For:           B+H
Ocean Carriers Ltd.





From:       Navinvest
Marine Services (USA) Inc.


The Sail Loft


19 Burnside Street


Bristol,
RI  02809








FOR IMMEDIATE
RELEASE








B+H
Ocean Carriers, Ltd. Announces Unaudited Results for Second Quarterly Period
Ended June 30, 2008 and Investment in Offshore Accommodation Unit





NEW YORK, NEW YORK,August 14, 2008. . . . B+H Ocean Carriers Ltd.
(AMEX:  BHO) today
reported unaudited net loss of $4.9 million or $(0.72) per share basic and
diluted for the three months ended June 30, 2008, compared to unaudited net
income of $4.3 million or $0.61 per share basic and diluted, for the three
months ended June 30, 2007. EBITDA for the three months ended June 30, 2008 was
$8.3 million as compared to $12.8 million for the comparable period of 2007.
Basic earnings per share calculations are based on weighted average shares
outstanding of 6,855,044 and 7,005,396 respectively, for the three months ended
June 30, 2008 and 2007. There were no dilutive securities for the quarters ended
June 30, 2008 and 2007.





The
Company reported unaudited net income of $6.1 million or $0.90 per share basic
and diluted for the six months ended June 30, 2008 as compared to unaudited net
income of $7.3 million or $1.05 per share basic and $1.03 per share diluted, for
the six months ended June 30, 2007. EBITDA for the six months ended June 30,
2008 was $29.4 million as compared to $24.1 million for the comparable period of
2007. Basic earnings per share calculations are based on weighted average shares
outstanding of 6,858,410 and 6,995,999 respectively, for the six months ended
June 30, 2008 and 2007. Diluted earnings per share calculations are based on
weighted average shares outstanding of 7,145,279 for the six months ended June
30, 2007. There were no dilutive securities at June 30, 2008.





The Company added that it had purchased
an assignment of a newbuilding contract for a 300 person, Dynamically Positioned
Accommodation Unit to be delivered fourth quarter 2009, and that the entire
project cost is presently expected to be approximately $40
million.  The construction is being financed by approximately 15% from
corporate cash and the balance with a Letter of Credit from
HSH-Nordbank.  The Company also stated that at present, there is no
permanent financing arrangement and that it expects to obtain employment closer
to the time of completion of the Unit.





The
following is a discussion of our financial condition and results of operations
for the six month and quarterly periods ended June 30, 2008 and
2007.





Quarter
      Ended June 30, 2008 (unaudited) versus June 30, 2007
      (unaudited)





Revenues





Revenues
from voyage and time charters decreased $1.1 million or 4% from the three month
period ending June 30, 2007. The decrease in revenue is due to a decrease in
on-hire days, a decrease in the TCE rates and a decrease in voyage days. There
were 1,079 on-hire days of which 463 were voyage days in the quarter ended June
30, 2007 as compared with 1,021 on-hire days of which 315 were voyage days, in
the quarter ended June 30, 2008. Revenue from voyage charters is higher due to
the fact that it is recorded at the gross amount, before voyage expenses, which
are the owner’s responsibility under a voyage charter. Average TCE rates
decreased $1,363 from the second quarter of 2007 to the second quarter of
2008.





Voyage
expenses





Voyage expenses for the quarter ended
June 30, 2008 increased $1.5 million or 27% from the quarter ended June 30,
2007. The increase is due to a 110% increase in bunker expense per voyage day.
Voyage expenses include port, canal and fuel charges for which the shipowner is
responsible on a voyage charter but not when a vessel is on either a time or
bareboat charter.





Vessel
operating expenses





Vessel operating expenses increased
$1.8 million from the three month period ended June 30, 2007 to the same period
of 2008. Operating expenses on a per day basis increased 31% from the first half
of 2007 to the first half of 2008. The increase is predominantly due to
increases in stores expense, repairs and maintenance expense and upgrading
expenses.





