U.S. Shipping Partners names new CEO

U.S. Shipping Partners L.P. (NYSE: USS) says its Board of Directors has elected Ronald L. O'Kelley as President and Chief Executive. Mr. O'Kelley has served as a director of the partnership's general partner since the Partnership went public in November 2004. Paul Gridley, who has served as chairman and chief executive officer, will relinquish his CEO, but will remain as chairman.

Mr. Gridley said, "Ron is a seasoned and well-respected veteran in the financial and business arena and brings extensive experience and knowledge in global finance and business management. Ron has tremendous experience in managing companies undergoing difficult market challenges. At this critical juncture, we have determined that U.S. Shipping is best led by an executive having this skill set. His experience in varied industries provides a broad business perspective that will be a valuable addition to our management team in this new phase of our development. I look forward to continuing to work with Ron as we work to address the challenges faced by the Partnership and meet the needs of our customers and other stakeholders."

U.S. Shipping's common units were trading at below $2.25 this afternoon, considerably below their year-ago price of $18.35, but somewhat above the $1.37 they sold for on July 14.

On July 30, U.S. Shipping Partners L.P. announced that its review of strategic alternatives and its negotiations with its lenders to amend certain financial covenants under its senior credit facility were continuing and said it had determined that it would not pay a distribution on its units for the quarter ended June 30, 2008.

"We thank Paul for his dedicated work on behalf of the partnership, and we look forward to benefiting from his continued strategic guidance," said Mr. O'Kelley. "Under Paul's leadership and vision, we have assembled a superb management team, a valuable asset base and an impressive customer franchise. Having faced a number of challenges this year, we are focused on enhancing our financial position and delivering on our commitment to safety and efficiency in meeting customer and industry standards. I am confident that the company is taking the right steps to move forward on a sound basis."

Ronald L. O'Kelley is Chairman and Chief Executive Officer of Atlantic Coast Venture Investments Inc., a private investment company. Mr. O'Kelley served as Executive Vice President, Chief Financial Officer and treasurer of State Street Corporation from 1995 to 2002, as Chief Financial Officer at Douglas Aircraft Company from 1991 to 1995 and as Chief Financial Officer at Rolls Royce Inc. from 1983 to 1991. He also served in senior financial positions at Citicorp from 1975 to 1983 and at Texas Instruments Incorporated from 1969 to 1975. Mr. O'Kelley is also a director of Selective Insurance Group, Inc. Mr. O'Kelley serves as an advisor to the Donald Jones Center for Entrepreneurship at the Tepper School of Business and is a member of the National Association of Corporate Directors.

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