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In conjunction with the purchase, Arlington has entered into fixed rate charter hire agreements with Stena Bulk AB for both vessels. The charters provide for an initial period of three years, at a rate commencing at $19,765 per day for the first year, $20,043 per day for the second year, and $20,335 per day for the third year. At the end of the three-year period, both Arlington and Stena Bulk have the option to extend the charters for an additional 30 months. Arlington has also entered into vessel management agreements with Northern Marine Management Ltd. under which Northern Marine will provide technical management for both vessels for the term of the charters, at fixed rates commencing at $5,565 per day and increasing at 5% per year. Northern Marine is a wholly-owned subsidiary of Stena Group. In addition, as a result of the completion of the acquisition of the new vessels, Arlington's previously announced amendments to its existing vessel charter hire and management agreements have become effective. Arlington financed the purchase price for the vessels, plus transaction costs of approximately $2.5 million, with a drawdown under the Company's Loan Agreement with The Royal Bank of Scotland plc. As a result of this drawdown, Arlington's outstanding borrowings under the Loan Agreement are now approximately $229.5 million. The effective interest rate is approximately 5.38% per year. About Arlington Tankers Arlington Tankers Ltd. is an international seaborne transporter of crude oil and petroleum products. Arlington's fleet consists exclusively of eight modern double-hulled vessels and is one of the youngest tanker fleets in the world, with an average vessel age of approximately 2.0 years. The fleet consists of two V-MAX tankers, which are specially designed very large crude carriers, two Panamax tankers and four Product tankers. All of the Company's vessels are employed on long-term time charters. The Company was incorporated in Bermuda in September 2004. The Company completed its initial public offering on the New York Stock Exchange on November 10, 2004. Source: Press Release