Title XI Funding
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Marine Log

April 17, 2007

Teekay and Torm swoop on OMI

Teekay Shipping Corporation (NYSE:TK) and A/S Dampskibsselskabet Torm (NASDAQ:TRMD) have entered into a definitive agreement to acquire OMI Corporation (NYSE:OMM) in a $2.2 billion deal. The agreement was unanimously approved by OMI's Board of Directors.

Upon closing, Teekay and Torm have agreed to divide the assets of OMI equally between themselves.

OMI's 3.5 million dwt fleet comprises 13 Suezmax tankers (seven of which it owns and six of which are chartered-in) and 32 product carriers (of which it owns 28 and charters-in four). OMI also has two product carriers under construction, which will be delivered in 2009.

Teekay will acquire OMI's Suezmax operations and eight product tankers, and Torm will acquire the remaining product tankers, 26 in total.

Under the agreement, OMI shareholders will receive $29.25 in cash for each share of OMI common stock they hold. Teekay and Torm will equally split the total cost of the transaction of approximately $2.2 billion, including assumed net debt and other transaction costs. Under the terms of the agreement, OMI will be permitted to pay a dividend at a rate of $0.15 per share per quarter, pro rated from April 1 to the closing of the tender offer, up to a maximum of $0.15 per share in the aggregate.

Under the agreement, Teekay and Torm are required to commence a tender offer to the OMI shareholders on or before April 27, 2007. The tender offer will be subject to acceptance from OMI shareholders representing over 50 percent of OMI's outstanding shares as well as receipt of standard regulatory approvals. If the tender is successful, the transaction is expected to close during the second quarter of 2007. OMI will promptly file a copy of the definitive agreement with the Securities and Exchange Commission.

"We are delighted with the outcome of this process, which we believe has greatly benefited our stockholders and is a testament to the outstanding job our people have done in a highly competitive market environment," said Craig H. Stevenson, Jr., Chairman and Chief Executive Officer of OMI.

Due to the pending transaction, the OMI Board of Directors has postponed OMI's 2007 Annual Meeting of Stockholders to June 28, 2007 from May 9, 2007.