SOURCE: Omega Navigation Enterprises, Inc.

August 02, 2006 17:30 ET

Omega Navigation Enterprises, Inc. Takes Delivery of Its Sixth Product Tanker

PIRAEUS, GREECE -- (MARKET WIRE) -- August 2, 2006 -- Omega Navigation Enterprises, Inc. (NASDAQ: ONAV) (SGX: ONAV50), a provider of global marine transportation services focusing primarily on product tankers, announced that on August 1, 2006 it took delivery of its sixth product tanker, "Miltiadis," to be renamed the "Omega Lady Miriam."

The "Omega Lady Miriam" is a Panamax (LR1) double hull product tanker of 71,500 deadweight tons ("dwt"), built by STX, South Korea in 2004. Upon delivery it is employed under a time charter to ST Shipping & Transport (Glencore International AG), until July 2009 at a daily time charter hire rate of $24,000, with a profit sharing arrangement according to which Omega Navigation will receive 100% of the vessel's daily time charter earnings between $24,000 and $25,500 per day and time charter earnings in excess of $25,500 will be divided equally between Omega Navigation and Glencore International AG.

The acquisition of the "Omega Lady Miriam" was funded in part with a portion of the net proceeds of the Company's initial public offering and in part with debt under a senior secured credit facility provided by HSH-Nordbank AG. Omega Navigation has selected V.Ships as the technical manager for the "Omega Lady Miriam." V.Ships also manages the "Omega Lady Sarah," the "Omega Princess" and the "Omega Prince."

With the delivery of "Omega Lady Miriam," Omega Navigation completes the acquisition of the six identified product tankers which it had agreed to acquire prior to its IPO. As of August 1, 2006, the Company operates a fleet of eight vessels, including four Panamax and two Handymax ice class 1A tankers, and the Company's initial pre-IPO fleet of two Handymax drybulk carriers.


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


                                   Sister
                                    Ships   Year    Deadweight
 Vessel                               (1)   Built    (dwt)         Type
---------------------------------------------------------------------------
CURRENT FLEET (Vessels already
 delivered to ONAV)
Dry Bulk Carrier
Ekavi I                                A      2004     52,800      Handymax
Electra I                              A      2004     52,800      Handymax
Panamax Product Tanker
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
FLEET TOTAL (DWT):                                    471,958




                                              Daily
                                    Delivery  Hire
Vessel                                Date    Rate (2)      Redelivery
-----------------------------------------------------------------------
CURRENT FLEET (Vessels already
 delivered to ONAV)
Dry Bulk Carrier
Ekavi I                               Apr-05   $ 17,000      Mar-May-07
Electra I                             Apr-05   $ 25,000      Apr-Jun-07
Panamax Product Tanker
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
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.


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 drybulk carriers with a total cargo-carrying capacity of 105,600 dwt. 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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