4 First Quarter 2006

FAIRMOUNT HEAVY TRANSPORT NV

MANAGEMENT BOARD REPORT

FIRST QUARTER 2006

The Management Board is pleased to present

Fairmount Heavy Transport’s First Quarter 2006

Report.

Operations

After a swift voyage, the Company’s first transport

was successfully completed when the jack-up drilling

rig TRIDENT IV was discharged offshore Malabo,

Equitorial Guinea. After discharge, FAIRMOUNT

FJELL was mobilised under tow of SEMCO’s 165

tonnes bollard pull tug SALVISGUARD to Malaysia

for the barge’s next assignment, the transport of the

AMP2 topside to the Amenan field, offshore Nigeria.

Loading of the topside will start in the first week of

May. FAIRMOUNT FJELL is now in Malaysia

awaiting loading.

FAIRMOUNT FJELL under tow by SEMCO tug

Conversion of the barges to vessels

In March the Company entered into two ship

conversion contracts with Malta Shipyards Ltd for the

conversion of the FAIRMOUNT FJORD and

FAIRMOUNT FJELL from semi-submersible barges

to self-propelled heavy lift vessels.

The FAIRMOUNT FJORD is currently already in

Malta. The FAIRMOUNT FJELL will be delivered to

the yard upon completion of the present AMP2 topside

transportation and float-over project, expected to be

end September 2006. The contractually agreed

completion date of the conversion is 30 November

2006. The conversion period of FAIRMOUNT FJELL

planned to take five months.

The total project cost of the conversion of both vessels

will be just over USD 80 million. The Company’s

lender, HSH Bank, has extended its loan facility to

cover the majority of the difference from the original

budget. The balance of the cost increase is planned to

be covered by cash from operations and subordinated

debt and/or equity.

As previously reported, the Company has chosen to

complete the basic engineering of the conversion prior

to selecting a conversion yard. This strategy has

enabled conversion yards to submit firm proposals,

limiting exposure to cost escalation during conversion

due to incomplete engineering detail. Based on the

engineering and model tests made to date, the

Company has made several design improvements to

the vessels. These improvements will provide the

Company with significant advantages, such as largely

fixed prices for the conversions, increased speed

through optimising the location of the thrusters and

annual cost savings of USD 2.5-3.0 million in fuel

costs based on current bunker cost.

Test runs of the various components of the propulsion

packages, ordered from Wärtsilä / Imtech, are

presently being held and all equipment is expected to

be delivered on time.

Supervision team in place

The Supervision team, led by Fairmount Marine’s

Fleet Manager, a has been set up to supervise the

entire conversion process. Members of the team

include highly experienced Chief Engineers who, after

completion of the conversion, will sail on the vessels.

Team members will be located at the shipyard during

the entire conversion work.

Marketing

The Company’s Manager, Fairmount Marine B.V.

have a very strong position in the (offshore) market

thanks to their market leadership in ocean towage and

heavy lift transportation. The FAIRMOUNT FJORD

and FAIRMOUNT FJELL are currently actively being

marketed and promoted. Quotations and tenders based

on the converted vessels are now being made on a

daily basis.

At the forthcoming Offshore Technology Conference

(OTC) in Houston, Fairmount will be represented with

its own booth and staff to promote the vessels.

Response from the market is extremely favourable and

the vessels are welcomed to the market by the

customers with great anticipation.

Annual General Meeting of Shareholders

The Company held its Annual General Meeting

(AGM) on 27 March 2006. Philip Adkins and Leif

Aaker were appointed on the Supervisory Board.

Fairmount Heavy Transport NV Page 2 of 4 First Quarter 2006

FAIRMOUNT FJELL with TRIDENT IV on deck

Management Board and Supervisory Board

On 5 April 2006, the Company’s Chairman of the

Supervisory Board, Sjef van Dooremalen, resigned for

personal reasons. In addition, Frederik Steenbuch, a

member of the company’s Management Board also

resigned for private reasons.

The Management Board now consists of Henk van den

Berg, Albert de Heer and Cristijn du Marchie Sarvaas.

The Supervisory Board consists of Willem

Dirkzwager (Chairman), Philip Adkins, Hans

Verhagen and Leif Aaker.

The Company is expected to submit a number of

changes in the future composition of its Management

Board to shareholders at an EGM currently expected

to be held around 15 May 2006.

Financials results

Although the Company's financials for the 1st Quarter

2006 do not in any way represent future earnings once

the vessels are converted, the unaudited 1st Quarter

results are attached. The Company reports its

financials according to IFRS.

