TEN Takes Delivery Of Panamax Tanker Aztec And Announces Charter Agreement With PMI

Under the terms of the agreement, TEN has chartered its newly delivered coated double-hulled Panamax, the Aztec, to PMI. The contract is for 30 months at an accretive rate. TEN currently has the Handysize product carrier Libra chartered to PMI until 2005.

"We are pleased to furnish PMI with another high-quality vessel to serve their growing production needs," said Nikolas Tsakos, President and CEO of TEN. "TEN is focused on expanding our relationships in this region by building ships that meet our clients' individual requirements and providing superior customer service and support directly to major oil producers like PMI."

The Panamax Aztec was delivered on May 29 from Imabari Shipyards in Japan. The vessel immediately entered into a profitable repositioning voyage with a major oil trading concern, and will then commence the time charter with PMI. The Aztec is the third of four new fully coated Panamaxes, and joins its sister ships, the Maya and the Inca, which were both received earlier this year and recently chartered at attractive rates to a major South American oil producer. TEN plans to receive the last of the four Panamaxes, the Andes, in August 2003.

"The Aztec is the latest addition to one of the youngest and most efficient oil tanker fleets in the world," Mr. Tsakos continued. He added, "Concurrent with TEN's strategy of seeking accretive employment for our vessels, we were pleased to announce that the Aztec began generating revenue the instant she was delivered, which should positively impact earnings and enhance shareholder value."

Currently, TEN has contracted employment for its fleet for 70% and 48% of the remaining operating days in 2003 and 2004, respectively.

ABOUT TSAKOS ENERGY NAVIGATION

With the addition of Aztec, TEN currently operates a fleet of 26 tankers (including one chartered-in aframax and one chartered-in product carrier) comprising 2,538,467 DWT with an average age of 6.4 years, which TEN believes is much younger than the world's tanker tonnage, which has an average age of 12.4 years. Additionally, following delivery this year to date of the Maya, Marathon, Inca and Aztec, TEN is scheduled to take delivery of a further five newbuildings within the next two years. With these five newbuildings (one aframax, one panamax and three handysize product tankers) the average pro-forma age of the fleet will be 7.4 years in March 2005. The resulting fleet of 30 vessels (including only one chartered-in vessel, an aframax) with 2,792,715 DWT will include 19 newbuildings (1997-2004) with 2,093,000 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.