Omega Navigation Enterprises, Inc. Announces Formation of Joint Venture to Acquire of Newbuilding Vessel Omega Duke,

PIRAEUS, GREECE, May 19 (MARKET WIRE) --
Omega Navigation Enterprises, Inc. (NASDAQ: ONAV) (SGX: ONAV50), a
provider of global marine transportation services focusing on product
tankers, announced today it has taken delivery of the first of its
newbuildings, the 47,000 dwt. Omega Duke. It further announced that it
has taken several measures to better position itself to fund its
newbuilding commitments from internally generated cash flow. As previously
announced, Omega has commitments from commercial banks to provide 75%
financing at delivery of all of its remaining newbuildings based on
contract prices or fair market values at the time of delivery.

Formation of Joint Venture

In May 2008, Omega announced it had entered in to an agreement with an
unrelated third party to purchase two newbuilding 47,000 dwt. coated
product / chemical tankers under construction at Hyundai Mipo Dockyard in
South Korea. Omega is pleased to announce that the Company and Glencore
International AG (through wholly owned subsidiaries) have agreed to enter
into an equal partnership joint venture for the purchase of the first of
the above vessels. Consequently, the Omega Duke was recently purchased by
a Company belonging to the joint venture at a price based on current
market valuation. The Omega Duke has been purchased by a combination of
previously secured bank financing and equity injected by both partners
and will not be consolidated in Omega's financial statements. The owning
company has time chartered the vessel to ST Shipping (Glencore
International, AG) at current market rates for a period of five years
together with an excess profit arrangement. The base time charter rate
fully covers operating expenses and debt service.

Time Charter Agreement for Omega Queen

The Company has also announced that they have entered into a time charter
agreement with ST Shipping & Transport Pte Ltd. on the Omega Queen with
profit share, on an evergreen basis subject to termination notice of two
months. The base rate fully covers operating expenses and debt service.

Temporary Suspension of Dividends

Omega's Board of Directors decided to temporarily suspend the Company's
dividends. This action will enhance the Company's liquidity and overall
financial flexibility enabling it to continue with its growth plans even
in these most uncertain times funding its newbuilding program through
internally generated funds and bank debt. Omega has commitments from
commercial banks to provide 75% financing at delivery of all of its seven
newbuildings based on contract prices or fair market values at the time of
delivery.

The decision to suspend dividends was taken independently of any loan
covenant requirements as the company was in full compliance with all
covenants at the end of the most recent quarter. The Board of Directors
will continue to monitor the shipping and capital markets and future
capital expenditures of the Company and determine when dividends may be
reinstated and the level of those dividends.

Omega President and CEO George Kassiotis commented, "We are disappointed
that the unparalleled economic conditions in which we live, have forced
the current suspension of our dividend. Through the first quarter of 2009
we have returned over $80 million in the form of dividends to our
shareholders. The proactive initiatives we have undertaken, including the
suspension of dividends and the formation of the joint venture, will
enable us to fund our growth plans through internally generated cash flow
and the debt we already have commitments for. Omega has always taken the
position that while we believe in generating value for shareholders
through the payment of dividends, we should not do this at the expense of
growing the Company. We seek to optimize the management of our capital
exposure, deliver our balance sheet and create synergies which will
enhance our ability to preserve our position in the product tanker
industry, fund our growth plans and take advantage of opportunities
during challenging times. We are also very pleased to enjoy such a strong
business relationship with Glencore, one of the largest commodities
traders in the world. The joint ownership of the Omega Duke is further
evidence of the high standards of operating performance that our Company
offers to its customers and end users of its vessels and also
demonstrates our ability to create synergies in a challenging environment.
We want to thank our lenders for the continuing support to our Company and
its growth initiatives especially in these current market environment."

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.

The Company 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," "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 press release are based upon
various assumptions, many of which are based, in turn, upon further
assumptions, including without limitation, the Company's management's
examination of historical operating trends, data contained in the
Company's records and other data available from third parties. Although
the Company believes 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 the Company's control, the Company cannot assure
you that the Company will achieve or accomplish these expectations,
beliefs or projections.

In addition to these important factors other important factors that, in
the Company's 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 charter rates and vessel values, changes in demand for
product tanker and dry bulk shipping capacity, changes in the Company's
operating expenses, including bunker prices, drydocking and insurance
costs, the market for the Company's vessels, 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, vessels breakdowns and instances of off-hires and other
factors. Please see the Company's filings with the Securities and Exchange
Commission for a more complete discussion of these and other risks and
uncertainties.

Contacts:

Company Contact:
Gregory A. McGrath
Chief Financial Officer
Omega Navigation Enterprises, Inc.
PO Box 272
Convent Station, NJ 07961
Tel. (551) 580-0532
E-mail: gmcgrath@omeganavigation.com
www.omeganavigation.com

Investor Relations / Financial Media:
Nicolas Bornozis
President
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, NY 10169
Tel. (212) 661-7566
E-mail: omeganavigation@capitallink.com
www.capitallink.com

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