Tsakos Energy Navigation (TEN) Reports Profits For Full Year 2002

FOURTH QUARTER HIGHLIGHTS

-TEN reports operating EPS of $0.37 excluding non-cash charges

-Company takes delivery of two new buildings

-TEN confirms joint venture to transport LPG

-Company pays first semi-annual cash dividend

FULL YEAR HIGHLIGHTS

-TEN reported net income of $1.12 per share excluding non-cash charges

-Fleet expansion continued with the delivery of five new buildings

-Company raised incremental equity of $110 million

-Ten listed shares on the NYSE under symbol TNP

-Board of directors declared cash dividend distributions totaling $0.70 per share with respect to 2002 operations

Net revenues (revenues less commissions) for the fourth quarter of 2002 were $41.10 million compared with $28.70 million in the fourth quarter of 2001 reflecting the significant expansion of the fleet in the interim. Net income for the fourth quarter of 2002 was a loss of $4.77 million compared to income of $4.5 million in 2001. Net income excluding non-cash charges of $11.11 million for valuation adjustments for past and present interest rate swaps of $ 0.33 million and value impairment of two single-hulled vessels of $10.78 million was $6.34 million in the fourth quarter of 2002 compared with $3.86 million in the like period of 2001. Basic earnings per share, based on the weighted average number of shares outstanding, was a loss of ($0.28) in the fourth quarter of 2002 compared to earnings of $0.46 per share in the comparable 2001 quarter. Excluding the effects of the non-cash charges, earnings per share were $0.37 versus $0.40 in the prior year's quarter. The principal factor was the increase in the number of shares outstanding arising from the share issuance in March 2002.

The interest and finance costs of the fourth quarter of 2002 included $0.54 million of non-cash expenses arising from changes in the fair value of present interest rate swap agreements. Assuming these contracts are maintained until their maturities ($45 million nominal - July 2003 and $100 million nominal - July 2004), which is the current intent, these unrealized losses will be recovered. Impairment of vessel expenses in the fourth quarter of 2002 included a non-cash charge of $10.78 million reflecting the impaired value of two single-hulled vessels, an Aframax (Panos G) built in 1981 and a Panamax (Liberty) built in 1981. The tragic sinking of the Prestige in late 2002 on the heels of the Erika in 1999 has had a negative impact on the employment opportunities and prospective revenues of older single hull crude oil and heavy products carriers. Management has taken the precaution to assess the prospects of such vessels on a prudently conservative basis leading to the decision to carry two such vessels at reduced valuations equal to current market prices. Future developments will be closely monitored for their impact on single hull vessels, their employability and valuations.

FULL YEAR 2002 RESULTS

Net revenues (revenues less commissions) for 2002 were $123.64 million versus $118.65 million in the comparable 2001 period. The modest increase in revenues was attributable to the significant fleet expansion, which offset the cyclical weakness in the charter markets for all types of tankers during the first ten months of 2002. Operating income for 2002 was $14.43 million compared with $37.97 in 2001. Excluding the non-cash charge for value impairment, operating income for 2002 was $25.21 million versus $37.97 million in 2001. The dominant difference was an increase of $11.40 million in voyage expenses arising from a much larger number of spot market engagements and the related spike in bunker prices. Other operating expenses exclusive of depreciation and amortization were $36.85 million in 2002 as against $32.88 million in 2001 largely as a result of higher insurance rates, repair costs, and expansion of the fleet from 16 vessels at year end 2001 to 21 ships at the end of 2002. Depreciation and amortization totaled $28.74 million in 2002 up from $26.37 million in 2001 as a result of fleet expansion. Interest and finance costs were $11.39 million in 2002 down from $14.54 million in 2001. These costs included net non-cash valuation adjustments for present and past interest rate swaps of $2.98 million and $1.57 million, in 2002 and 2001, respectively. This most welcome reduction in interest costs arose from much lower interest rates that more than offset the significant increase in loans outstanding.

Net income for 2002 was $3.89 million compared to $24.6 million in 2001. Excluding non-cash charges for valuation adjustments for interest rate swaps and value impairment of two vessels totaling $13.77 million, net income for 2002 was $17.66 million versus $26.19 million excluding an $1.57 million non-cash valuation adjustment in 2001. The principal difference in the two periods was the very weak chartering market during the second and third quarters of 2002. Basic earnings per share based on the basis of weighted average shares, including vessel impairment charges, was $0.25 for 2002 compared with $2.56 for 2001. Basic earnings per share adjusted for net non-cash charges were $1.12 and $2.70 in 2002 and 2001, respectively.

Results for 2002 were driven by a chartering environment significantly different from that of 2001. Cutbacks in OPEC quotas and production depressed employment for VLCCs and filtered through all tanker sizes. Spot market rates for aframaxes, panamaxes, and products carriers during the first ten months were reported to be down more than 50% from the levels of the first ten months of 2001. TEN believes its revenues were relatively cushioned in this environment as a result of the company's strategy of employing a significant portion of its vessels under longer-term charters or contracts and due to the composition of its fleet. TEN became active in the suezmax market during the second half of 2002 with the delivery of four new buildings and has benefited from the modest rebound in late 2002 and particularly from the robust market of early 2003.

DIVIDEND ANNOUNCEMENT

TEN also announced today that its Board of Directors has declared the Company's latest cash dividend of $0.20 per common share, payable April 30, 2003 to stockholders of record on April 14, 2002.

DEBT FINANCING 2002

Bank loans increased by a net of $141.5 million in support of the fleet expansion program that added $220 million in vessel investments. Financing of TEN's ongoing newbuildings program is well advanced. The Company has arranged loans for two aframaxes and two of four panamaxes to be delivered in 2003. Two panamaxes expected to be delivered in the second half of 2003 and three handy sized tankers expected to be delivered in 2004 will be financed partially by bank loans.