Vessel
depreciation and amortization of deferred charges





Vessel depreciation and amortization of
deferred charges increased $0.2 million and $1.0 million, respectively for the
quarter ended June 30, 2008 over the same 2007 period. The increase in
depreciation is due to the conversion of one vessel to a bulk carrier and the
purchase of one vessel in June 2007 which was offset by the sale of two vessels
in the first quarter of 2008. The increase in amortization of deferred charges
is due to the conversion of two additional vessels to double hulled tankers in
2007.





Consulting
and professional fees and other expenses





Consulting and professional fees and
other expenses in the three months ended June 30, 2008 decreased $0.2 million
from the same 2007 period. The decrease is due to a decrease in legal
fees.





Equity
in income of Nordan OBO II Inc.





Equity in income of Nordan OBO II Inc.
of $0.1 million represents income from the Company’s 50% interest in an entity
which is the disponent owner of a 1992-built 75,000 DWT combination carrier
through a bareboat charter party.  Income from the investment
increased $0.2 million from the six months ended June 30, 2007 to the six months
ended June 30, 2008 due to the fact that the vessel was offhire for
approximately 19 days in the second quarter of 2007 as a result of main engine
damage which was subject to an insurance claim that was settled in the first
quarter of 2008.





Interest
expense and interest income





The $0.2 million (7%) decrease in
interest expense for the quarter ended June 30, 2008, as compared to the same
period of 2007, is due to a decrease in interest rates. The average daily
interest rate for the three months ended June 30, 2007 was 5.32% versus an
average daily rate of 2.59% for the same period of 2008. The effect of this
decrease was offset by the fact that the average balance of long-term debt was
$190.3 million for the three months ended June 30, 2007 and $218.4 million for
the three months ended June 30, 2008. The decrease in interest income of $0.5
million from 2007 to 2008 is also due to the decrease in interest
rates.








Loss
on fair value of put option contracts





In 2006 and 2007, the Company bought
put options to mitigate the risk associated with the possibility of falling time
charter rates. These put options do not qualify for special hedge accounting
under US GAAP and as such, the aggregate changes in the fair value of these
option contracts is reflected in the Company’s statement of operations. The
unrealized loss on the value of the contracts totaled $4.3 million and $0.6
million for the three months ended June 30, 2008 and 2007,
respectively.





Loss
on fair value of interest rate swaps





The Company entered into two interest
rate swaps during 2005 which were required to be marked to market through the
Consolidated Statements of Operations. The combined increase in the value of
these swaps from April 1, 2008 to June 30, 2008 was $0.6 million. The value of
the swaps increased by $0.4 million in the second quarter of 2007. The notional
amount and the expiration date of one of the swaps were renegotiated in April
2008, resulting in its designation as a cash flow hedge. Accordingly, changes in
the fair value of that swap were made through other comprehensive income during
May and June of 2008.





Loss
on fair value of foreign currency exchange contracts





The Company entered into foreign
currency exchange contracts in late 2007 and 2008 which are designed to mitigate
the risk associated with changes in foreign currency exchange rates. The changes
in the fair value of these contracts is recorded in operations. The decrease in
the value of the contracts, net of settlement proceeds was $0.2 million in the
three months ended June 30, 2008.





Six
      Months ended June 30, 2008 (unaudited) versus June 30, 2007
      (unaudited)





Revenues





Revenues
decreased $2.8 million (5%) in the six months ended June 30, 2008 over the
comparable period in 2007. Time-charter equivalent (“TCE”) revenue decreased
$5.2 million or 12% for the six months ended June 30, 2008 over the six months
ended June 30, 2007. TCE revenue represents gross revenue less voyage related
expenses (principally fuel and port costs). This measure is used to create
comparability between time-charter and voyage revenues. The decrease in revenue
is due to a decrease in the number of on-hire days, a decrease in the number of
voyage days and a decrease in the TCE rates. Revenue from voyage charters is
higher due to the fact that it is recorded at the gross amount, before voyage
expenses, which are the owner’s responsibility under a voyage charter. There
were 2,056 on-hire days of which 623 were voyage days, in the six months ended
June 30, 2008 as compared with 2,230 on-hire days of which 892 were voyage days,
in the six months ended June 30, 2007. The time charter equivalent rate
decreased $895 (5%) per day.





