DEVELON

Doosan Group (Chairman Y.H. Park) announced on March 28 that it has decided to award stock options for the second consecutive year to the top management of affiliates who have successfully implemented co-growth with subcontractors. The measure is designed to enable affiliates to recognize the importance of co-development with business partners and to make practical achievements in co-growth.

From January to December last year, Doosan evaluated its affiliates’ achievements in the four areas of co-growth: programs to share competitiveness, financial assistance, joint advance into foreign markets, and enhanced communication, and ranked Doosan Heavy Industries & Construction as the affiliate with the best record in terms of co-growth.

As a result, Doosan has decided to award extra stock options amounting to about 10 percent of their annual salaries to three executives at Doosan Heavy Industries & Construction, including its COO, the executive in charge of co-growth, and the chief of the Castings and Forgings BG. The measure will be submitted for approval at a general shareholders meeting scheduled for March 30.

The stock options are being awarded due to Chairman Y.H. Park’s strong commitment to put into practice co-growth with business partners. In a meeting with affiliate presidents in September 2010, Chairman Park said, “Doosan will monitor progress in the implementation of co-growth each quarter, and reflect the results in its evaluation of top managers’ performance.”

Chairman Park has continuously stressed co-growth with partner companies as an important aspect of corporate social responsibility, and taken the lead in implementing co-growth by visiting subcontractors in person, listening to and resolving any difficulties they face.

Doosan Heavy Industries & Construction is pushing ahead with a plan to cultivate more than 200 subcontractors into “Small Giants” armed with world best competitiveness by the year 2014. Accordingly, the Company formed a taskforce – composed of over 100 experts, including external consultants, internal industrial masters, and quality masters - with the remit of assisting partners in boosting their competitiveness, and is assisting partner companies in improving their productivity and quality and in acquiring quality certification. It is also operating various co-growth programs, including financial assistance, joint advance into foreign markets, and a Win-Win Call Center.