Stelmar Shipping Ltd. Announces Delivery of Eighth and Ninth New Vessels in Series of Eleven

Completes Current Panamax Newbuilding Program

Jul 01, 2004, 01:00 ET from Stelmar Shipping Ltd.

    ATHENS, Greece, July 1 /PRNewswire-FirstCall/ -- Stelmar Shipping Ltd.
 (NYSE:   SJH) today announced the delivery of the Reinemar, a double-hull
 Panamax tanker, and the Antigmar, a double-hull Handymax tanker.  These
 newbuildings are the eighth and ninth double-hull vessels in a series of
 eleven to be delivered by the end of July 2004.  Together, these newbuildings
 will increase Stelmar's operating days by 24% in 2004 and 8% in 2005.
     Peter Goodfellow, Chief Executive Officer and President, stated, "We are
 pleased to have completed our current Panamax newbuilding program and look
 forward to the delivery of our final two Handymax vessels on schedule.
 Stelmar's success at seamlessly integrating the new vessels into its fleet and
 significantly growing operating days has increased the Company's earnings
 potential in the current strong market.  With a fleet of modern Panamax and
 Handymax vessels, Stelmar is well positioned to take advantage of the expected
 strong demand for seaborne transportation of oil and refined product."
     The Reinemar has entered into a previously announced profitable five-year
 time charter contract, which includes a profit sharing agreement.  The
 Antigmar has entered into a profitable short-term time charter for
 repositioning purposes and is then expected to enter the spot market. The
 Company is scheduled to receive two additional Handymax tankers by the end of
 July, growing Stelmar's fleet to 41 tankers, assuming no disposals.
     Mr. Goodfellow continued, "The Reinemar is our second Panamax newbuilding
 to be signed to a profitable time charter with 50/50 profit sharing.  These
 profit sharing agreements combined with such initiatives as optimizing our
 spot/charter balance and trading a number of Panamax tankers in the spot
 market positions the Company for enhanced upside potential without sacrificing
 earnings visibility.   Having already achieved our time charter goal for 2004,
 we are focusing on expanding our 2005 time charter coverage in a strong rate
     Including the remaining new vessels to be delivered in 2004, 70% of the
 fleet's net operating days for 2004 and 30% of the fleet's net operating days
 for 2005 have been secured on time charters, equivalent to $143 million and
 $78 million in revenues, respectively.
     About Stelmar Shipping Ltd.
     Stelmar Shipping Ltd. is an international provider of petroleum product
 and crude oil transportation services.  Headquartered in Athens, Greece,
 Stelmar operates one of the world's largest and most modern Handymax and
 Panamax tanker fleets with an average age of approximately seven years,
 excluding the newbuildings.  With the delivery of two remaining vessels
 expected by July 2004, and assuming no disposals, the Company's fleet of
 39 tankers will expand to 41.  The fleet includes two leased Aframax and nine
 leased Handymax vessels.  Following the delivery of all the newbuildings, the
 average age of Stelmar's total fleet will be reduced to six years.  The
 Company, through its maintenance of a modern fleet and commitment to safety,
 has earned an excellent reputation for providing transportation services to
 major oil companies, oil traders and state-owned oil companies.
     Forward-Looking Statements
     This document contains forward-looking statements (as defined in Section
 27A of the Securities Act of 1933, as amended, and Section 21E of the
 Securities Exchange Act of 1934, as amended) concerning future events and the
 Company's operations, performance and financial conditions, including, in
 particular, statements regarding: TCE rates in the near term; time charter
 revenues, net operating days; tanker supply and demand; supply and demand for
 oil; expectations as to funding the Company's future capital requirements;
 future capital expenditures; the Company's growth strategy and measures to
 implement such strategy; environmental changes in regulation; cost savings and
 other benefits. Words such as "expects," "intends," "plans," "believes,"
 "anticipates," "estimates," and variations of such words and similar
 expressions are intended to identify forward-looking statements. Although the
 Company believes that the expectations reflected in such forward-looking
 statements are reasonable, no assurance can be given that such expectations
 will prove to have been correct.  These statements involve known and unknown
 risks and are based upon a number of assumptions and estimates which are
 inherently subject to significant uncertainties and contingencies, many of
 which are beyond the control of the Company. Actual results may differ
 materially from those expressed or implied by such forward-looking statements.
 Factors that could cause actual results to differ materially include, but are
 not limited to: changes in production of or demand for oil and petroleum
 products, either generally or in particular regions; the cyclical nature of
 the tanker industry and its dependence on oil markets; the supply of tankers
 available to meet the demand for transportation of petroleum products; greater
 than anticipated levels of tanker newbuilding orders or less than anticipated
 rates of tanker scrapping; changes in trading patterns significantly impacting
 overall tanker tonnage requirements; competitive factors in the market in
 which the Company operates; risks associated with operations outside the
 United States; and other factors listed from time to time in the Company's
 filings with the Securities and Exchange Commission. The Company expressly
 disclaims any obligations or undertaking to release publicly any updates or
 revisions to any forward-looking statements contained herein to reflect any
 change in the Company's expectations with respect thereto or any change in
 events, conditions or circumstances on which any statement is based.

SOURCE Stelmar Shipping Ltd.