Negros Navigation Company, Inc. >>> Message from the Chairman

Official Joint Press Release from
Negros Navigation and Aboitiz Transport System

NN MAKES MAJOR INVESTMENT

(Manila, 01 December 2010) – Negros Navigation Co, Inc., (“Nenaco” or the “offeror”) a domestic shipping company, announced today that it has entered into an agreement with Aboitiz Equity Ventures, Inc. and Aboitiz & Co., Inc., being the controlling shareholders of Aboitiz Transport System Corporation (“ATS”), under which it intends to acquire up to 100% of the outstanding common shares of ATS and commence a tender offer in the Philippines for all such common shares, for the Peso equivalent at closing of US$105 million apportioned in cash for each ATS share.

This values the entire share capital of ATS at approximately P 4.6 billion. The transaction and the tender offer will be subject to standard terms and conditions, including, but not limited to, the making of any necessary government filings, regulatory approvals and the tender of at least 93.2% of ATS’ common shares. The purchase of ATS shares is expected to be funded with equity investments in Nenaco from China-ASEAN Marine B.V., a Netherlands incorporated B.V.

Nenaco intends to file with the Securities and Exchange Commission (the “SEC”) a Tender Offer Report under SEC Form 19-1 containing an offer to purchase, forms of letters of transmittal and other documents relating to the tender offer. Nenaco and ATS intend to provide these documents to the shareholders of ATS.

With over 200 years of combined experience, the acquisition brings together two well-established and respected names in the Philippines domestic shipping industry. Nenaco currently operates eight vessels and serves 13 ports of call. ATS, the owner and operator of Superferry, 2GO, Cebu Ferries and Supercat, operates 18 vessels, a combination of ro-pax, fast ferries and freighters, and has 19 ports of call.

“With a strong balance sheet, the joint team is confident that the increased resources of the combined company will enable us to provide innovative services, enhanced frequency and improved customer care to our valued passengers and freight, logistics and supply chain customers,” said Sulficio O. Tagud, Jr., Chief Executive Officer and Chairman of Nenaco.

“This is clearly a positive development for the industry and Philippine business as a whole,” commented Enrique M. Aboitiz, Jr., President and Chief Executive Officer of ATS.

Apart from being the most efficient operator of fast craft, the combined company will offer a full range of value-added logistics services. These 3PL (third-party logistics) services will be a boon to Philippine businesses involved in retail and the distribution of imported and locally produced products. The portfolio of multimodal services to be offered by the combined company will include the management of lead-time sensitive cargo, cold chain management of temperature-controlled goods and both domestic and international courier services.

The combined company is highly committed to partnering with businesses and government agencies in the development of our country’s transportation needs.

-END-

About Negros Navigation Co., Inc.
Negros Navigation Co., Inc. (“NENACO” or “NN”) is one of the oldest domestic shipping companies in the Philippines. It was organized and registered with the Securities and Exchange Commission (SEC) on 26 July 1932 for the purpose of transporting passengers and cargo at various ports of call in the Philippines.

For the past decades, NENACO led the domestic shipping industry in pioneering programs focused on continuously elevating the quality of shipping services and in the 60’s, NENACO was first among the domestic shipping companies to operate brand new, fast and luxurious air-conditioned passenger ships. A decade later, it constructed a modern passenger terminal in Manila’s North Harbor and was a pioneer in offering special cruises to Philippine tourist spots.

More recently, NENACO launched its containerization program and ushered a new industry trend in the use of Roll-on/Roll-off ("RORO") vessels and became the first Philippine shipping company to be listed on the stock exchange. The NENACO brand is synonymous with innovation and has devoted significant effort in improving the level of service and customer care to domestic ferry users.

About Aboitiz Transport System (ATS) Corporation
ATS is an integrated transport solutions provider in the Philippines. Its principal business units are engaged in the movement of people operating under brand names "SuperFerry", "SuperCat", and "Cebu Ferries", and the movement of cargos operating under the brand name "2GO". The company’s array of services geared towards cargo movements includes containerized, roll-on roll-off (RoRo) services, international and domestic courier business, logistics , supply chain solutions. ATS also provides ship management and manpower solutions worldwide under the Aboitiz-Jebsen group of companies.

ATS’ history dates back over a hundred years ago when 2 Basque traders bought their first ship to support their growing abaca trading business. Officially incorporated in 1952 Aboitiz Shipping Corporation (ASC ) as it was called then operated passenger-cargo ships between Cebu and the nearby islands .By the mid seventies , ASC modernized the domestic shipping industry with the introduction of containerization , a faster and more efficient way to move products . The Superferry Brand of passenger sea travel was introduced in the early nineties, thereby once again raising the standards in passenger comfort and convenience.

