SHIP VALUATIONS We at Shipping Intelligence have been valuing ships for some time. We value Individual Ships, Portfolios of Vessels and Company Fleets. We use as the basis for our appraisals our extensive database of ship sales and our knowledge of the market gained from building that database. Our valuations are based solely on the actual transactions of the resale market and our analysis of it. We strive to eliminate any bias or opinion that might influence the final value. A CAUTIONARY NOTE The ship valuation process often becomes newsworthy - primarily because of legal action taken by unhappy investors who seem to feel that they were misled by biased and inaccurate appraisals. Perhaps they were. But the ship resale market is usually so volatile that any estimate of a ship's current worth should have an expiration date - perhaps valid for a month or so. Even if the market were not so volatile, the normal process of depreciation would render any appraisal suspect within a year. Further, while ship's worth is usually meant to mean the resale price between willing buyer and willing seller, that is rarely the case when prior valuations are called into question. Using willing buyer/willing seller appraisals to evaluate collateral in a distress or bankruptcy situation is unrealistic and unwise; in such cases, current valuations provide only a ceiling below which actual prices will be found - sometimes far below.

SHIP VALUATIONS The Shipping Intelligence SHIP VALUATION (DESK APPRAISAL) is available for a wide range of sizes and ages of many vessel types. Appraisals can be prepared for any date, current or within the past 20 years. The SHIP VALUATION (DESK APPRAISAL) is unique in providing: SHIP MARKET VALUE. CONFIRMING COMPARABLE SALES. HISTORICAL CONTEXT. Each SHIP VALUATION (DESK APPRAISAL) consists of four parts: (1.) SHIP MARKET VALUE. The value as of the date specified. (2.) COMPARABLE SALES. Actual sales that provide real market confirmation of the calculated value for the date specified. These actual sale prices are adjusted, where appropriate, for differences in age, deadweight and market volatility. (3.) DISTRIBUTION OF HISTORICAL SHIP RESALE PRICES. Graphic display of how much such ships (of similar type/deadweight/age) have sold for in the past, and with what frequency. The position of the current resale value in the distribution is indicated. (4.) DISTRIBUTION OF EXPECTED FUTURE PRICES. Graphic display of how much such ships (of similar type/deadweight/age) have sold for one year after selling for the appraised value in the past. Note: Less comprehensive appraisals are available for ship types other than tankers and dry bulk carriers. Those valuations are based primarily on comparable sales since there is insufficient data for fuller analysis for those ship types. Inquiries should be directed to: Sydney P. Levine, President SHIPPING INTELLIGENCE, INC. P.O. Box 1019 New York, NY 10024 USA Tel: (212) 997-0966, Fax: (212) 595-7918 Send email to: SPL@SHIPINTEL.COM