Acquisition Of Chemical Tanker, Sinar Busan

The Board of Directors of Samudera Shipping Line Ltd (the "Company") wishes to announce that its wholly-owned subsidiary, Foremost Maritime Pte Ltd, has acquired a new build chemical tanker, Sinar Busan, with capacity of 11,420 dwt.

Sinar Busan, built by STX Shipyard in Korea, was delivered to the Group on 20 July 2006 and will be on a three-year time-charter contract, transporting various chemical products within the China-India region. The vessel has started its maiden voyage on 24 July 2006, under time charter, loading 10,000 MT caustic soda from Jinzhou, China to West Coast India.

The new vessel, which is financed through internal resources and bank borrowings, is expected to generate additional revenue to the Group in third quarter this year.

The acquisition is in line with the Company's goal to position itself as a reliable logistics partner to provide high quality transportation and logistics services to excellent customers in Asia region by providing modern and young tonnage of size optimum to customers' needs.

The Group will continue to actively pursue business opportunities in the areas of chemical tankers, cement carriers as well coal carriers.

None of the directors or controlling shareholders of the Company has any interest, direct or indirect, in the above transaction.


By order of the Board

Dhrubajyoti Das, , Executive Director
25 July 2006