FLEET STRATEGY

TEN's newbuilding program, commenced in 1997, reflects the basic objective of TEN to achieve, at an early date, a fleet comprised of only young, high-specification vessels designed to serve the diverse crude oil and oil products transportation requirements of its clients. By building a series of sister ships Ten has achieved operating economies and a high degree of standardization to facilitate its charterers' needs. The average tonnage age is projected on a pro-forma basis at the end of the current new buildings program at 6.8 years which is much younger than the current industry average, which is estimated to be 12.4 years.

The Company intends to further reduce the average age of its fleet through judicious sales of its older vessels. As a result management believes it can benefit from an increasingly demanding charter market with expanded premiums for quality ships and service.

This fleet renewal together with a balanced employment profile combining medium or longer term charters with spot market charters should provide a sustainable and growing stream of revenues and manageable expenses.

ECONOMIC FRAMEWORK

The economic outlook for 2003 remains unclear. The U.S. is experiencing a spotty recovery with a sharp reduction in capital spending by corporations. Europe's rebound is highly strained with the added pressure of a strong currency. Japan is struggling with the misery of recession compounded by enduring deflation. The exports-reliant economies of the Pacific Rim are presently strong but ultimately dependent on the strength of their trade partners. Meanwhile the Latin American region is burdened with difficult adjustments. Thus energy and petroleum demand remains constrained by the slow growth of the world economies. High scrappage in 2002 largely offset new deliveries. However, scrappage could be constrained this year by the robust charter market and only partially offset by the fallout of the Prestige and Erika incidents.

TANKER PROSPECTS IN 2003

The low levels of petroleum and product inventories on a worldwide basis combined with the early arrival of winter and persistently low temperatures in much of the northern hemisphere have bolstered demand despite the subdued economic backdrop. The oil workers strike in Venezuela has altered normal trade flows and increased transportation requirements. Meanwhile OPEC has raised its quotas and the availability of oil from the Middle East in response to the spike in oil prices. The combined effects of these events have produced a dramatic surge in the spot market rates for all types of tankers and in particular quality tonnage. The earliest beneficiaries were the larger tankers; i.e. VLCCs and Suezmaxes. More recently the rates for the smaller crude carriers such as Aframaxes and Panamaxes have similarly increased arising from increased shipments from Mexico and South America, including the renewed flow from Venezuela. Products carriers are also in greater demand reflecting inventory rebalancing as a partial hedge in a high crude oil cost environment. Rates for longer-term time charters have firmed from the depressed levels of 2002, but have moved up only marginally in comparison with the surge in the spot market. Many industry observers speculate that the gap will close via a cooling of spot rates and a further strengthening in time charter rates during the second-half of 2003.

TEN'S EXPECTATIONS

TEN's fleet is currently enjoying the benefits of the surge in spot market rates including several of its late 2002 and early 2003 new deliveries. Year to date, the average TCE rate for the fleet has risen to approximately $22,600 from an average of $16,200 for the whole of 2002. Nevertheless in concert with its stated strategy of maintaining a balanced fleet employment profile, the Company will seek attractive medium or long-term contract charters in the coming months. Combined with an emphasis of prudent cost containment the company believes it can realize sustainable growth in earnings.

The principal near term challenges on the cost front include: higher bunker prices affecting TEN's vessels on spot charter, increased insurance rates, and generally rising operating expenses due to weakened U.S. dollar impacting about one-fourth of such expenses.

Management and the Board of Directors of TEN remain optimistic as to the long-term prospects for the tanker industry and the Company. Actions during the past year that underscore and affirm this view include:

· The declaration of the two semi-annual dividends totaling $0.70 per share related to 2002 operations;

· The further expansion of the new buildings program designed to accelerate the basic strategy of developing a young and growing fleet serving the diverse and growing needs of our customers;

· The creation of a joint venture, LauriTen, thereby expanding into the promising liquefied petroleum gas (LPG) transport market; and

· The authorization and implementation of a share repurchase program to highlight the view that the prevailing share price does not reflect the underlying value and prospects of the enterprise.

ANNOUNCEMENT OF CONFERENCE CALL

On Friday, February 28, 2003 at 8:30 A.M. Eastern Time, TEN will host a conference call to review fourth quarter and year end results as well as management's outlook for the business. The call, which will be hosted by TEN's senior management team, may contain information beyond what is included in the earnings press release.

To participate in the call from United States and Canada, please dial (800) 946-0706 approximately five minutes prior to the start time. To participate in the call outside the United States, please dial (719) 457-2638 five minutes prior to the start time. The Conference ID is 414587.

ABOUT TSAKOS ENERGY NAVIGATION

TEN currently operates a fleet of 24 tankers (including one chartered-in aframax and one chartered-in product carrier) comprising 2,400,400 DWT with an average age of 6.2 years, which TEN believes is much younger than the world's tanker tonnage, which has an average age of 12.4 years. Additionally, TEN is scheduled to take delivery of seven newbuildings. With these seven newbuildings (one aframax, three panamaxes and three handymaxes) the average pro-forma age of the fleet will be 6.8 years in June 2004. The resulting fleet of 30 vessels (including one chartered-in aframax) with 2.9 million DWT will include 19 newbuildings (1997-2004) with 2.1 million DWT. In addition, since October 2002 TEN has entered into a strategic joint venture with Lauritzen Kosan A/S of Denmark, initially jointly owning four modern LPG carriers. Consistent with the Company's strategy, to offer its customers a young and growing fleet, TEN will seek additional attractive opportunities to contract for new vessels and to dispose of older vessels.

Forward-Looking Statements

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. TEN undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.