Stevedoring Services Ltd. Announces Annual Results For Year Ending 31st March 2005

Hamilton, Bermuda: 10^th August 2005 - Stevedoring Services Ltd. (STVD.BH) has released the following Chairman's Report to the Bermuda Stock Exchange (BSX) for the year ended 31^st March 2005:

"Whilst the financial results for the Company speak for themselves, having outperformed all benchmarks of previous years, fiscal 2005 has been a dramatic year for the Company with events that have driven some necessary changes within the organization and its methods of operation.

A significant driver in the Company's need for change has been the steady increase in the sheer volume of cargo. Container and cargo volumes continue to increase in Bermuda. The simple fact is, for whatever economic drivers one wishes to apply, Bermudian consumption is steadily increasing. From fiscal 1993 to 2003 there was a 42% increase in container volume. This was evidenced by average year on year increases of 4% per annum. The last two fiscal years (2004 and 2005) have seen marked jumps in terms of year on year increases with increases of 6.5% and 7.6% respectively.

We experienced some particularly challenging times during the second quarter of fiscal 2005 when container volumes reached levels that impeded our operating efficiency with broad community impact. As a consequence we were the targets of heavy and harsh criticism coming from the porting community.

Since then, there has been a complete change in senior management with the appointments of a new Chief Executive Officer, Mr. Kenneth L. Joaquin and Operations Manager, Ms. Candy-Lee Foggo. Additionally two other pivotal executive positions were added, a Human Resources Manager and a Project / Information Technology Manager.

Recognising the challenges we are facing, the Company has made a concerted effort to forge a beneficial and strategic allegiance with the Port Workers' Division of the Bermuda Industrial Union. We feel it is a safe statement to make that the relationship between the Company and Union is in a very healthy state, as can be evidenced by the record time in which the 2005 thru 2007 negotiations were conducted - 2 days.

Collectively, we have revamped and improved our operating methodologies resulting in greater efficiencies and customer satisfaction. One of the results of this collaborative approach has been a plan to remove shed 8 and consolidate the LCL operation of the remaining shed 7. This plan has come to fruition early in the first quarter of the 2006 fiscal period. The results have been greater dock capacity, better container handling efficiency and faster inventory turnaround.

Additionally we have formalized an Information Technology strategy that will see the operation upgraded to be on par with most contemporary international terminal operations. It is expected that the Company will have an internet presence to facilitate user needs by the first half of the upcoming fiscal year.

Perhaps the most significant milestone on the immediate horizon is the renewal of our operating license which is due to expire December 31, 2005. Whilst we are guardedly optimistic that the Corporation of Hamilton will see fit to grant us a new license over a period which would permit us to make some notable capital equipment investments in the Company, we are taking nothing for granted. Consequently we are committed to making incremental improvements to the operation to ensure that we are the operator of choice.

Allowing for the renewal of our license, the future for the Company is promising. Whist we see container and cargo volumes plateauing marginally this year with a consequential leveling effect on net earnings, over the long term we expect to see a slow and steady year on year growth thereafter. We are confident that the increased space afforded by the removal of shed 8 will be able to facilitate this growth. Additionally our improved operational methods will ensure that we remain both efficient and effective when dealing with the increased volumes. 

Signed by:

J. Henry Hayward

Chairman