Nordic American Tanker Shipping Ltd. (the Company) – (NYSE:NAT) Letter to Shareholders from the Chairman & CEO

Hamilton, Bermuda, April 17, 2007

Dear Shareholder,
The spot tanker market during the first months of 2007 has been strong.  The average Imarex Tanker Index for suezmax vessels for the first three months of 2007 was $41,877 per day compared with $39,727 for 4q06. The average Imarex rate during April up to April 16th was $45,300 per day. The volatility of the spot market can be expected to continue.
1q07 was the first quarter in which we have had the full benefit of our 12 vessel fleet.  11 of our 12 vessels are employed in the spot market.  Our analysis shows that spot employment yields a better return over time than fixed rate time charters.
We expect to announce our dividends and earnings report for 1q07 before the opening of NYSE May 14th with expected payment of dividend May 31st to shareholders of record May 23rd.
By growing the fleet, we have significantly increased the Company’s dividend and earnings capacity per share.  In the process, we have reduced the average age of our fleet.  We expect to grow the Company’s fleet further while the timing of the growth cannot be predicted with precision.  Our goal is to ensure that the Company’s earnings and dividend per share after an acquisition and the financing thereof are higher than the earnings and dividend per share before the acquisition, at the same prevailing spot rate level.
We shall continue to operate a modern and homogeneous fleet, focusing on environmentally friendly suezmax tankers with double hull (one million barrel vessels).

The Company has a unique operating model developed at the drawing board stage in order to meet the requirements of investors. We have witnessed the solid total return our model has produced over time. With a low cost base, strong balance sheet and our net cash flow from operations distributed every quarter to shareholders, we have achieved an aggregate total return of 287% during the period January 1st 2004 up to April 16th 2007. This is a strong performance compared with other listed tanker companies.  Total return includes dividend paid, share appreciation and assumes that the dividend paid has been reinvested in the stock. 
The benefits of our model are also supported by an analysis of a major international investment bank.  The analysis shows that companies with a high dividend yield achieve a better pricing of their shares compared with others, thereby increasing the  total return for shareholders.
Our Company is in a good position for further expansion and progress.  Longer term prospects for the tanker market depend, above all, upon developments at the macro-economic level.  It is positive that growth in Asia seems to continue, resulting in increased demand for tankers.

In summary, our main objective continues to be value creation via a transparent, predictable and clear strategic platform based on a unique operating model. We encourage investors wishing to have tanker exposure to assess our operating model and to invest in our Company.
For further details on our Company, please see

Nordic American Tanker Shipping Ltd.
Herbjørn Hansson
Chairman and CEO
Matters discussed in this press release may constitute forward-looking statements.  The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business.  Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,” “potential,” “will,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties.  Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.  We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the tanker market, as a result of changes in OPEC’s petroleum production levels and world wide oil consumption and storage, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hire, failure on the part of a seller to complete a sale to us and other important factors described from time to time in the reports filed by the Company with the Securities and Exchange Commission, including the prospectus and related prospectus supplement, our Annual Report on Form 20-F, and our reports on Form 6-K.
Scandic American Shipping Ltd 
Manager for:
Nordic American Tanker Shipping Ltd.
P.O Box 56, 3201 Sandefjord, Norway
Tel: + 47 33 42 73 00 E-mail:
Rolf Amundsen, Investor Relations
Nordic American Tanker Shipping Ltd.
Tel: +1 800 601 9079 or + 47 908 26 906
Gary Wolfe
Seward & Kissel LLP, New York, USA
Tel: +1 212 574 1223
Herbjørn Hansson, Chairman & CEO
Nordic American Tanker Shipping Ltd.

Tel:  +1 866 805 9504 or + 47 901 46 291

Press Release (PDF)