Freshly Minted – February 17, 2000

BREAKING NEWS

Odfjell and Ceres Hellenic Shipping, the owner of Seachem, announced today that the companies will combine their chemical vessels to create the world’s largest owner and operator of chemical tanker tonnage. Seachem is the world’s fourth largest chemical tanker operator, with a total of 23 and an orderbook of 8 newbuildings for delivery in 2001 – 2003. Under the transaction, Odfjell will issue new shares to Ceres in exchange for the following assets: · 9 chemical tankers aggregating 335,000 dwt, built 1986 – 1988; · 4 newbuildings aggregating 160,000 dwt for delivery 2001-2002; · and in addition, Odfjell will purchase 100% of the shares in Seachem, the pool company. The transaction equals about $ 360 mill. investment on the combined company’s balance sheet. As part settlement, Odfjell will issue to Ceres a total of approximate. 4.9 mill shares at NKr 208 per share, in total the equivalent of about $126 million worth of equity. The transaction values Odfjell at approximately. NKr 4.6 billion before the issue of any new equity, and the combined company at approximately. NKR 5.6 billion. Furthermore, the solid financial standing of Odfjell will be kept through the funding of the transaction by 35% equity through the private placement. Odfjell’s shares (OSL:ODF) were up 10% in early trading in Oslo on Friday. The new company will have a market share of about 26% and will have an expected annual turnover is expected to increase from about NKr 4.3 billion to about NKr 5.5 billion during the first year after amalgamation. Book equity increases to about NKr 3.8 billion and, prior to the delivery of the aforementioned 4 newbuildings, total assets increase to about NKr 11.1 billion.

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SHIP FINANCE NORWAY, OSLO APRIL 13TH

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