OceanFreight Inc. Reports Second Quarter 2008 Financial Results and Announces Acquisition of Double Hull Aframax Tanker Expanding Fleet to 12 Vessels

August 11, 2008, Athens, Greece. OceanFreight Inc. (NASDAQ: OCNF), a global provider of marine transportation services, today announced its financial results for the quarter ended June 30, 2008.

Financial Highlights

• For the second quarter of 2008 the Company reported Net Income of $23.9 million or $1.65 per common and subordinated share. Excluding a non-cash gain of $10.1 million associated with the valuation of the Company’s interest rate swaps, Net Income for the second quarter of 2008 amounted to $13.8 million or $0.95 per common and subordinated share.

• OceanFreight’s Board of Directors has declared a dividend of $0.77 per share for the second quarter of 2008. The dividend is payable on or about August 14, 2008, to common and subordinated shareholders of record as of August 4, 2008.

Other Developments

• On August 7, 2008, the Company entered into an agreement to acquire the M/T Tamara, a 1990 built double hull 95,793 dwt Aframax crude oil carrier from interests associated with Mr. George Economou for a purchase price of $39 million. Delivery of the vessel is expected within October 2008.

• On August 8, 2008 the Company entered into an agreement to time charter the M/T Tamara for a period of approximately two years to Heidmar LLC at a gross daily rate of $ 27,000 per day. The time charter is expected to commence concurrently with the vessel's delivery to the Company. A company associated with Mr. George Economou owns 49% of Heidmar.

Anthony Kandylidis, the Company’s President and Chief Executive Officer, commented:

“I am pleased with our financial results for the second quarter of 2008, which were driven by the high fleet utilization levels we attained for yet another quarter. With the acquisition of the M/T Tamara and its subsequent time charter to a major U.S. based operator, we continue to deliver on our stated strategy. Our further expansion into the tanker sector enables us to capitalize on the presently attractive rates and the future prospects of that sector.

In the span of 16 months since going public we have grown OceanFreight from a fleet of seven bulk carriers to a fleet of twelve vessels comprised of nine bulk carriers and three crude oil tankers while maintaining a prudent leverage structure. We have declared five consecutive quarterly dividends totaling $3.21 per share. We believe that our high time charter coverage will enable us to continue to pay quarterly dividends consistent with our dividend policy. Our annualized dividend yield based on the closing price of $17.36 on August 8th stands at 18%. Currently, we have fixed under time charter employment 97% of our remaining operating days in 2008, 94% in 2009 and 60% in 2010 basis mid-point redeliveries. The average remaining duration of our contracts is approximately 2.3 years, which translates into significant visibility and predictability. We remain committed to our stated business strategy since we went public of seeking opportunities to grow and diversify our fleet within multiple shipping sectors while we aim to deliver consistent returns to our shareholders.”

Second Quarter 2008 Results

For the quarter ended June 30, 2008, Gross Revenue amounted to $39.9 million and Operating Income amounted to $17.7 million.

Net Income for the second quarter of 2008 was $23.9 million or $1.65 per common and subordinated share calculated on 14,531,896 weighted average common and subordinated shares outstanding. This Net Income figure includes a non-cash gain of $10.1 million associated with the valuation of the Company’s interest rate swaps. Excluding the above non-cash item Net Income for the second quarter of 2008 amounted to $13.8 million or $0.95 per common and subordinated share.

Net cash provided by operating activities was $26,477 and EBITDA for the second quarter of 2008 was $38.2 million1.

An average of 11 vessels were owned and operated during the second quarter of 2008, earning an average Time Charter Equivalent, or TCE, rate of $35,672 per day.

Capitalization

On June 30, 2008, debt (debt, net of deferred financing fees) to total capitalization (debt, net of deferred financing fees, and stockholders' equity) was 58.6% and net debt (debt less cash and cash equivalents) to total capitalization was 52.8%. As of June 30, 2008, the Company had a total liquidity of approximately $31.1 million.

Capital expenditures

One of our Panamax drybulk carriers is scheduled for drydocking for a period of approximately 35 days in the fourth quarter of 2008. It is the policy of the Company to expense drydocking costs as incurred. 1 Please see later in this release for a reconciliation of EBITDA to net cash provided by Operating activities.

Dividend Payment

OceanFreight’s Board of Directors declared a dividend of $0.77 per share in respect of the second quarter of 2008. The dividend is payable on or about August 14, 2008, to common and subordinated shareholders of record as of August 4, 2008. Upon payment of the dividend, the subordination period as defined in our Amended and Restated Articles of Incorporation will end and all of our 2,085,150 outstanding subordinated shares will be converted into common shares.

Since the Company’s listing on the NASDAQ Global Market in April 2007, OceanFreight has declared five consecutive quarterly dividends totaling $3.21 per common and subordinated share.

OceanFreight Inc. press release