AMSC ASA — Share Issue/Capital Change 2014

Jun 10, 2014

American Shipping Company ASA : AMERICAN SHIPPING COMPANY TAKES STAKE IN PHILLY TANKERS AS

American Shipping Company ASA : AMERICAN SHIPPING COMPANY TAKES STAKE IN PHILLY TANKERS AS

Highlights

* AMSC to invest USD 25 million for  a 20% stake  in Philly Tankers AS,

alongside AKPS and a group of leading U.S. financial investors

* Philly Tankers to order two eco-design product tankers to be built at AKPS,

with options for two additional vessels, to operate in the Jones Act market

* The investment confirms AMSC's stated strategy to pursue accretive growth

opportunities in the Jones Act market

OSLO, NORWAY (10 June 2014) - Reference is made to stock exchange release on 14

March 2014, in which American Shipping Company ASA (OSE: AMSC) announced that it

had entered into discussions with Aker Philadelphia Shipyard ASA (OSE: AKPS)

regarding possible product tanker newbuilds

AMSC is pleased to announce that the Company has agreed to invest USD 25 million

to help create Philly Tankers AS, alongside AKPS and a group of leading U.S.

financial investors. Philly Tankers will be a pure play exposure to the Jones

Act market with ownership of two eco-design product tanker newbuilds to be

delivered by AKPS in Q4 2016 and Q1 2017 and with options for two additional

newbuilds for delivery in Q3 and Q4 2017.

Philly Tankers will be listed on the Norwegian OTC by mid-July 2014, with a

target of a U.S. listing by mid 2016.  AMSC will hold an approximate 20% stake

in the company and will have a seat on the Board of Philly Tankers.

"The surge in US shale oil production is continuing and AMSC believes that

modern product tankers offer an attractive value proposition in this buoyant

market," says Dag Wittusen, CEO of AMSC.  "We think Philly Tankers is an

interesting opportunity for AMSC considering the possibilities ahead.  We are

therefore delighted to be joining AKPS and leading U.S. financial investors who

share our ambition of pursuing accretive growth opportunities in the Jones Act

market".

Further information about Philly Tankers AS is provided in today's stock

exchange announcement from AKPS.

The completion of AMSC's investment is conditional upon shareholder approval at

an extraordinary general meeting to be held on or about 4 July 2014.

About American Shipping Company ASA:

AMSC is a shipowning company with ten modern handy size product tankers on long

term bareboat charter with Overseas Shipholding Group (OSG). OSG charters the

vessels out on time charters to major oil companies in the U.S. coastwise Jones

Act trade.  AMSC has a significant contract backlog as well as a profit sharing

agreement with OSG which offers visibility with respect to future earnings and

potential dividend capacity. The Company has an ambition to pay attractive and

growing dividends to its shareholders.

Contacts at American Shipping Company ASA:

Dag Fasmer Wittusen, CEO

Oslo, Norway

Tel: +47 916 300 02

Pål Magnussen, CFO

Oslo, Norway

Tel: +47 905 45 959

Leigh Jaros, Business Controller/Finance Manager

Pennsylvania, USA

Tel: +1 (484) 880- 3741

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