Integrated and Mermaid close to $24m transaction completion

Perth headquartered labour hire and recruitment company Integrated Group Ltd and marine operator Mermaid Marine Australia Ltd have completed due diligence and formal execution of an asset swap transaction announced in October last year.

In October, Integrated entered into agreement to sell its fleet of offshore vessels to Mermaid for $23.8 million, while acquiring Mermaid's manning business for $4.4 million.
Mermaid has already purchased three vessels and will complete the acquisition of a further two vessels before the end of April.

At market close, shares in Integrated had increased 8.5 cents to $1.72, while shares in Mermaid remained at 39 cents.

Below is Integrated's ASX announcement:

Integrated Group Limited (IGL) and Mermaid Marine Australia Ltd (MMA) are
pleased to confirm the completion of due diligence and formal execution of the
asset swap transaction previously announced.

MMA has completed the purchase of marine vessels, Total Constructor, the
Total Provider and the Total Supporter, and subject to completion of IGL's
purchase agreements with outside interests, MMA will also acquire the Total
Endeavour and the Total Resource for a total of $23.8m. Final completion on
the two outstanding vessels is expected before the end of April.

IGL's marine subsidiary, Total Marine Services Pty Ltd (TMS) is a specialised
labour provider and MMA is a large marine operator. TMS has acquired
MMA's manning business for $4.4m. Operating under a 7 year manning
services alliance agreement, both companies will become appreciably more
effective in the areas of their specific expertise. As Australia's largest marine
labour hire operator, TMS will augment MMA's core of senior mariners with
the exclusive right to supply all additional manning to MMA's vessels.

Additionally, IGL has sold the vessel Total Commitment to foreign interests
not associated with the MMA transaction.

The sale of vessels in the above transactions will provide nett cash of $16.6M
which will be used to retire all long term debt and provide additional working
capital. The impact of the `one off' gains was accounted for in previous
earnings guidance announced on 3 April 2006, which is re-confirmed.