SOURCE: Omega Navigation

July 31, 2006 16:14 ET

Omega Navigation Enterprises, Inc. Reports Second Quarter 2006 Results; Declares Quarterly Dividend of $0.50 per Share

PIRAEUS, GREECE -- (MARKET WIRE) -- July 31, 2006 -- Omega Navigation Enterprises, Inc. (NASDAQ: ONAV) (SES: ONAV50), a provider of global marine transportation services focusing primarily on product tankers, announced today its financial and operational results for the second quarter and for the six-month period ended June 30, 2006.

The company also announced the declaration of its quarterly dividend of $ 0.50 per share as well as the scheduled delivery of its sixth product tanker, the "Omega Lady Miriam," on August 1, 2006.

Background

Omega Navigation Enterprises, Inc. 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.

On April 7, 2006, the Company successfully completed its Initial Public Offering of 12,000,000 Class A Common Shares at $ 17 per share raising a total of $ 204 million in gross proceeds. Omega Navigation's Class A common shares commenced trading on the NASDAQ National Market on April 7, 2006 and on the Singapore Exchange Securities Trading Limited on April 10, 2006.

As was contemplated at the time of the offering, the net proceeds of the Company's IPO, together with a credit facility provided by HSH-Nordbank AG, have been used to fund the purchase of six double hull product tankers and to repay debt outstanding at the time of the IPO. Following the acquisition of these six vessels, the Company now 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.

The Company took delivery of four of its product tankers during the second quarter 2006, the fifth in July and the sixth is scheduled for August 1, 2006.

Each of the Company's product tankers are employed under time charters for a minimum of three years from their respective delivery dates. The Company's two bulk carriers are on time charter until between March and June 2007. All of the Company's vessels are chartered to established charterers including Korea Lines, Norden, Glencore and Torm.

The Company intends to declare and pay quarterly dividends to shareholders, commencing in August 2006 in amounts that are substantially equal to the available cash from operations during the previous quarter after cash expenses and any discretionary reserves. The first such quarterly dividend of $ 0.50 per share was declared on July 27, 2006 and is payable on August 31, 2006 to shareholders of record as of the close of business on August 15, 2006.

Second Quarter 2006 Results

For the second quarter ended June 30, 2006, Omega Navigation reported Total Revenues of $ 5.2 million and Net Income of $ 2.9 million, or $ 0.20 per share calculated on 14,358,791 weighted average basic and diluted shares outstanding for the period. EBITDA for the quarter was $ 3.3 million. Please see below for a reconciliation of EBITDA to Cash from Operating Activities.

The company owned and operated an average of 2.6 vessels during the second quarter 2006, earning an average time-charter equivalent rate of $ 20,011 per day, for the bulk carriers, $ 20,788 per day for the Handymax product tankers, and $ 26,421 per day for the Panamax product tankers.

During the second quarter of 2006, Omega Navigation took delivery of four double hull product tankers, including three Panamax and one Handymax ice class 1A, which complemented the Company's initial fleet of two Handymax drybulk carriers.

Six Months 2006 Results

For the six month period ended June 30, 2006, The Company reported Total Revenues of $ 9.1 million and Net Income of $ 8.9 million, or $1.01 per share calculated on 8,785,359 weighted average basic and diluted shares outstanding for the period. Please see below for a reconciliation of EBITDA to Cash from Operating Activities.

The Company owned and operated an average of 2.3 vessels during the six month period ended June 30, 2006, earning an average time-charter equivalent rate of $ 20,271 per day for the bulk carriers, $ 20,788 per day for the Handymax product tankers and $ 26,421 per day for the Panamax product carriers.

During the first quarter of 2006 the Company's fleet was comprised only of its two drybulk carriers. During the second quarter of 2006, the Company expanded its fleet and took delivery of four of the six identified double hull product tankers that it had agreed to acquire, at the time of its IPO. Furthermore, the Company took delivery of the fifth product tanker in July while the sixth is scheduled for August 1, 2006.

Management Commentary:

George Kassiotis, President and Chief Executive Officer of Omega Navigation, commented, "We are pleased to have delivered strong financial results for the second quarter and for the six month period ended June 30, 2006 especially in view of the fact that this has been a formative period for our Company during which we have been gradually building our fleet.

