Frontline has purchased 5.2 percent of Overseas Shipholding Group Inc.'s (OSG) shares.

Last week, Frontline filed a Schedule 13 D with the US Securities and Exchange Commission reporting that the company and companies indirectly controlled by John Fredriksen held an aggregate of 1,628,300 shares in OSG corresponding to 5.2 percent ownership.

In addition, Frontline has entered into a forward contract for 1,366,600 shares in OSG, corresponding to an additional 4.4 percent of the total outstanding shares in OSG. If Frontline should decide to take delivery of the shares under the forward contract, the company and the group companies will control 9.6 percent ownership in OSG.

The company made the investment with its largest shareholder in order not to significantly reduce Frontline's short and medium term dividend capacity. The joint investment also reflects the fact that only approximately 41 percent of OSG's total fleet is exposed to the market for crude oil transportation, which is Frontline's core market.

Frontline and group companies view both these holdings as good financial value investments, but reserve the right to be in contact with management and other shareholders of OSG regarding alternatives that OSG could employ to enhance shareholder value.