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In connection with these contracts, Teekay has entered into agreements to purchase two of the required vessels. Teekay has exercised the purchase option on a 2000-built Aframax tanker presently trading as part of the Company’s spot-rate chartered-in fleet and acquired a Suezmax newbuilding, both of which will be converted to shuttle tankers for a total investment of approximately $170 million. The Suezmax vessel will be 50%-owned by Teekay. The third vessel that will be employed under these contracts is a 2003-built Suezmax shuttle tanker which is already operating in Teekay’s shuttle tanker fleet. It is expected that the three contracts combined will generate approximately $34 million per annum in cash flow from vessel operations. “This transaction highlights the growing demand for shuttle tankers at a time when high oil prices are supporting offshore oil exploration and production. The increase in offshore activity is highlighting the value of our shuttle tanker franchise as an economical solution for our customers around the world,” said Bjorn Moller, Teekay’s President and Chief Executive Officer. Mr. Moller continued, “Teekay’s supplier relationships with shipowners and shipyards, and extensive project management expertise allowed us to meet the relatively short lead-time required by Petrobras for modern shuttle tankers to service their growing offshore oil production.” About Teekay Shipping Teekay Shipping Corporation transports more than 10 percent of the world’s seaborne oil and has recently expanded into the liquefied natural gas shipping sector through its publicly-listed subsidiary, Teekay LNG Partners L.P. (NYSE: TGP). With a fleet of more than 140 tankers, offices in 15 countries and 5,100 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world’s leading oil and gas companies, helping them seamlessly link their upstream energy production to their downstream processing operations. Teekay’s reputation for safety, quality and innovation has earned it a position with its customers as The Marine Midstream Company. Teekay’s common stock is listed on the New York Stock Exchange where it trades under the symbol “TK”.  Source: Press Release