As of August 1, 2006, we expect to have taken delivery of all six identified product tankers that we had agreed to acquire and our fleet will include eight vessels in total, six double hull product tankers and two drybulk carriers. Therefore, we now expect to benefit from the revenue generating capacity of our entire fleet. We have a young, modern and diversified fleet primarily oriented towards product tankers with a total capacity of 471,958 dwt and an average age of approximately 1.6 years.

Our strategy of employing our vessels under long-term period charters with first class charterers enables us to generate steady and predictable cash flows and reduces our exposure to short term market volatility. All of our product tankers are chartered for a minimum of three years and all of our dry bulk vessels are chartered until between March and June 2007.

Our objective is to grow selectively through a disciplined and low risk approach focused on maximizing shareholder value while paying stable dividends to our shareholders. As intended, we declared on July 27, 2006, our first quarterly dividend since our inception in the amount of $ 0.50 per share.

We continue to review opportunities for growth which would enhance shareholder value and also, we hold options to purchase four ice class 1A Panamax product tankers currently under construction at STX shipyard in Korea, with deliveries scheduled throughout 2007. We will assess the acquisition of these vessels closer to the time the options are required to be exercised and depending on market conditions at that time we will determine whether these acquisitions would be accretive to earnings thus enhancing shareholder value."

Gregory McGrath, Chief Financial Officer of Omega Navigation, commented: "As of June 30, 2006, our net debt to capitalization stood at 48%. As of today, and after taking into consideration the delivery of all six product tankers, our net debt to capitalization is at 53%. This modest leverage affords us significant flexibility and growth potential. In addition, following the delivery of our sixth and last identified product tanker, 'Omega Lady Miriam,' we still have excess capacity of $53 million in our existing revolving credit facility. Furthermore, the fact that we have profit sharing agreements on the earnings of four of the six product tankers, enables us to capture the upside potential of the market and enhance our profitability."


       Fleet Data

                                                                   Drybulk
Three Months Ended June 30, 2006             Product Carriers      Carriers
                                          Panamax      Handymax
                                          Tankers      Tankers
Number of vessels at end of period            3            1            2
Average age of fleet (in years)               2            0            2
Ownership days (2)                           50            3          182
Available days (3)                           50            3          182
Operating days (4)                           50            3          182
Fleet Utilization (5)                       100%         100%         100%
Time charter equivalent (TCE) rate
 $/day (6)                               26,421       20,788       20,011
Daily Vessel operating expenses
 $/day (7)                                4,471        3,784        3,558



                                                                   Drybulk
Six Months Ended June 30, 2006               Product Carriers      Carriers
                                          Panamax      Handymax
                                          Tankers      Tankers
Number of vessels at end of period            3            1            2
Average age of fleet (in years)               2            0            2
Ownership days (2)                           50            3          362
Available days (3)                           50            3          362
Operating days (4)                           50            3          362
Fleet Utilization (5)                       100%         100%         100%
Time charter equivalent (TCE) rate
 $/day (6)                               26,421       20,788       20,271
Daily Vessel operating expenses
 $/day (7)                                4,471        3,784        3,554



(1) Average number of vessels is the number of vessels that constituted
    our fleet for the relevant period, as measured by the sum of the number
    of days each vessel was a part of our fleet during the period divided
    by the number of calendar days in the period.

(2) Ownership days are the aggregate number of days in a period during
    which each vessel in our fleet has been owned by us. Ownership days
    are an indicator of the size of our fleet over a period and affect
    both the amount of revenues and the amount of expenses that we
    record during a period.

(3) Available days are the number of our ownership days less the
    aggregate number of days that our vessels are off-hire due to
    scheduled repairs or repairs under guarantee, vessel upgrades or
    special surveys. The shipping industry uses available days to measure
    the number of days in a period during which vessels should be capable
    of generating revenues.

(4) Operating days are the number of available days in a period less the
    aggregate number of days that our vessels are off-hire due to
    unforeseen circumstances. The shipping industry uses operating days to
    measure the aggregate number of days in a period during which vessels
    actually generate revenues.

(5) We calculate fleet utilization by dividing the number of our operating
    days during a period by the number of our available days during the
    period. The shipping industry uses fleet utilization to measure a
    company's efficiency in finding suitable employment for its vessels
    and minimizing the number of days that its vessels are off-hire for
    reasons other than scheduled repairs or repairs under guarantee, vessel
    upgrades, special surveys or vessel positioning.

