SOURCE: Omega Navigation

September 22, 2006 09:34 ET

Omega Navigation Enterprises, Inc. Announces Sale of Its Dry Bulk Carrier Fleet Becoming a "Pure Play" Product Tanker Company

PIRAEUS, GREECE -- (MARKET WIRE) -- September 22, 2006 -- Omega Navigation Enterprises, Inc. (NASDAQ: ONAV) (SGX: ONAV50), a provider of global marine transportation services focusing on product tankers announced that on September 20, 2006, it entered into an agreement to sell its two dry bulk carriers the "Ekavi I" and the "Electra I" for a total gross consideration of approximately $82.5 million.

The "Ekavi I" and the "Electra I" are sister ship Handymax vessels, built in 2004, each having a carrying capacity of 52,800 dead weight tons (dwt). Omega Navigation expects to deliver the "Ekavi" and the "Electra" to the buyer between November 15, 2006 and January 15, 2007.

George Kassiotis, President and Chief Executive Officer of Omega Navigation, commented "We believe that the agreement to sell the "Ekavi I" and the "Electra I" will enable us to enhance shareholder value with Omega Navigation becoming the only "pure play" product tanker company listed in the U.S. In addition, we plan to use approximately half of the net proceeds from the sale of the dry bulk carriers to pay down a portion of our existing debt and the other half of the net proceeds potentially to further invest in the product tanker sector, which in our opinion, offers the most robust fundamentals of any shipping sector, as well as any other general corporate purposes. We plan to continue our business strategy of expanding our double hull product tanker fleet through selective and accretive vessel acquisitions."

Fleet Profile and Employment:

The table below describes the profile and employment of the Company's fleet:

Vessel                          Sister     Year    Deadweight     Type
                              ---------- --------- ---------- ------------
                              Ships (1)    Built      (dwt)
                              ---------- --------- ---------- ------------

CURRENT FLEET

Product Tankers
Panamax Product Tankers
                              ---------- --------- ---------- ------------
Omega Queen                        D        2004       74,999 LR1
                              ---------- --------- ---------- ------------
Omega King                         D        2004       74,999 LR1
                              ---------- --------- ---------- ------------
Omega Lady Sarah (ex Iasonas)      C        2004       71,500 LR1
                              ---------- --------- ---------- ------------
Omega Lady Miriam (ex
 Miltiadis)                        C        2003       71,500 LR1
                              ---------- --------- ---------- ------------
Handymax Product Tankers
                              ---------- --------- ---------- ------------
Omega Prince (ex Aris)             B        2006       36,680 Ice Class 1A
                              ---------- --------- ---------- ------------
Omega Princess (ex Adonis)         B        2006       36,680 Ice Class 1A
                              ---------- --------- ---------- ------------
TOTAL (DWT):                                          366,358
                              ---------- --------- ---------- ------------

Dry Bulk Carriers
Dry Bulk Carriers (Under
 agreement to sell) (6)
                              ---------- --------- ---------- ------------
Ekavi I                            A        2004       52,800 Handymax
                              ---------- --------- ---------- ------------
Electra I                          A        2004       52,800 Handymax
                              ---------- --------- ---------- ------------
TOTAL (DWT):                                          105,600
                              ---------- --------- ---------- ------------
FLEET TOTAL (DWT)                                     471,958
                              ---------- --------- ---------- ------------



Vessel                        Delivery     Daily              Redelivery
                              ---------- --------- ---------- ------------
                              Date       Hire Rate
                                            (2)
                              ---------- --------- ---------- ------------

CURRENT FLEET

Product Tankers
Panamax Product Tankers
                              ---------- --------- ---------- ------------
Omega Queen                   May-06     $  26,500     (5)    May-09
                              ---------- --------- ---------- ------------
Omega King                    Jun-06     $  26,500     (5)    Jun-09
                              ---------- --------- ---------- ------------
Omega Lady Sarah(ex Iasonas)  Jun-06     $  24,000     (4)    Jun-09
                              ---------- --------- ---------- ------------
Omega Lady Miriam(ex
 Miltiadis)                   Aug-06     $  24,000     (4)    Jul-09
                              ---------- --------- ---------- ------------
Handymax Product Tankers
                              ---------- --------- ---------- ------------
Omega Prince (ex Aris)        Jun-06     $  21,000     (3)    Jun-09
                              ---------- --------- ---------- ------------
Omega Princess (ex Adonis)    Jul-06     $  21,000     (3)    Jun-09
                              ---------- --------- ---------- ------------
TOTAL (DWT):
                              ---------- --------- ---------- ------------

Dry Bulk Carriers



Dry Bulk Carriers (Under
 agreement to sell) (6)
                              ---------- --------- ---------- ------------
Ekavi I                       Apr-05     $  17,000            Mar-May-07
                              ---------- --------- ---------- ------------
Electra I                     Apr-05     $  25,000            Apr-Jun-07
                              ---------- --------- ---------- ------------
TOTAL (DWT):
                              ---------- --------- ---------- ------------
FLEET TOTAL (DWT)
                              ---------- --------- ---------- ------------

(1) Each vessel is a sister ship of each other vessel that has the same
    letter.

(2) This table shows gross charter rates and does not include brokers'
    commissions, which are 5.0% of the daily time charter hire rate for
    the dry bulk carriers and 1.25% of the daily time charter rate for the
    product tankers.

(3) Plus any additional income under profit sharing provisions of the
    charter agreements with D/S Norden A/S.  The Company has granted the
    charterers the option to extend the charter for 12 months at a minimum
    daily time charter hire rate of $24,000.

(4) Plus any additional income under profit sharing provisions of the
    Company's charter agreement.

(5) The Company has granted Torm the option to extend the charter for 24
    months at a minimum daily time charter hire rate of $28,500.

(6) As of September 20, 2006, Omega Navigation agreed to sell its two dry
    bulk carriers the "Ekavi" and the "Electra" and expects to deliver to
    the buyer the vessels between the dates November 15, 2006 and January
    15, 2007.

About Omega Navigation Enterprises, Inc.

Omega Navigation Enterprises, Inc. is an international provider of global marine transportation services through the ownership and operation of six product tankers and two dry bulk carriers with a total capacity of 471,958 dwt and an average age of approximately 1.6 years. The current fleet includes 6 double hull product tankers with a total cargo-carrying capacity of 366,358 dwt and 2 Handymax dry bulk carriers with a total cargo-carrying capacity of 105,600 dwt. Following the sale of its two dry bulk carriers, Omega Navigation will have 6 double hull product tankers with a total cargo-carrying capacity of 366,358 dwt. All six product tankers are chartered out on 3 year period time charters. Furthermore, the Company has options to acquire four additional double hull Ice Class 1A product carriers currently under construction and are expected to be available for delivery between March 2007 and September 2007.

The Company was incorporated in the Marshall Islands in February 2005. Its principal executive offices are located in Piraeus, Greece and it also maintains an office in the United States.

Omega Navigation's Class A common shares are traded on the NASDAQ National Market under the symbol "ONAV" and are also listed on the Singapore Exchange Securities Trading Limited under the symbol "ONAV 50."

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "except," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "will," "may," "should," "expect" pending and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, the Company's management's examination of historical operating trends, data contained in the Company's records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company's control, the Company cannot assure you that the Company will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors other important factors that, in the Company's view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for product tanker and dry bulk shipping capacity, changes in the Company's operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company's vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see the Company's filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

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