On December 21, 1995, ATS consolidated its resources and expertise with two other Cebu based companies, namely, William Lines Inc and Carlos A. Gothong Lines, Inc.. This marked the birth of William, Gothong & Aboitiz, Inc. (WG&A). In 2002, Aboitiz Equity Ventures, Inc. (AEV) acquired the combined holdings of the Chiongbian and Gothong Group. Subsequently, the Company changed
its registered corporate name from WG&A to its present one, which the Securities and Exchange Commission (SEC) approved in February 2004.

About China-ASEAN Marine B.V.
Incorporated in the Netherlands, China-ASEAN Marine B.V. is a wholly owned subsidiary of China-ASEAN Investment Cooperation Fund (CAF). CAF is a private equity fund sponsored by the China Export-Import Bank. CAF targets investment opportunities in the 10 ASEAN countries, focusing on infrastructure, energy and natural resources. With the ultimate goal of enhancing trade flows and interconnectivity among China and ASEAN nations, the initiative for the Fund was announced by Chinese Premier Wen Jiabao in 2009.

Additional Information
The tender offer described in this announcement has not yet commenced. This news release does not constitute an offer to purchase or a solicitation of an offer to sell common shares of ATS. The tender offer will be made solely by the formal offer documents and the related form of acceptance accompanying such and shareholders of ATS are urged to read them carefully when they become available. Shareholders of ATS will be able to obtain a free copy of these documents (when they become available) and other documents filed by ATS with the SEC. In addition, copies of the tender offer statement and related materials may be obtained for free (when they are available) by directing such requests to the relevant agents to be appointed for the tender offer.

The transaction is expected to be completed within 30 days from the commencement of the tender offer, subject to the fulfillment of regulatory and other conditions as well as the requirements applicable to the conduct and closing of the tender offer.

Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements. Words such as "expects," "believes," "intends, "will," "estimates" and similar expressions identify such forward-looking statements. These are statements that relate to future events and include, but are not limited to, statements related to expanding our service delivery capabilities. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in these forward-looking statements. These risks and uncertainties include, but are not limited to, our ability to manage growth, intense competition in the industry including those factors which may affect our cost advantage, fuel or wage increases, our ability to attract and retain customers, client concentration, the underlying success of our clients and the resulting impact of any adverse developments in our clients' business.

Certain additional factors could affect the outcome of the matters described in this press release. These factors include, but are not limited to, (1) the occurrence of any event, change or other circumstances that could give rise to the termination of the acquisition agreement; and (2) the inability to complete the offer due to the failure to satisfy conditions required to complete the offer. Many of the factors that will determine the outcome of the subject matter of this press release are beyond the offeror’s or other parties’ ability to control or predict. Neither the offeror or any of the parties mentioned in this press release undertakes any obligation to revise or update any forward-
looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

The availability of the offer to any ATS shareholders who are not a citizens or residents of the Philippines may be affected by the laws of the relevant jurisdictions in which they are located and/or of which they are citizens. Such persons should inform themselves of and observe any applicable legal or regulatory requirements of their jurisdictions.

Statements included in this release are based upon information known to ATS as of the date of this release, and ATS assumes no obligation to update information contained in this press release.

Contact Information

NN-ATS Media Desk
Negros Navigation:
Gian Galvez: Gian.negrosnavigation@gmail.com
ATS
Jay-Anne Encarnado: Jayanne_Encarnado@atsc.com.ph

Phone : + 632 5276461
+ 632 3386474
+ 632 5272698
Fax + 632 5275270

MESSAGE FROM THE CEO AND CHAIRMAN OF NEGROS NAVIGATION

I am happy to announce that ATS and Negros Navigation have joined hands to create one company with a combination of assets and people that will enable the new business to better serve its passenger and cargo customers with a wider and more interesting range of services to more locations.

The vision is within our capability and reach, but integrating the two businesses will take time as we have to combine our people, financial resources and assets in order to establish one successful corporate entity. The new business will be stronger, more reactive to market needs and will provide opportunity for employees at all levels to develop and advance their careers.

None of this can be achieved however without your full support and therefore throughout the integration process we will work closely with you listening to your ideas and proposals in order to make this integration a successful process for all concerned.

Changes will be necessary and not all may be entirely positive in all cases, but whatever change we find necessary will be arrived at after a process of full consultation, open communication and above all, fairness.

Our aim is to provide a working environment in which people will thrive and advance their careers in tandem with the business of the company and the aspirations of the shareholders. One of the first things you will witness early in the New Year will be an increased emphasis on safety and training to cover all aspects of our trade in order to build a safe, efficient and cost effective company with the most skillful and competent workforce in the transportation business.

In a sincere spirit of openness and participation we would like to hear from you, and in particular listen to your thoughts and ideas and even, if you have any, your concerns with the integration.

The opportunity for our business and the domestic ferry industry has never been greater. Please grasp it with both hands and help to build a combined organisation with your newfound colleagues in ATS that will be an example to others.

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