Omega Navigation Announces Formation of Joint Venture to Acquire of Newbuilding Vessel

Omega Navigation Enterprises, Inc., a provider of global marine transportation services focusing on product tankers, announced yesterday it has taken delivery of the first of its newbuildings, the 47,000 dwt. Omega Duke.

It further announced that it has taken several measures to better position itself to fund its newbuilding commitments from internally generated cash flow. As previously announced, Omega has commitments from commercial banks to provide 75% financing at delivery of all of its remaining newbuildings based on contract prices or fair market values at the time of delivery. Formation of Joint Venture. In May 2008, Omega announced it had entered in to an agreement with an unrelated third party to purchase two newbuilding 47,000 dwt. coated product / chemical tankers under construction at Hyundai Mipo Dockyard in South Korea. Omega is pleased to announce that the Company and Glencore International AG (through wholly owned subsidiaries) have agreed to enter into an equal partnership joint venture for the purchase of the first of the above vessels. Consequently, the Omega Duke was recently purchased by a Company belonging to the joint venture at a price based on current market valuation. The Omega Duke has been purchased by a combination of previously secured bank financing and equity injected by both partners and will not be consolidated in Omega’s financial statements.

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