Tsakos Energy Navigation Exercises Options For Two Ice-Class 1A Product Carriers

Navigation Limited (TEN) (NYSE: TNP) today announced that it has exercised options for two handysize, double hull, 1A ice-class tankers, with carrying capacity of 37,000 dwt each. The vessels have a contract price of just under

$30 million per ship and are scheduled for delivery in March and June of 2007. These vessels are sister ships to the newbuildings announced in January of this year. The vessels are to be constructed by Hyundai Heavy Industries at

their Mipo shipyard, and represent the 28th and 29th vessels in TEN's newbuilding program since 1997.

These vessels are specifically designed to meet the stringent requirements of classification societies and other regulatory bodies, the rules and guidelines of oil majors and various port authorities and terminals relating to environmental protection. They can also carry all petroleum products including all types and categories of aviation fuels and light chemicals

including alcohol and MTBE, the "green", environmentally friendly additive in gasoline. Additionally, the vessels adhere to the Finnish Maritime Authority (FMA) standards, which ensure high structure strength for operation in areas

with heavy ice presence.

"With the exercise of these options, TEN has clearly illustrated its commitment to maintain a diversified fleet which meets the growing needs of its clients," said Nikolas P. Tsakos, President and CEO of TEN. "These environmentally friendly, high-specification vessels have the opportunity to earn a significant premium for their trading versatility. We expect future

demand for this type of vessel to increase, and by building these vessels now, TEN joins an exclusive fraternity of shipowners who participate in this specialized segment of our industry."

Early market indicators have shown that exports from the Former Soviet Union (FSU) are expected to grow 8% in 2004. With ongoing export expansion projects in the Baltic Sea, the Black Sea and the Sakhalin Islands in the Far East, Russian exports are expected to account for more than 60% or 0.8 million barrels per day of the incremental global oil production growth in 2004.

During winter, in order to transport crude or products from various loading ports in Lithuania, Estonia, Latvia and Russia, tankers with enhanced ice class specification become a necessity. TEN's entry into this rapidly expanding market significantly enhances its global reach and fleet diversity.

Mr. Tsakos continued, "As the FSU returns to the global oil market, the continuous expansion of their production and export program and the desire of our clients to reach this source, regardless of weather or port conditions, make this an extremely advantageous time to begin construction of these vessels." He concluded, "We believe that these newbuildings will provide another opportunity for TEN to increase its earnings potential, and increase

shareholder value."

Out of 28 vessels, TEN currently has 21 operating with medium or long-term employment contracts, some at variable rates, accounting for 65% of the operating days for 2004. These contracts will generate a minimum of approximately $135 million in revenues, which should provide a sustainable flow of earnings and enhanced shareholder value. The company currently

employs its remaining 7 vessels in the spot market, including the new VLCC.

Currently, 90% of TEN's fleet is of the double hull design. Including options, TEN's fleet is expected to grow to 42 vessels by 2007.

ABOUT TSAKOS ENERGY NAVIGATION

Including the addition of the M/T La Madrina, TEN currently operates a fleet of 28 vessels (including one chartered-in aframax, the Olympia, and the two suezmaxes, the renamed Cape Baker and Cape Balboa, recently the subject of the sale and charter-back deal). The fleet comprises 2,981,252 DWT and has an average age of 6.9 years, compared to the average for the world's tanker tonnage which has an average age of 12.8 years. TEN is scheduled to take delivery of a further eleven newbuildings between 2004 and 2007. The Company also has an option for 1 additional handysized tanker for delivery in 2004.

The resulting fleet of 39 vessels (excluding the option but including the chartered-in aframax and suezmaxes) with 3,896,252 DWT will include 27

newbuildings (1997-2007) with 2,897,313 DWT.