(6) Time charter equivalent, or TCE, is a measure of the average daily
    revenue performance of a vessel on a per voyage basis. Our method of
    calculating TCE is consistent with industry standards and is determined
    by dividing voyage revenues (net of voyage expenses) by available days
    for the relevant time period. Voyage expenses primarily consist of
    port, canal and fuel costs that are unique to a particular voyage,
    which would otherwise be paid by the charterer under a time charter
    contract, as well as commissions. TCE is a standard shipping industry
    performance measure used primarily to compare period-to-period changes
    in a shipping company's performance despite changes in the mix of
    charter types (i.e., spot charters, time charters and bareboat
    charters) under which the vessels may be employed between the periods.

(7) Daily vessel operating expenses, which include crew wages and related
    costs, the cost of insurance, expenses relating to repairs and
    maintenance (excluding drydocking), the costs of spares and consumable
    stores, tonnage taxes and other miscellaneous expenses, but excludes
    any predelivery expenses incurred at or prior to the delivery of the
    product tankers and also excludes any expense related to the purchasing
    of lubricating oils for the product tankers., are calculated by
    dividing vessel operating expenses by ownership days for the relevant
    period.
During the first quarter of 2006 Omega Navigation's fleet was comprised only of its two drybulk carriers. During the second quarter 2006, the Company expanded its fleet and took delivery of four of its six double hull product tankers that it had agreed to acquire at the time of its IPO. The fifth product tanker "Omega Princess" was delivered on July 3, 2006, and the sixth product tanker "Miltiadis," to be renamed the "Omega Lady Miriam" is scheduled to be delivered on August 1, 2006.

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. It will be employed under a long-term 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" is to be 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 VShips as the technical manager for the "Omega Lady Myriam" which also manages the "Omega Lady Sarah," the "Omega Princess" and the "Omega Prince."

George Kassiotis, President and Chief Executive Officer of Omega Navigation, commented: "Our technical managers for our product tankers are VShips and Singapore-based Eurasia Shipmanagement. VShips is one of the world's largest independent ship management companies with 44 offices in 26 countries. Eurasia has managed the 'Omega Queen' and 'Omega King' since their delivery from the shipyard. Our cooperation with Eurasia enhances Omega's presence in Asia and increases potential business development opportunities. Our technical manager for our dry bulk vessels is Target Marine S.A., which has 20 years of ship management experience. We believe that having more than one manager gives a good benchmark against each other and better access to crewing."

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 (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
                     ---------- ---------- ---------- ------------



Vessel                            Daily
                     Delivery   Hire Rate
                       Date        (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.
Mr. Kassiotis commented: "As of today, 100% of our operating days in 2006 and 86% in 2007 are fixed under period employment, thereby producing stable and predictable cash flows. Our six product tankers are on charter for a minimum of three years and our two bulk carriers are on time charter until between March and June 2007. We also deal with first class charterers, such as Korea Lines, Norden, Glencore and Torm. Looking ahead, the fact that our entire fleet of 8 vessels will be in place as of August 1, 2006 enhances our revenue generation capability, facilitates the implementation of our dividend policy and reinforces the growth prospects of our company."

Quarterly Dividend

On July 27, 2006, the Company declared its first quarterly dividend since it went public, of $ 0.50 per share, payable on August 31, 2006 to shareholders of record as of August 15, 2006.

Omega Navigation intends to declare and pay quarterly dividends to shareholders in amounts that are substantially equal to the available cash from operations during the previous quarter after cash expenses and discretionary reserves.

Gregory McGrath, Chief Financial Officer of Omega Navigation, commented: "Our dividend policy is structured to enable shareholders to share equally in our Company's profitability and growth. Furthermore, the Class B shares held by the initial shareholders, which currently represent 20.7% of the total shares outstanding, are subordinated in terms of dividend payment to the Class A shares held by the public."

He continued: "Our first quarterly dividend since we went public was declared within the timeframe outlined in our IPO prospectus. Our next quarterly dividend is intended for November 2006."

Conference Call and Webcast:

As already announced, tomorrow, Tuesday, August 1, 2006 at 10:00 A.M. EDT, the Company's management will host a conference call to discuss the results.

Conference Call details:

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1.866.819.7111 (from the US), 0800 953 0329 (from the UK) or +44(0)1452 542 301 (from outside the US). Please quote "Omega Navigation."

In case of any problem with the above numbers, please dial 1.866.869.2352 (from the US), 0800 694 1449 (from the UK) or + 44(0)1452 560 304 (from outside the US). Quote "Omega Navigation."

