On 5 August 2009, Aker Philadelphia Shipyard ASA (AKPS) issued a press release disclosing, among other things, that it had become an active participant in the negotiations between its customer, American Shipping Company ASA (AMSC), and AMSC’s charterer, Overseas Ship holding Group, Inc. (OSG), to settle all of their commercial disagreements.

Since the 5 August 2009 press release, AKPS, AMSC and OSG have signed a nonbinding settlement proposal. The proposal is intended to resolve certain issues facing AKPS and described in the 5 August 2009 press release, principally its ability to maintain adequate liquidity to continue the 12-ship build program for AMSC.

The proposal also provides for the dismissal with prejudice of all the claims in the arbitration among the parties and contains a number of provisions materially altering the prior agreements among the parties. The proposal is non- binding and there can be no assurance that the parties will enter into definitive agreements on these new terms or on any terms. In addition, the proposal is subject to certain conditions precedent, including the receipt of third party approvals from various lenders and governmental authorities, the execution and delivery of satisfactory definitive documentation, and the completion of satisfactory due diligence.