Increasing the fleet

The preliminary agreement with Samsung comprises the construction of two 158,000 gwt tankers each to be delivered to Nordic in the third and fourth quarters of 2011.  The purchase prices of the two newbuilding vessels are stated to amount to $64.5/$65.0m, with about half to be paid on the signature of the definitive contracts and the balance to be paid on delivery.  

Assuming no other acquisitions or dispositions, the delivery of the newbuildings will increase the company's fleet to 20 modern double hull suezmax tankers by the end of 2011. In January 2009, Nordic American Tanker had 12 trading suezmax tankers. At the end of 2011 the trading fleet of the company is expected to reach 20 suezmax tankers - or an increase of 67% over a period of 36 months. During the same period, the Company's share count is expected to have increased by about 36% assuming that no further acquisitions or follow-on equity offerings are made in the meantime.  The definitive contracts with Samsung are expected to be signed at the end of April or in early May 2010.