A telephonic replay of the conference call will be available until August 08, 2006 by dialing 1.866.247.4222 (from the US), 0800 953 1533 (from the UK) or + 44(0)1452 550 000 (from outside the US). Access Code: 1859591#

Slides and audio webcast: There will also be a live, and then archived, webcast of the conference call, through Omega Navigation's website (www.omeganavigation.com), Participants into the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.


               Omega Navigation Enterprises Inc.
               Consolidated Statement of Income
            (All amounts expressed in U.S. Dollars)


                                               Three Months   Six Months
                                              Ended June 30, Ended June 30,
                                                     2006         2006
Revenues:                                         (unaudited)  (unaudited)
  Voyage revenue                                  $ 5,216,836  $ 9,111,220

Expenses:
  Voyage expenses                                     213,191      411,306
  Vessel operating expenses                         1,191,607    1,830,607
  Depreciation and amortization of deferred
   charges                                          1,197,225    2,028,483
  Management fees                                     105,973      195,973
  General and administrative expenses                 429,504      732,336
                                                  -----------  -----------
  Foreign currency (gains)/loss                        13,985       14,466
                                                  -----------  -----------
Operating income                                    2,065,351    3,898,049
                                                  -----------  -----------

  Gain on extinguishment of debt                            -    5,000,000
                                                  -----------  -----------

EBITDA                                              3,262,576   10,926,532

Other income (expenses):
  Interest and finance costs                       (1,336,276)  (2,212,681)
  Interest income                                   1,444,395    1,459,116
  Change in fair value of financial
   instruments                                        737,336      737,336
                                                  -----------  -----------
    Total other income (expenses)                     845,455      (16,229)
                                                  -----------  -----------

Net income                                          2,910,806    8,881,820
                                                  ===========  ===========


  Earnings per Class A common share, basic and
   diluted                                               0.28         1.05
  Earnings per Class B common share, basic and
   diluted                                                  -         1.05

Weighted average number of Class A common shares,
 basic and diluted                                 10,559,451    5,313,867
Weighted average number of Class B common shares,
 basic and diluted                                  3,140,000    3,140,000



               Omega Navigation Enterprises Inc.
                 Consolidated Balance Sheet
           (All amounts expressed in U.S. Dollars)


                                                     June 30,  December 31,
                                                       2006       2005
                                                    (unaudited) (audited)
ASSETS
Current assets:
  Cash and cash equivalents                          67,617,250   5,057,706
  Accounts receivable, trade                            457,540     178,089
  Prepaid expenses and other current assets             411,445       2,202
  Derivative assets                                     737,336           -
  Inventories                                           230,052           -
  Restricted cash                                             -     500,000
                                                    ----------- -----------
     Total current assets                            69,453,623   5,737,997

Non current assets:
  Vessels, net of accumulated depreciation of
   $ 2,373,618 and $ 4,378,308 for December
   31, 2005 and June 30, 2006 respectively          325,986,110  85,490,799
  Advances for vessel acquisition                    11,900,000           -
  Other fixed assets, net of accumulated
   depreciation of $ 694                                 53,686           -
  Deferred financing costs, net of accumulated
   amortization of $ 23,099                             473,136           -
  Initial Public Offering related costs                       -   1,162,957
                                                    ----------- -----------
   Total non-current assets                         338,412,932  86,653,756
                                                    ----------- -----------
    Total assets                                    407,866,555  92,391,753
                                                    =========== ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Bank credit facility                                        -  38,994,035
  Current portion of long term debt                   4,966,552           -
  Seller's notes                                              -  36,000,000
  Accounts payable                                    1,566,776     290,230
  Due to stockholder                                          -     121,731
  Due to manager                                         55,108      55,417
  Accrued liabilities                                 2,534,899   2,383,945
  Unearned income                                       306,260     138,362
                                                    ----------- -----------
Total current liabilities                             9,429,595  77,983,720

Long term debt, net of current portion              188,436,205           -

Shareholders' equity:
  Common stock
  Class A shares, par value $ 0.01–75,000,000 shares
   authorized, 10,000 and 12,010,000 shares issued
   and outstanding as at December 31, 2005 and June
   30, 2006 respectively                                120,100         100
  Class B shares, par value $ 0.01–25,000,000 shares
   authorized, 3,140,000 shares issued and
   outstanding                                           31,400      31,400
  Additional paid-in capital                        196,589,442   9,998,540
  Retained earnings                                  13,259,813   4,377,993
                                                    ----------- -----------
   Total shareholders' equity                       210,000,755  14,408,033
                                                    ----------- -----------
     Total liabilities and shareholders' equity     407,866,555  92,391,753
                                                    =========== ===========



