LEVIS, QUEBEC and OSLO, NORWAY--(MARKET WIRE)--Nov 6, 2008 -- Davie Yards Inc. ("Davie" or the "Company") (Toronto:DAV.TO - News) announced today that it has entered into a loan agreement with Investissement Quebec pursuant to which Investissement Quebec has agreed to provide Davie with a CDN$10 million loan.

The loan, which will be funded in the coming days, has a term of 48 months, bears interest at a rate of 9% per annum and is secured against certain claims and accounts receivable of Davie. The loan is provided under the Strategic Support for Investment Program (PASI), administered by Investissement Quebec.

"We are pleased to see the continued support from Investissment Quebec and the Quebec Government through their PASI-program, and we believe that the Company now is significantly closer to securing the long-term activity at the yard." said Steinar Kulen, the CEO of Davie.

In addition, the Company has amended the existing Loan Agreement with Offshore Holding, increasing the Loan by NOK5.9 million (CDN$1,116,667), all terms according to the original Loan Agreement (as described in press release of 19. September 2008).

Offshore Holding is the controlling shareholder of Davie Holding AS, which holds 71.88% of the common shares of the Company. The loan is a related party transaction for the purpose of Multilateral Instrument 61-101, and the Company is relying on exemptions from the formal valuation and minority approval requirements of Multilateral Instrument 61-101 based on a determination of financial hardship.

About Davie Yards Inc.

Davie Yards Inc. owns and operates the Davie yard in Quebec. With over 180 years of operating experience and approximately 1100 employees, the shipyard is the largest in Canada and among the largest and most sophisticated in North America. The Company has a primary focus on building large and complex offshore service vessels. Its shares are traded on the Toronto Stock Exchange (DAV). News and information are available at www.davie.ca.

Forward-Looking Statements

This news release contains forward-looking information within the meaning of applicable Canadian securities legislation. These statements include those relating to statements that are not historical facts, and reflect the current intentions, plans, expectations and beliefs of Davie's management ("Management"). Such forward-looking statements reflect Management's current beliefs and are based on information currently available to Management. Forward-looking statements involve known and unknown risks, uncertainties and other factors outside Management's control. A number of factors could cause actual results of Davie to differ materially from the results predicted in the forward-looking statements, including, but not limited to, risks associated with a downturn in economic conditions, competition and sensitivity to the oil and gas industry and other factors.

Although the forward-looking statements contained herein are based upon what Management believes to be reasonable assumptions, Management cannot assure investors that actual results will be consistent with these forward-looking statements. Certain assumptions underlying the forward-looking statements contained in this news release include Management's assumptions regarding market outlook for the construction of complex offshore vessels as well as the assumptions that new vessels will be delivered on schedule and that the Company will attract and retain key personnel in key positions. These forward-looking statements are made as of the date of this release, and Management assumes no obligation to update or revise them to reflect new events or circumstances, except as required pursuant to applicable securities laws. Readers are cautioned not to place undue reliance on these forward-looking statements. For additional information with respect to certain of these and other assumptions and risks, please refer to the Company's Management's Discussion and Analysis for Q2 2008 and the year ended December 31, 2007 as well as the Annual Financial Statements for the year ended December 31, 2007, and the Company's Annual Information Form dated March 25, 2008.

     Contacts:
     Davie Yards Inc.
     Steinar Kulen
     CEO
     +47 67 200 300 / +47 901 05 698
     steinar.kulen@davie.no