Nordic American Tanker Shipping Ltd. ("NAT" or "the Company") today announced its dividend and results for the 2nd quarter of 2009.

The Company is committed to continuing its simple, transparent and predictable strategy. Over time the fleet must grow faster than the share count in order to provide for accretion. A full dividend payout policy and a strong balance sheet are central components of this strategy. Typically, as in the past, the amount of the quarterly dividend is related to the level of the spot freight market for suezmax tankers. Generally, when rates in the suezmax market are increasing, the dividend can be expected to increase and conversely quarterly dividend can be expected to decline in a weaker market. Suezmax spot freight rates were lower in the 2nd quarter than in the 1st quarter of 2009. Going forward, we expect that spot suezmax freight rates may go up and down in an unpredictable manner.

The Company will pay a dividend of $0.50 per share on or about September 4, 2009, to shareholders of record as of August 21, 2009. Following this dividend payment, the Company will have paid a dividend for 48 consecutive quarters since the autumn of 1997 when the first three vessels in the Company's fleet were delivered and commenced operations. Earnings per share (EPS) from continuing operations for 2Q09 came to $0.09. Non-cash G&A items for the quarter, including one-time costs in connection with the follow-on offering in May 2009, constitute $0.09 per share, resulting in net income of $0.00 per share.

The present instability in the international financial markets is serious for debt laden shipping companies and some of them are forced to suspend dividends or change their dividend policy. NAT is staying its course in this environment - having no net debt. Because of this exceptionally strong financial situation of the Company - both in absolute and relative terms - and its sound strategic position going forward, it has been decided to round upwards the dividend for this quarter to $0.50 per share which is somewhat more than the operating cash flow[1].

Our primary objective is to maximize total return[2] to our shareholders including maximizing the quarterly cash dividend.

The Company does not believe it is in the interest of shareholders to engage in any type of derivatives.

Highlights:

 --  The Board of Directors has declared a dividend of $0.50 per share in     respect of 2Q09. For the last four quarters, including the dividend to be     paid for 2Q09, a total of $3.86 has been declared in dividends, which     represents 12.1% of the average daily share price over the same period.      --  Net income for 2Q09 was $0.00 per share based on the weighted average     number of shares outstanding during the quarter, 39,978,227, compared to     $0.46 per share for 1Q09. To put this into perspective, net income was also     about zero during the last two quarters of 2007.      --  In 2Q09 total off hire for the Company's fleet was 22 days. There are     no planned dry-dockings for any of the Company's vessels until 2010 when     one vessel is scheduled for dry-docking.      --  On May 18, 2009, the Company completed an underwritten public offering     of 4,225,000 common shares which strengthened its equity by approximately     $130 million. This offering increased the capacity of the Company to make     further accretive acquisitions.      --  In early May the Company announced that it had agreed to acquire a     2002 built double hull suezmax tanker. On July 7, 2009, the Company took     delivery of this vessel, named the Nordic Grace, thereby increasing the     fleet by two vessels - to 16 vessels (including two newbuildings to be     delivered) - during the two first quarters of 2009.      

Financial Information:

The Board has declared a dividend of $0.50 per share in respect of 2Q09. In 1Q09 $0.88 per share was declared. The amount of dividends per share is above all a reflection of the level of the spot tanker market during the relevant quarter and the number of shares outstanding. The weighted average number of shares outstanding for the second quarter 2009 was 39,978,227. The total number of shares outstanding as of the date of this report is 42,204,904.

With the payment of the dividend in respect of 2Q09, the Company has for the last four quarters paid dividends in the aggregate of $3.86 per share, representing a yield of 12.1% per annum based on the average daily share price during the 12 months ended June 30, 2009.

Net income for 2Q09 was -$0.1m, or $0.00 per share (EPS) compared to net income of $17.2m, or $0.46 per share for 1Q09. Non-cash G&A items, including one time non-cash costs in connection with the follow-on offering constitute $0.09 per share. In contrast to other issue related costs, this non-cash item is booked against the profit and loss account in the Company's statement of operations. The Company's operating cash flow was $17.0m for 2Q09, compared to $33.3m for 1Q09.

We consider our general and administrative costs per day per ship to be at a low level. We also continue to have a strong focus on keeping our vessel operating costs low, while always maintaining our commitment to safe vessel operations.

We estimate that our average cash breakeven level for our 14 existing vessels is below $10,000 per day per vessel. When the freight market is above this level, the Company can be expected to pay a dividend. The breakeven rate is the amount of average daily revenues our vessels would need to earn in the spot market in order to cover our vessel operating expenses, voyage expenses, if any, cash general and administrative expenses, interest expense and other financial charges.

The Company has no net debt and has an undrawn revolving credit facility of $500 million.