               Omega Navigation Enterprises Inc.
             Consolidated Statement of Cash Flows
¨           (All amounts expressed in U.S. Dollars)

                                                 Six Months
                                                 Ended June   December 31,
                                                  30, 2006        2005
                                                (unaudited)     (audited)
Cash flows from operating activities:
Net income                                         8,881,820     4,377,993
Adjustments to reconcile net income to net cash
 provided by operating activities:
  Depreciation and amortization of deferred
   charges                                         2,028,483     3,745,422
  Amortization of financing costs                     37,485       131,535
  Gain from extinguishment of debt                (5,000,000)            -
  Gain on sale of vessel                                   -    (1,011,785)
  Change in fair value of financial instruments     (737,336)            -
  (Increase) decrease in:
    Accounts receivable, trade                      (279,451)     (178,089)
    Prepayments and other                           (409,243)       (2,202)
    Inventories                                     (230,052)            -
  Increase (decrease) in:
    Accounts payable                               1,276,546       290,230
    Due to manager                                      (309)       55,417
    Accrued liabilities                              150,954     2,383,945
    Unearned income                                  167,899       138,362
    Payments for dry-docking costs                         -      (360,019)
                                                ------------  ------------
      Net cash from operating activities           5,886,796     9,570,809
                                                ============  ============

Cash flows from investing activities:
  Vessel acquisitions                           (242,500,000)  (64,364,417)
  Net proceeds from sale of vessel                         -    21,000,000
  Advances for vessel deposit                    (11,900,000)            -
  Purchases of property, plant and equipment         (54,380)            -
                                                ------------  ------------
      Net cash used in investing activities     (254,454,380)  (43,364,417)
                                                ------------  ------------

Cash flows from financing activities:
  Issuance of common stock and capital
   contributions                                           -    10,030,040
  Proceeds from Initial Public Offering, net of
   related costs                                 187,873,859             -
  Proceeds from bank credit facility             194,300,000    55,000,000
  Initial public offering costs                            -    (1,162,957)
  Principal payments of bank credit facility     (39,000,000)  (16,000,000)
  Principal payments of seller's notes           (31,000,000)   (8,500,000)
  (Increase) / decrease in restricted cash           500,000      (500,000)
  Proceeds from stockholder's short term
   financing                                               -       376,579
  Payments of stockholder's short term
   financing                                        (121,731)     (254,848)
  Financing costs                                 (1,425,000)     (137,500)
                                                ------------  ------------
      Net cash from financing activities         311,127,128    38,851,314
                                                ------------  ------------

Net increase in cash and cash equivalents         62,559,544     5,057,706
Cash and cash equivalents at beginning of
 period                                            5,057,706             -
                                                ------------  ------------
Cash and cash equivalents at end of period        67,617,250     5,057,706
                                                ============  ============

Supplemental disclosure of cash flow
 information:
  Cash paid during the period for bank loan
   interest                                          611,135     2,432,639



                Omega Navigation Enterprises Inc.
   Reconciliation of EBITDA (1) to Cash From Operating Activities
                 (Expressed in U.S. Dollars)


                                                   Three Months Six Months
                                                    Ended June  Ended June
                                                     30, 2006    30, 2006

Net cash from operating activities                   2,711,532   5,886,796
   Net increase / (decrease) in current assets         698,848     918,746
   Net increase / (decrease) in current liabilities
    excluding bank debt                                 (2,200) (1,595,090)
   Gain on extinguishment of debt                            -   5,000,000
   Net interest expense                               (108,119)    753,565
   Amortization of financing costs                     (37,485)    (37,485)
                                                    ----------  ----------
EBITDA                                               3,262,576  10,926,532
                                                    ==========  ==========
(1) EBITDA represents net income before interest, taxes, depreciation and amortization. EDITDA does not represent and should not be considered as an alternative to net income or cash flow form operations, as determined by US GAAP and our calculation of EBITDA may not be comparable to that reported by other companies. EBITDA is included here because it is a basis upon which we assess our liquidity position, because it is used by our lenders as a measure of our compliance with certain loan covenants and because we believe it presents useful information to investors regarding our ability to service and/or incur indebtedness.

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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