Knightsbridge Tankers Limited Announces Cash Distribution

FOR IMMEDIATE RELEASE

KNIGHTSBRIDGE TANKERS LIMITED

Knightsbridge Tankers Limited (“Knightsbridge” or the “Company”) announces that its Board of Directors has declared a cash distribution in the amount of US$0.80 per common share. The cash distribution will be payable on or about February 10, 2004, to shareholders of record as of January 27, 2004. 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 October 1, 2003 to December 31, 2003. The charterhire payable by Shell International is the greater of a guaranteed minimum rate or a spot market related 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, Knightsbridge has previously stated that it may retain cash in reserve should Shell International not renew all of the charters.  For the fourth quarter of 2003, Knightsbridge’s Board of Directors has determined to retain an additional US$6.6 million for future working capital purposes, bringing the total cash retained to approximately US$12.5 million.

Knightsbridge’s Common Shares trade on the Nasdaq National Market under the symbol “VLCCF”.

Amount:            US$0.80 per common share

Ex-Div Date:     January 23, 2004

Record Date:    January  27, 2004

Payment Date:  February 10, 2004

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, January 15, 2004

Contact:           
Knightsbridge Tankers Limited              
Investor Relations                                
OlaLorentzon           Kate Blankenship
+47 90074285          +1 (441) 295-0182