Compania Sud Americana de Vapores SA : Capital Increase: Results of the first stage - Jan 17th 2012 (Available in Spanish only)

INFORMATION OF INTEREST

in respect of COMPAÑÍA SUD AMERICANA DE VAPORES S.A.

Securities Registry No. 76

**************** SAAM advances from first stage in negotiations with SMIT

Both parties have agreed to valuate SAAM´s port tug boat business in America in
USD 520 million versus USD 470 million for SMIT.
Should the joint venture close, these companies would be the leaders in the growing American tug boats market, with important growth potential in the activities of maritime support to the oil industry in said continent.

Santiago, December 2, 2011.- Compañia Sud Americana de Vapores S.A. (CSAV) announced today that its subsidiary Sudamericana Angencias Aereas y Maritimas S.A. (SAAM), after signing a memorandum of understanding, continues to make progress in the negotiations to materialize an association in equal parts in the tug boats business with SMIT, a subsidiary of the Dutch company Boskalis and the second most important player in the world in this business.

SAAM, stand alone, is currently the first operator in America and fourth world wide in the tug boats area. Upon closing the joint venture, these companies would lead the market in the American continent operating initially a fleet of 150 leading technology tug boats.
During this first stage, fundamental points were agreed allowing the process to continue. Among them, it can be highlighted the definition of the strategy, the businesses and assets that will be incorporated in the association, in addition to the organizational structure which would be implemented in the company (board of directors and officers) and the valuation of the contributions to be made by the respective companies.
In the framework of this first phase, both parties have agreed to valuate SAAM´s port tugboat business in America in USD 520 million versus USD 470 million for SMIT, subject to due diligence process.
With these understandings, the first stage of the negotiation between the companies has finalized. Notwithstanding, a binding agreement for both companies to combine their operations has not yet materialized, and whatever is agreed will remain subject to the ratification of the respective boards of directors and/or shareholders meetings.
SMIT is one of the leading operators in the market of port tugboats services and the first salvage operator in the world. It has 170 years of experience in providing global maritime services and owns a fleet of more than 150 vessels deployed in seven countries worldwide. In 2010 it was acquired by the Dutch firm Royal Boskalis Westminster.

FORWARD LOOKING STATEMENTS THIS DOCUMENT CONTAINS FORWARD LOOKING STATEMENTS. FORWARD LOOKING STATEMENTS ARE NOT CONCRETE FACTS, AND INCLUDE DECLARATIONS ON POINTS OF VIEW AND EXPECTATIONS. FORWARD LOOKING STATEMENTS IMPLY INHERENT RISKS AND UNCERTAINTIES. A NUMBER OF IMPORTANT FACTORS COULD CAUSE THE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN ANY FORWARD LOOKING STATEMENT.