OceanFreight Inc. Reports Financial Results for the Third Quarter 2009

OceanFreight Inc. Reports Financial Results for the Third Quarter 2009 November 10, 2009, Athens, Greece. OceanFreight Inc. (NASDAQ: OCNF), a global provider of marine transportation services, today announced its financial results for the quarter ended September 30, 2009.

Financial Highlights

For the three-month period ended September 30, 2009, the Company reported Net Loss of $13.3 million or basic and diluted loss per share of $0.15. Included in these results are:

• A book loss of approximately $20.8 million associated with the sale of the M/V Richmond which was delivered to the new owners on September 30, 2009.

• A loss of $2 million associated with the change in fair value of interest rate swaps. Excluding the above items Net Income for the third quarter of 2009 would be $9.5 million or $0.11 per share.

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

“Excluding the one off charges due to the sale of an older panamax vessel, our net income on an operating basis would have been about 11 cents per share, well above analyst expectations. OceanFreight is very privileged not to have any capital commitments at this time. With our proven access to capital and our track record of sourcing modern high quality tonnage with fixed employment we continue to renew our fleet and enhance the longevity of our cash flows. As of the day of this press release we have secured gross revenues of $115 million until the end of 2010 with 92% fleet charter coverage for the remainder of 2009 and 72% for 2010. We remain uniquely positioned among our competitors to use fresh capital to finance asset opportunities at historically low values, which we believe will be accretive to shareholder value over the long term.”

Fleet Developments

• The Company delivered to their new owners the vessels M/V Lansing, the M/V Richmond and the M/V Juneau on July 1, 2009, September 30, 2009 and October 23, 3009, respectively, for an aggregate sale price of $62.4 million.

• The Company took delivery of the M/V Partagas, a 2004-built 173,880 dwt Capesize drybulk carrier and the M/V Robusto a 2006-built 173,949 Capesize drybulk carrier, on July 30, 2009 and October 19, 2009, respectively, for a total cost of $117.25 million. Upon delivery, the vessels commenced fixed rate employment on time charters for a three year and five year minimum period at a gross daily rate of $27,500 and $26,000 per day, respectively.

• In addition, as previously announced the Company has entered into agreements to purchase a 2006- built 174,200 dwt Capesize drybulk carrier, to be renamed M/V Cohiba, for a purchase price of $61.25 million and a 2005- built 180,263 dwt Capesize drybulk carrier, to be renamed M/V Montecristo, for a purchase price of$49.5 million. We expect to take delivery of the M/V Cohiba in December 2009 following which it will commence a time charter employment for a minimum period of five years at a daily gross rate of $26,250. We expect to take delivery of the M/V Montecristo in the second quarter of 2010 following which it will commence on a time charter employment for a minimum period of four years at a gross daily rate of $23,500.

• Upon completion of the above transactions, our fleet will consist of 14 vessels, comprised of 10 dry bulk carriers (4 Capesizes, 6 Panamaxes) and 4 tankers (1 Suezmax, 3 Aframaxes) with a combined deadweight tonnage of approximately 1.6 million tons and a weighted average age of approximately 10.2 years.

Third Quarter 2009 Results

For the third quarter ended September 30, 2009, Voyage Revenues amounted to $29.5 million, Operating Loss amounted to $6.7 million which includes the effect of the loss from the sale of vessels and Net Loss amounted to $13.3 million or $(0.15) per share. EBITDA1 for the third quarter of 2009 was $17.7 million as adjusted for the effect of the loss from the sale of vessels. An average of 12.7 vessels were owned and operated during the third quarter of 2009, earning an average Time Charter Equivalent, or TCE rate, of $31,495 per day.

Financing

As of the date of this release we have raised approximately $62 million in net proceeds under the current Standby Equity Distribution Agreement with YA Global Master SPV ltd., an affiliate of Yorkville Advisors. The proceeds of this offering together with the existing loan facilities are expected to be sufficient to finance the vessel acquisitions announced to date. As of the date this release the Company has 142,600,001 shares outstanding.

Liquidity

As of September 30, 2009, the Company had total liquidity of approximately $65.5 million.

About OceanFreight Inc.

OceanFreight Inc., is an owner and operator of both drybulk and tanker vessels that operate worldwide. As of the date of this release, OceanFreight owns a fleet of 12 vessels, comprised of 8 drybulk vessels (2 Capesize, 6 Panamaxes) and 4 crude carrier tankers (1 Suezmax, 3 Aframaxes) with a combined deadweight tonnage of about 1.22 million tons.

The company has agreed to acquire two Capesize dry bulk vessels and upon the delivery of these vessels to OceanFreight its fleet will consist of 14 vessels, comprised of 10 dry bulk carriers (4 Capesizes, 6 Panamaxes) and 4 tankers (1 Suezmax, 3 Aframaxes) with a combined deadweight tonnage of approximately 1.6 million tons.

OceanFreight Inc.'s common stock is listed on the NASDAQ Global Market where it trades under the symbol "OCNF". Visit our website at www.oceanfreightinc.com.

OceanFreight Inc. press release