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December 9, 2005

Maritrans to raise $73.1 million

Maritrans Inc. (NYSE:TUG) says that it has entered into an agreement to sell 3 million shares of its common stock in a registered offering.

Maritrans will receive proceeds of approximately $73.1 million, net of fees and other expenses related to the transaction. The net proceeds from the offering will be used to repay the amount outstanding under Maritrans' revolving credit facility, to finance a portion of the constructions costs associated with the company's double-hull rebuilding program and three new articulated tug-barges and for general corporate purposes.

The sole book-running manager for the offering is UBS Investment Bank. Merrill Lynch & Co. is the joint lead manager for the offering and the co-managers are Cantor Fitzgerald & Co. and Morgan Keegan & Company, Inc.

Subject to normal closing conditions, Maritrans has also granted the underwriters an option to purchase up to an additional 450,000 shares of common stock on the same terms to cover over-allotments. This option is exercisable within thirty days after the pricing of the offering.