B+H Ocean Carriers Ltd. Announces Nine-Months Ended September 30, 1999 Earnings Results and Completion of Its Fleet Restructuring.

Business Editors

NEW YORK--(BUSINESS WIRE)--Dec. 31, 1999

B+H Ocean Carriers Ltd. (AMEX:BHO) announced revenues and income estimates for the nine months ended September 30, 1999, and the completion of its major fleet restructuring begun in the second quarter of this year. The Company noted that it scrapped five of its 1970's built Medium Range 30,000 DWT Product Tankers and acquired from Chevron six MR 35,000 DWT Product Tankers, built 1981 - 82 - 83. The aggregate purchase price for the Chevron ships was $46 million. Four of the vessels were chartered back to Chevron for varying terms averaging 18 months per vessel. The Company stated that it has renewed its MR Product Tanker fleet with 15 of its total 17 tankers being built in the 1980's. The Company's wholly owned subsidiary, Equimar Shipholdings Ltd., bought two of the six vessels acquired from Chevron. Another wholly owned subsidiary of the Company acquired the other four vessels, which was financed by a $27 million bank facility.

Michael Hudner, Chairman of BHO, noted that the acquisitions have significantly changed the Company's fleet profile and minimized its exposure to the spot market. He observed that a year ago the Company had 18 tankers of which 9 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 now has 17 product tankers of which 15 were built in the 1980's including 12 that are on fixed rate employment. The vessels currently employed on fixed rate period charters represent approximately 80% of the dollar value of the Company's fleet, and are expected to produce a like percentage of EBITDA the Company expects to generate during 2000.

The Company estimates for the three-month period ended September 30, 1999 EBITDA (earnings before interest, taxes, depreciation, amortization and non-recurring charges including restructuring and value impairment of assets) of approximately $2,800,000, of which approximately $1,900,000 occurred in the month of September, 1999 - after all of the Chevron ships were delivered and the restructuring was completed. The estimate compares with EBITDA of $3,500,000 for the three months ended September 30, 1998. The Company estimates a loss of approximately $4,900,000,after depreciation, interest and approximately $1,500,000 of nonrecurring charges for the three months. This compares with a loss of $1,900,000 for the three months ended September 30, 1998. The non-recurring charges were attributable to the impairment of value of a vessel that was designated for renewal and subsequently sold.

For the nine months ended September 30, 1999, the Company estimated EBITDA of approximately $10,200,000 as compared with EBITDA of $17,400,000 for the nine months ended September 30, 1998. For the nine months ended September 30, 1999, the Company estimates a loss of approximately $15,900,000, compared to income of $1,500,000 for the nine months ended September 30, 1998. The estimated loss for the 1999 period was partly the result of non-recurring charges of approximately $6,900,000 related to impairment of value on vessels sold and additional restructuring expenses of approximately $1,800,000. The Company noted that the results from spot trading particularly during the first two quarters of 1999, were the worst experienced in this product sector since 1985. It noted, however, that the market has improved since the first quarter, although still below the reasonable levels experienced in mid - 1997.

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.