The
Company, through wholly-owned subsidiaries, acquired one medium range (“MR”)
product tanker in June 2007 and sold one combination carrier and one MR tanker
in the first quarter of 2008. The Company had offhire due to conversions to bulk
carriers of 304 days in the six months ended June 30, 2008 and offhire related
to conversions to fully compliant double-hulled vessels of 240 days in the six
months ended June 30, 2007. The Company estimates that lost TCE revenue due to
offhire for conversions is approximately $7.8 million for the six months ended
June 30, 2008 and $4.6 million for the six months ended June 30,
2007.





Other
revenue of $0.7 million and $0.5 million for the six months ended June 30, 2008
and 2007, respectively, includes $0.4 and $0.5 million earned in respect of a
profit sharing arrangement on one vessel for the six months ended June 30, 2008
and 2007, respectively.





Voyage
expenses





Voyage expenses increased by $2.4
million (20%) in the six month period ended June 30, 2008 as compared with the
same period of 2007. This increase is due to an 88% increase in bunker expenses
per voyage day and to an increase in port costs. Voyage expenses include port,
canal and fuel charges for which the shipowner is responsible on a voyage
charter but not when a vessel is on either a time or bareboat
charter.





Vessel
operating expenses





Vessel operating expenses increased
$1.8 million from the six month period ended June 30, 2007 to the same period of
2008. Operating expenses on a per day basis increased 14% from the first half of
2007 to the first half of 2008. The increase is due to increases in crew travel
and wage expenses, stores, repairs and maintenance, upgrading and bunkers
consumed during off-hire periods.





Amortization
of deferred charges





Amortization of deferred charges
increased $1.8 million for the six month period ended June 30, 2008 as compared
to the comparable period of 2007. This increase is due to the cost of converting
the Company’s vessels to fully compliant double-hulled vessels and bulk
carriers. At June 30, 2008, the conversions of five vessels had been completed.
The conversion of the sixth vessel to a bulk carrier was expected to be
completed in August 2008 and the conversion of a seventh is expected to begin in
August 2008.





Equity
in income of Nordan OBO II Inc.





Equity in income of Nordan OBO II Inc.
of $0.6 million represents income from the Company’s 50% interest in an entity
which is the disponent owner of a 1992-built 75,000 DWT combination carrier
through a bareboat charter party.  Income from the investment
increased $0.3 million from $0.3 million for the six months ended June 30, 2007
due to the fact that the vessel was offhire for approximately 19 days in the
second quarter of 2007 as a result of main engine damage which was subject to an
insurance claim that was settled in the first quarter of 2008.





Interest
expense and interest income





The $0.6 million (9%) increase in
interest expense for the six months ended June 30, 2008, as compared to the same
period in 2007, is due to the increase in long term debt. Outstanding debt
increased from $186.3 million at June 30, 2007 to $225.3 million at December 31,
2007. Outstanding debt at June 30, 2008 was $221.1 million. The decrease in
interest income of $1.1 million is due to the decrease in interest rates. The
average daily interest rate for the six months ended June 30, 2008 was 2.94%
versus an average daily rate of 5.29% for the six month period ended June 30,
2007.





Loss
on fair value of interest rate swaps





The Company entered into two interest
rate swaps during 2005 which are required to be marked to market through the
Consolidated Statements of Operations. The decrease in the value of these swaps
from January 1, 2008 to June 30, 2008 was $0.5 million. The value of the swaps
increased by $0.2 million in the first six months of 2007. The notional amount
and the expiration date of one of the swaps were renegotiated in April 2008,
resulting in its designation as a cash flow hedge. Accordingly, changes in the
fair value of that swap were made through other comprehensive income during May
and June of 2008.





