New Container Terminal-1

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Subic Bay International Terminal Corp. was awarded a concession on a rehabilitate, operate and transfer basis for 25 years for the New Container Terminal-1 (NCT-1) at Subic Bay Freeport in Zambales province on Sep. 30, 2007. The NCT-1 was constructed by Subic Bay Metropolitan Authority (SBMA) between 2004 and 2007 in accordance with the SBMA Port Master Plan and the Subic Bay Port Development Project. SBITC took over NCT-1 operations on April 2, 2008. The project was undertaken by Subic Bay International Terminal Corp., a joint venture of Subic Bay International Terminal Holdings (85%) and Subic Bay Metropolitan Authority (15%). In turn, the shareholders in Subic Bay International Terminal Holdings were ICTSI(83.33%) and Royal Port Services (16.67%). This corresponded to an effective ownership share in SBITC of 71% for ICTSI and 14% for Royal Port Services. The concession contract was put out to tender in the first half of 2007. As the operator of the Subic Bay Terminal located at the adjacent Navy Supply Depot, ICTSI's bid for NCT-1 was allowed to be challenged by other bidders. However, under the terms of the bidding process, as long as ICTSI was prepared to match the highest bid received, it was entitled to the concession. The tender process closed on June 18, 2007, with ICTSI as the sole bidder. An estimated investment of US$ 10 million was to be undertaken during the 25-year contract period to maintain NCT-1 as a common-user, multi-purpose terminal with capacity of 300,000 TEUs per annum. Investment commitment of US$10 million was calculated using the IMF IFS 2008 annual average exchange rate of US$1 = P47.485, where the announced commitment was P473 million.