Knightsbridge Tankers Limited announces cash distribution

15.10.2003

FOR IMMEDIATE RELEASE
 
KNIGHTSBRIDGE TANKERS LIMITED
 
Cash Distribution
Knightsbridge Tankers Limited (“Knightsbridge” or the “Company”) announces that its Board of Directors has declared a cash distribution in the amount of US$0.45 per common share. The cash distribution will be payable on or about November 10, 2003, to shareholders of record as of October 27, 2003. The declaration of the cash distribution follows the calculation by Knightsbridge of the payment of charterhire due from Shell International Petroleum Company Limited (“Shell International”), a member of the Royal Dutch/Shell Group of Companies, for the period from July 1, 2003 to September 30, 2003. The charterhire payable by Shell International is the greater of a guaranteed minimum rate or a spot market related rate.  The spot market related rate did not exceed the guaranteed minimum rate for the third quarter of 2003, and the charterhire paid by Shell International to Knightsbridge on October 15, 2003 is the minimum rate.
 
On June 24, 2003, the Company received notice that Shell International has chosen not to renew the bareboat charters for any of Knightsbridge’s five double hull very large crude carriers (VLCC’s) for a second seven year period.   Consequently, the existing bareboat charters to Shell will expire for all five VLCC’s, in accordance with their terms, on or about February 27, 2004, subject to the right of Shell International to extend each charter by up to 90 days. Knightsbridge has previously stated that it may retain cash in reserve should Shell International not renew all of the charters.  Knightsbridge’s Board of Directors has determined not to retain for working capital purposes a portion of the third quarter charterhire received from Shell International.  The Company may retain a portion of the charterhire to be received from Shell International in the future.
 
Knightsbridge’s Common Shares trade on the Nasdaq National Market under the symbol “VLCCF”.
 
Summary of Cash Distribution:
Amount:            US$0.45 per common share
Ex-Div Date:     October 23, 2003
Record Date:     October 27, 2003
Payment Date:  November 10, 2003
 
Special General Meeting of Shareholders
On September 26, 2003, the Company held a Special General Meeting of Shareholders. As announced on that date, following consideration of the first proposal the meeting was adjourned pending receipt of the official vote on proposal 1. Knightsbridge Tankers Limited announces that the official vote for proposal 1 is a vote in favour of continuing the Company in business. Knightsbridge Tankers Limited further announces that the Special General Meeting of Shareholders adjourned on September 26, 2003 will be reconvened at 10:00 am on October 24, 2003 at Cedar House, 41 Cedar Avenue, Hamilton, Bermuda.
 
The reconvened meeting will consider the proposal to amend the Company’s bye-laws to remove the current restrictions on the Company’s business activities. Shareholders may continue to submit proxies on the proposal to amend the bye-laws up to the time the meeting is reconvened.  The Board of Directors reiterates its recommendation in favour of the proposal and urged the shareholders who have not yet submitted proxies to do so.  The affirmative vote of holders of two-thirds of the Company’s outstanding shares is required to approve the bye-law amendments.
 
 
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
 
Matters discussed in this press release may constitute forward-looking statements.  The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business.  Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
 
Knightsbridge desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “except,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “will,” “may,” “should,” “expect” “pending and similar expressions identify forward-looking statements.
 
The forward-looking statements in this document are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties.  Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
 
In addition to these important factors, important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charterhire rates and vessel values, changes in demand in the tanker market, as a result of changes in OPEC’s petroleum production levels and world wide oil consumption and storage, changes in Knightsbridge’s operating expenses, including bunker prices, drydocking and insurance costs, the market for Knightsbridges vesssels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by Knightsbridge with the Securities and Exchange Commission.
 
Hamilton, Bermuda, October 15, 2003
 
Contact:            Knightsbridge Tankers Limited               Ola Lorentzon
                        Investor Relations                                  +47 90074285
                                                                                    Kate Blankenship
                                                                                    +1 (441) 295-0182