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Marine Log

February 14, 2007

Excel Maritime sponsors "blank check" company

Athens-based dry bulk specialist Excel Maritime Carriers Ltd (NYSE:EXM) reports that it is the sponsor and corporate shareholder of Oceanaut, Inc., a newly organized "blank check company" formed for the purpose of acquiring, through a merger, capital stock exchange, asset acquisition, stock purchase or other similar business combination, vessels or one or more operating businesses in the shipping industry.

Oceanaut, Inc. has filed a registration statement with the SEC for the Initial Public Offering of 18,750,000 units. Each unit has an offering price of $8.00 and consists of one share of common stock and one warrant that entitles the holder to purchase one share of common stock at a price of $6.00, exercisable as per the terms and conditions described in the Registration Statement. Citigroup Global Markets Inc. is acting as sole bookrunner and Maxim Group LLC is acting as co-manager for the initial public offering.

Excel Maritime Carriers says it has agreed to invest a total of $ 11,000,000 in Oceanaut, Inc. in a private placement to occur immediately prior to the closing of the initial public offering. Following the public offering and the private placement, Excel Maritime Carriers will own approximately 18.9% of the common shares of Oceanaut, Inc.

Investment in blank check companies are not for the faint of heart. This one may require particularly strong nerves. The F-1 discloses that:

You will not be entitled to protections normally afforded to investors of blank check companies.

Since the net proceeds of this offering are intended to be used to complete a business combination with a target business that has not been identified, we may be deemed to be a "blank check" company under the United States securities laws. However, since we will have net tangible assets in excess of $5,000,000 upon the successful consummation of this offering and will file a Report on Form 6-K with the Securities and Exchange Commission upon consummation of this offering, including an audited balance sheet demonstrating this fact, we are exempt from rules promulgated by the Securities and Exchange Commission to protect investors of blank check companies such as Rule 419. Accordingly, investors will not be afforded the benefits or protections of those rules. Because we are not subject to Rule 419, our units will be immediately tradable and we have a longer period of time to complete a business combination in certain circumstances.

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