B+H Acquires Chevron Tankers.

NEW YORK--(BUSINESS WIRE)--Aug. 6, 1999--

B+H Ocean Carriers Ltd. (AMEX:BHO) announced today that it had completed a major restructuring during the first half of 1999. It said it had scrapped five of its 1970's built Medium Range 30,000 DWT Product Tankers and had acquired six MR 35,000 DWT Product Tankers built 1981 - 82 - 83 from Chevron. The enbloc purchase price was $46 million and four of the vessels have been chartered back to Chevron for varying terms averaging 18 months per vessel. The Company stated that it had now renewed its MR Product Tanker fleet with 15 of its total 17 tankers being built in the 1980's and with two 1970's tankers remaining. Two of the six vessels acquired from Chevron were bought by the Company's wholly-owned subsidiary, Equimar Shipholdings Ltd. The other four vessels were acquired by another wholly-owned subsidiary of the Company and financed by a $27 million bank facility.

The Company said that it has significantly restructured its fleet and employment coverage to minimize exposure to the spot market. The Company observed that a year ago it had 18 tankers of which nine were built in the early to mid-1970's and traded exclusively in the spot market, which made the Company vulnerable to the extremely depressed level of product tanker trading realized earlier this year. However, as a result of the Chevron transaction, the Company added, it now has 17 product tankers of which 15 were built in the 1980's including12 which are on fixed rate employment and represent approximately 80% of the dollar value of the Company's fleet.

The Company said that for the six month period ending June 30, 1999 its estimated EBITDA (earnings before interest, taxes, depreciation, amortization and non-recurring charges including restructuring and value impairment of assets) was approximately $7,200,000. This compares with $13,900,000 EBITDA for the six months ended June 30, 1998. For the six months ended June 30, 1999, the Company reported an estimated loss of approximately $11,100,000 as compared to earnings of $ 3,580,000 for the six months ending June 30, 1998. The estimated loss for the 1999 period included non-recurring charges of approximately $5,400,000 related to impairment of value on vessels sold, and restructuring expenses of approximately $1,800,000, principally the carrying costs of certain vessels designated for renewal and subsequently sold. The Company noted that the results of spot trading during the six months ended June 30, 1999, particularly the first three months, were the worst since 1985 in the product sector. It also noted however that the market had improved since the first quarter.

Based upon present market conditions, the restructured composition of its fleet and the present employment profile of the fleet, the Company estimates an EBITDA of approximately $ 25,400,000 on an annualized basis of which approximately 80 % is expected to be generated by vessels employed on fixed rate period charters. This assumes that the sixth and final Chevron vessel will be delivered in early September.

The forward looking information represents the Company's opinion, but actual results may differ materially based upon changes of circumstances or an inability to operate vessels at projected costs, deterioration of market conditions, or loss of any present employment contracts.

The Company owns 17 MR product tankers including one to be delivered in September, and three bulk carriers.