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2 more tankers ordered (10/4)

Aker American Shipping ASA and SIU-contracted Overseas Shipholding Group have announced an agreement to build two more Veteran Class tankers at Aker Philadelphia Shipyard. The press release appears below and also is available on the shipyard’s web site HERE Aker American Shipping ASA and Overseas Shipholding Group, Inc. Announce Definitive Agreement for Two Additional Tankers PHILADELPHIA, PA (October 3, 2007) – Aker American Shipping ASA and Overseas Shipholding Group, Inc. (OSG) announced today that they have signed an agreement pursuant to which Aker Philadelphia Shipyard, a subsidiary of Aker American Shipping, will construct two additional Veteran Class MT-46 Jones Act Product Tankers and transfer them to another subsidiary, American Shipping Corporation, which will bareboat charter the vessels to subsidiaries of OSG for initial terms of 10 years. For Aker American Shipping the full transaction is valued in excess of $240M (before profit sharing) reflecting the higher rates and longer terms. The agreement is subject to relevant government approvals. As part of this agreement, the February 7th 2007 Agreement in Principle for three fixed plus three option vessels has expired. Aker American Shipping President and CEO Dave Meehan stated, “We are proud to be expanding our fleet from 10 to 12 tankers, and excited for the opportunity to continue exhibiting our expertise in constructing quality merchant vessels. These modern ships are vital to the US Jones Act and we are eager to deliver them to an expanding market in need of quality, double-hulled vessels.” The series of now twelve MT-46 Product Tankers is continuing with two tankers delivered and an additional four vessels under construction at the yard. The third tanker is scheduled for delivery before the end of the year. ###