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Marine Log

March 21, 2008

Fredriksen and Frontline buy a chunk of OSG

Frontline Ltd. (NYSE:FRO) said yesterday that it had made an SEC filing with the United States Securities and Exchange Commission reporting that Fontline and companies indirectly controlled by Mr. John Fredriksen as of March 10, 2008 together held an aggregate of 1,628,300 shares in Overseas Shipholding Group, Inc. (OSG), corresponding to 5.2% ownership.

In addition to the above mentioned holding, Frontline has entered into a forward contract for 1,366,600 shares in OSG, corresponding to an additional 4.4% of the total outstanding shares in OSG. If Frontline should decide to take delivery of the shares under the forward contract, the company and the group companies will control 9.6% ownership in OSG.

Frontline said it "sees the investment in OSG as a good value. Frontline is making this investment together with its largest shareholder in order not to significantly reduce Frontline's short and medium term dividend capacity. The joint investment also reflects the fact that only approximately 41% of OSG's total fleet in terms of number of vessels is exposed to the market for crude oil transportation, which is Frontline's core market."

Frontline said that it and group companies "view both these holdings as good financial value investments, but reserve the right to be in contact with management and other shareholders of OSG regarding alternatives that OSG could employ to enhance shareholder value."


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