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October 29, 2005

Another milestone for Aker Philadelphia

Aker Philadelphia Shipyard (formerly known as Kvaerner Philadelphia Shipyard) has taken a significant step forward in the construction of the first of ten new, 46,000 dwt double-hulled product tankers with the installation yesterday of the first massive section of the ship's keel.

The first section of Aker Philadelphia Shipyard's new tanker ship was set in the drydock in a keel laying ceremony at the yard.

The first ship in the ten ship program is expected to be delivered by the end of 2006, with the final vessel scheduled for completion in 2010. The product tankers will be owned by American Shipping Corporation, a subsidiary of Aker American Shipping, and chartered to Overseas Shipholdng Group, Inc (NYSE: OSG).

Dave Meehan, President and CEO of Aker Philadelphia Shipyard said, "The keel laying represents a noteworthy achievement in the construction of any vessel, and today it also represents a major milestone in our entire ten ship tanker build program."

Added Meehan, "Last April, we announced the ten ship contract, the partnership with OSG, and a commitment to build ships in Philadelphia for a long time to come. Today, we demonstrated how we are delivering on the promises made six short months ago."

As part of the ceremony, four coins were placed under the keel block in a practice that recreates a long-standing tradition whereby shipbuilders hide special coins in the keel section of a ship as a permanent symbol of good fortune and safe travels. Dave Meehan and shipyard employee Valo Terry, one of the first production workers hired at the yard, represented Aker while Jennifer Schlueter, Vice President Corporate Communications, Malcolm Hedley, Vice President and Eric Smith, Assistant Vice President U.S. Fleet participated in the ceremony from OSG.