August 10, 2007

OSG America L.P. files IPO registration statement

Overseas Shipholding Group, Inc. (NYSE:OSG) announced today that a registration statement has been filed with the Securities and Exchange Commission for the proposed initial public offering by OSG America L.P. of 7,500,000 common units representing a 22.8% limited partner interest in the partnership.

In the filing with the SEC, OSG America L.P describes itself as follows:

We are the largest operator, based on barrel-carrying capacity, of U.S. flag product carriers and barges transporting refined petroleum products. We were recently formed by Overseas Shipholding Group, Inc. (NYSE: OSG), a market leader in providing global energy transportation services. We plan to use the expertise, customer base and reputation of OSG to expand our marine transportation service. Following this offering, our initial fleet of product carriers and barges will consist of ten product carriers, seven articulated tug barges (ATBs) and one conventional tug-barge unit (CTB), with an aggregate carrying capacity of approximately 4.9 million barrels. Alaska Tanker Company, LLC (ATC), a joint venture in which we have a 37.5% ownership interest, transports crude oil from Alaska to the continental United States using a fleet of five crude-oil tankers with an aggregate carrying capacity of 6.3 million barrels. Upon the completion of this offering, OSG will own a 77.2% interest in us, including a 2% interest through our general partner, which OSG owns and controls.

OSG America L.P. has granted the underwriters a 30-day option to purchase up to an additional 1,125,000 common units at the public offering price, less the underwriting discount, to cover any over-allotments.

OSG America L.P. intends to use the net proceeds of the offering to pay OSG approximately $136.5 million in cash.

Immediately following completion of the public offering, OSG will hold a 75.2% limited partner interest in OSG America L.P. and a 2% general partner interest through its ownership of the general partner of the partnership. If the underwriters exercise their over-allotment option in full, OSG's resulting limited partner interest will be 73.2%.

Citi and UBS Investment Bank are acting as joint bookrunning managers of the offering, and Merrill Lynch & Co. is acting as joint lead manager.

The proposed public offering will be made only by means of a prospectus. Once available, a copy of the prospectus may be obtained from Citigroup Global Markets Inc., Attn: Prospectus Department, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220, telephone: 800-831-9146, or by email at batprospectusdept@citi.com, or from UBS Securities LLC, 299 Park Avenue, Prospectus Department, New York, NY 10171, telephone 212-821-3000.

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