MIF Maintain Strong Cash Flow

Hamilton, Bermuda, 1 December 1999 - Today, MIF reported unaudited results for the first nine months of 1999. Revenues for the first three quarters grew 17.06% to a record $53.25 million versus $45.49 million during the first nine months of 1998. Income from operations was also a record at $31.09 million, an increase of 6.18% from the like period of 1998. This growth was driven by the fleet expansion program. Since the end of 1997, MIF has added four new buildings, including three Aframaxes built by Imabari and a VLCC built by Hyundai. The resulting fleet of sixteen tankers represents over 1,420,000DWT with an average tonnage age of seven years.

During the first nine months of 1999, three vessels underwent special survey, special maintenance and upgrading, or extended dry-docking. The special non-recurring aspects of these events reduced nine months 1999 net income by over $750,000. In addition, the burden of much heavier depreciation allowances and added interest expense to finance the expansion program reduced profits by 54.5% for the first nine months of 1999 versus the like period of 1998. However, solid cash flow was maintained. Profits of $3.48 million combined with depreciation to provide income before depreciation of $19.62 million, equal to the previous year's cash generation.

This modest level of profits is unsatisfactory. However, considering market conditions and special events, the relative performance is exemplary and we anticipate that few companies in our market sector will be able to match it. These unsettled conditions will continue until growth in energy usage forces a revival in crude and products shipment.

The final months of 1999 and the forepart of 2000 will confront the tanker industry with an extremely negative economic environment. Freight rates will remain below normal. Interest costs will continue to increase. Bunker costs will be punishing. Other operating costs will be under inflationary pressures. Despite the dire atmospherics, we are optimistic about 2000 and beyond.

The world economy is again in a solid mode. Japan is reawakening, Europe is adding steam, while the United States is on cruise control. Equally important, the Pacific Rim has produced a dramatic turnabout. The resultant pickup in energy consumption and the absorption of previous excess stockpiles have set the stage for more normal movements of crude and petroleum products. Demand for petroleum transportation is now poised for recovery.

We are confident that MIF is well positioned to capitalize on these prospects. A youthful fleet, a healthy financial position, and Management's dedication to being a low-cost provider of quality service are the basis for this confidence. We look forward to the coming Millennium.