Philly Shipyard - M&A Activity 2015

Aker Philadelphia Shipyard: Philly Tankers Agrees to Sell Four Product Tanker Contracts to Kinder Morgan

Philly Tankers AS announced today that its wholly-owned U.S. subsidiary, Philly

Tankers LLC, has signed definitive documentation with a subsidiary of Kinder

Morgan, Inc. for the assignment of its existing contracts for the construction

of four 50,000 dwt product tankers. The vessels will be constructed by Aker

Philadelphia Shipyard, Inc. and are planned to be delivered between November

2016 and November 2017. Each of the four contracts will be assigned by Philly

Tankers LLC to the Kinder Morgan entity immediately prior to delivery of the

relevant vessel. The transaction is valued at a total of $568 million. It is

anticipated that Philly Tankers' pre-tax gain on the assignment of all four

contracts will be approximately $45 million. Proceeds from the transaction are

expected to be distributed to Philly Tankers AS shareholders after delivery of

all four vessels.

"We are pleased to announce today's transaction with Kinder Morgan as a

successful outcome for Philly Tankers' shareholders. Philly Tankers has made

noteworthy achievements since its inception, including securing long-term

employment for two of its vessels, the opportunistic exercise of its options and

now the assignment of all four of its new building contracts to Kinder Morgan,

which provides an attractive return to Philly Tankers' shareholders." said

Kristian Rokke, Chairman of Aker Philadelphia Shipyard ASA and Board member of

Philly Tankers AS.

An extraordinary general meeting (EGM) of the shareholders of Philly Tankers AS

will be scheduled in the third quarter of 2015 for formal shareholder approval

of the transaction. Under the company's Articles of Association, the transaction

requires approval of shareholders holding 80% of the shares in the company.

Shareholders accounting for over 85% of all shares in the company have already

entered into irrevocable voting undertakings approving the transaction.

About Philly Tankers:

Philly Tankers was established in June 2014 to provide major oil companies and

other end-users with modern tonnage and offer investors pure play exposure

toward the Jones Act tanker space. Philly Tankers is listed on the Norwegian OTC

and is majority-owned by Aker Philadelphia Shipyard ASA, a leading U.S.

commercial shipyard constructing vessels for operation in the Jones Act market.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1944521]

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