SOURCE: Golden Ocean Group

October 25, 2007 02:47 ET


HAMILTON, BERMUDA--(Marketwire - October 25, 2007) -

Golden Ocean Group Limited ("Golden Ocean" or the "Company") has agreed to get released from the bare boat agreements for the two 1994 built Panamax vessels "M/V Golden Jade" and "M/V Golden Jasmine" against purchasing the vessels for $14.5 million per vessel.

Simultaneously the Company has agreed to sell the two vessels for net sale proceeds of $124.1 million in total. Delivery to the buyers is expected to take place in May 2008.

This transaction will give a positive addition to net income of approximately $77.9 million, and is estimated to release approximately $88 million in additional liquidity. In August 2006 the Company paid $38 million to take over the bareboat agreements for the five Panamax vessels under the deal with Clipper Bulk Shipping Ltd. Four out of these vessels are now sold and the Company does still keep one remaining 1994 built vessel. The company will continue to pay $5,600 in bare boat hire for this vessel until June 2011 when the Company has an option to buy the vessels in accordance with the original agreement.

This sale does not represent a change in strategy, but is rather showing the Company's ability to make profitable asset play and secure historic high earnings on portion of its fleet going forward. The sale of Golden Jade and Golden Jasmine should be seen up against the sizeable new building commitments Golden Ocean has taken on during the last year. From such point of view the deal constitutes a natural renewal and increased focus on high quality modern tonnage.

October 25, 2007
Hamilton, Bermuda

Contact Persons:
Herman Billung: CEO, Golden Ocean Management AS
+47 22 01 73 41

Geir Karlsen: CFO, Golden Ocean Management AS
+47 22 01 73 53

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