Listing at the Oslo Stock Exchange

The Company promised investors that it would seek to

list the Company on the Small and Medium Sized

Companies (SMB) list at the Oslo Stock Exchange

(OSE). The Company took necessary steps in this

direction but withdrew its application in March. Once

the personnel changes to be proposed for the EGM in

May, have been considered by shareholders, the

Company intends to re-apply to the Oslo Stock

Exchange for a full listing.

Prospects

The company is of the opinion that its future prospects

remain very favourable. This opinion is based on the

health and prospects of the offshore oil- and gas

industry, the favourable reception of the vessels in the

market, the quality, standing and market position of

the managers, Fairmount Marine B.V. in the world-

wide offshore market and on the positive attitude of

shareholders and financers towards the company. The

company aims to improve shareholder relations even

further based on complete accountability and

transparency. In that respect, the Company has taken

certain measures to achieve this.

Partially submerged barge awaiting loading

Rotterdam, The Netherlands, 20 April 2006

Management Board of Fairmount Heavy Transport NV

For more information: please contact Henk van den Berg, Chairman, +31-10-405 1290

Fairmount Heavy Transport NV Page 3 of 4 First Quarter 2006

Fairmount Heavy Transport N.V.

First Quarter 2006

Condensed Balance Sheet 31 March 2006 31 December 2005

USD1,000 USD1,000

ASSETS

Fixed assets 59,695 54,766

Currents assets 3,216 3,134

TOTAL ASSETS 62,911 57,900

LIABILITIES

Long term liabilities 13,985 5,879

Current liabilities 3,891 6,144

Equity 45,035 45,877

EQUITY & LIABILITIES 62,911 57,900

Income Statement 1st Quarter 2006 2005

USD1,000 USD1,000

Gross revenue 2,173 1,905

Voyage related costs 1,774 2,385

Time charter equivalent 399 -480

Vessel operating expenses -315 -664

G&A -462 -657

Operating expenses, other than depreciation & amortisation -777 -1,321

EBITDA -378 -1,801

Depreciation -462 -711

Operating loss before financing costs -840 -2,512

Net financing costs -2 123

Loss before tax -842 -2,389

Income tax - -

Loss after tax -842 -2,389

Weighted average number of ordinary shares 30,000,000 26,154,545

Basic earnings per share -0.03 -0.09

Diluted earnings per share -0.03 -0.09

Condensed Cash flow Statement 1st Quarter 2006

USD1,000

Loss after taxation -842

Depreciation/Amortisation 462

Cash flows from operating activities -380

Changes in working capital 810

Net cash from operating activities 430

Net cash from investing activities -9,399

Cash flow from financing activities 8,106

Net increase in cash and cash equivalents -863

Cash and cash equivalent as per opening balance 1,427

Cash and cash equivalents at 31 december 2005 564

Statement of recognised income and expense 1st Quarter 2006

USD1,000

Net expenses recognised directly in equity 0

Loss for the period -842

Total recognised income and expenses for the period -842

Attributable to Equity holders -842

Fairmount Heavy Transport NV Page 4 of 4 First Quarter 2006

Notes

Unaudited figures

This quarterly financial information has not been audited

Comparative information

The first quarter financial report does not provide comparative interim information

for the first quarter of 2005, because the Company was established in July 2005.

Statement of compliance

The interim financial information have been prepared in accordance with IAS34.

Condensed format

The interim financial information is prepared in a condensed format, omitting most disclosures that

are required to comply with IFRS's when publishing a full set of financial statements, based on the

assumption that prior year financial statement have been filed and that accounting principles

have not been changed since then.

Interest-bearing loan

This refers to a loan agreement with the HSH Nordbank for MUSD 60 with a repayment schedule of eight

years with a 12 year profile and an interest rate of LIBOR plus a margin. The loan also includes a

MUSD 5.0 revolving credit facility. The loan is secured by a registered debenture on the barges.

In addition, FHT received a firm offer from HSH Nordbank for an additional loan facility of MUSD 16.

Equity

Statement of changes in equity Total

USD1.000

Movements in the first Quarter 2006 were:

Balance sheet as at 31 December 2005 45,877

Result for the period 0

Balance sheet as at 31 March 2006 45,877

Capital commitments

As per 31 March 2006, the Company has entered into contracts with total capital commitment amounting

to MUSD 40 which have not been included in the balance sheet as per 31 March 2006.

These capital commitments will be financed through the long term loan.