BHO Refinances To Acquire Vessel

B+H Ocean Carriers Ltd. has acquired a 98,000dwt OBO, or combination carrier, committed to a Time Charter at $27,000 from delivery through March 13, 2006, plus or minus one month. The vessel will be delivered to the Company during April. This vessel, to be renamed Sachuest, has some particularly attractive attributes in the present market environment, the Company said, including the ability to trade as both a tanker and a dry bulk carrier, plus the fact that it has 24,227 tons of steel with a present salvage value of almost $10 million. The Company stated that it estimates that the vessel will generate EBITDA at a rate slightly in excess of $7 million on an annualized basis, excluding the time and expense for its scheduled drydocking in the third quarter of 2004. The Company added that for the twenty-four month period of the present charter, it expects the vessel to contribute annualized average earnings of approximately $1.00 per share. The Company cautioned that these forward-looking statements are based upon estimated vessel operating expenses and drydocking time and expenses, which may vary from the estimates.