(Source: MARKETWIRE)Omega Navigation Enterprises, Inc. (NASDAQ: ONAV) (SGX: ONAV50), a provider of global marine transportation services focusing on product tankers, announced today it has taken delivery of the first of its newbuildings, the 47,000 dwt. Omega Duke. It further announced that it has taken several measures to better position itself to fund its newbuilding commitments from internally generated cash flow. As previously announced, Omega has commitments from commercial banks to provide 75% financing at delivery of all of its remaining newbuildings based on contract prices or fair market values at the time of delivery.

Formation of Joint Venture

In May 2008, Omega announced it had entered in to an agreement with an unrelated third party to purchase two newbuilding 47,000 dwt. coated product / chemical tankers under construction at Hyundai Mipo Dockyard in South Korea. Omega is pleased to announce that the Company and Glencore International AG (through wholly owned subsidiaries) have agreed to enter into an equal partnership joint venture for the purchase of the first of the above vessels. Consequently, the Omega Duke was recently purchased by a Company belonging to the joint venture at a price based on current market valuation. The Omega Duke has been purchased by a combination of previously secured bank financing and equity injected by both partners and will not be consolidated in Omega's financial statements. The owning company has time chartered the vessel to ST Shipping (Glencore International, AG) at current market rates for a period of five years together with an excess profit arrangement. The base time charter rate fully covers operating expenses and debt service.

Time Charter Agreement for Omega Queen

The Company has also announced that they have entered into a time charter agreement with ST Shipping & Transport Pte Ltd. on the Omega Queen with profit share, on an evergreen basis subject to termination notice of two months. The base rate fully covers operating expenses and debt service.

Temporary Suspension of Dividends

Omega's Board of Directors decided to temporarily suspend the Company's dividends. This action will enhance the Company's liquidity and overall financial flexibility enabling it to continue with its growth plans even in these most uncertain times funding its newbuilding program through internally generated funds and bank debt. Omega has commitments from commercial banks to provide 75% financing at delivery of all of its seven newbuildings based on contract prices or fair market values at the time of delivery.