Loss
on fair value of put option contracts





In 2006 and 2007, the Company bought
put options to mitigate the risk associated with the possibility of falling time
charter rates. These put options do not qualify for special hedge accounting
under US GAAP and as such, the aggregate changes in the fair value of these
option contracts is reflected in the Company’s Consolidated Statements of
Operations. The unrealized loss on the value of the contracts totaled $4.7
million for the six months ended June 30, 2008 and $1.2 million for the six
months ended June 30, 2007. The loss of value is due to the fact that the index
rate on which the puts are based has increased.





Loss
on fair value of foreign currency exchange contracts





The Company entered into foreign
currency exchange contracts in late 2007 and 2008 which are designed to mitigate
the risk associated with changes in foreign currency exchange rates. The changes
in the fair value of these contracts is recorded in operations. The decrease in
the value of the contracts, net of settlement proceeds was $0.1 million in the
six months ended June 30, 2008.





Loss
on trading in marketable securities





The loss on trading in marketable
securities is predominantly due to the fact that the Company liquidated its
position in one non-performing account.





Gain
on sale of vessel





The Company, through wholly owned
subsidiaries, sold one MR product tanker and one combination carrier in the
first quarter of 2008. The excess of the selling price over the book value of
these vessels was $13.3 million.








Liquidity
and Capital Resources





Cash at
June 30, 2008, amounted to $73.1 million, an increase of $11.4 million as
compared to December 31, 2007. The increase in the cash balance is
attributable to inflows from investing activities of $28.5 million, primarily
related to the sale of two vessels in the first quarter which was offset by the
investment in vessel conversions of $10.4 million. Outflows for operating
activities were $12.0 million due to the decrease in accounts payable,
predominantly related to vessel conversions. The outlows for financing
activities of $5.0 million is made up of mortgage proceeds of $30.0 million less
payments of long-term debt totaling $34.2 million and payments for debt issuance
costs of $0.7 million.





The
Company intends to continue its vessel acquisition program to expand its
presence in its two current sectors, combination carriers capable of
transporting both wet and dry bulk cargoes, and chemical/product carriers;
however, there can be no assurance that the Company will be able to purchase any
of such vessels on favorable terms or at all.





The
Company’s fleet currently consists of five medium range chemical/product
tankers, five combination carriers (OBOs) and a 50% interest in another OBO, one
bulk carrier and one panamax product tanker. The sixth medium range product
tanker is currently being converted to a bulk carrier, with delivery expected in
August 2008. Eight of the vessels are employed under fixed contract employment
and the remainder are operating in the spot market.





We
provide EBITDA (earnings before interest expense, taxes, depreciation and
amortization) information as a guide to the operating performance of the
Company.   EBITDA is presented to provide investors with
meaningful additional information that management uses to monitor ongoing
operating results and evaluate trends over comparative periods.  EBITDA
should not be considered a substitute for net income or cash flow from operating
activities prepared in accordance with accounting principles generally accepted
in the United States or as a measure of profitability or liquidity.  While
EBITDA is frequently used as a measure of operating results and performance, it
is not necessarily comparable to other similarly titled captions of other
companies due to differences in methods of calculation.





EBITDA,
which is not a term recognized under generally accepted accounting principles,
is calculated as net income plus interest expense, income taxes (benefit),
depreciation and amortization, and an adjustment for book value gains and losses
on the sale of vessels. Included in the depreciation and amortization for the
purpose of calculating EBITDA is depreciation of vessels, including capital
improvements and amortization of mortgage fees. EBITDA, as calculated by the
Company, may not be comparable to calculations of similarly titled items
reported by other companies.





Safe
Harbor Statement





Certain
statements contained in this press release, including, without limitation,
statements containing the words “believes,” “anticipates,” “expects,” “intends,”
and words of similar import, constitute “forward-looking statements” as defined
in the Private Securities Litigation Reform Act of 1995 or by the Securities and
Exchange Commission in its rules, regulations and releases, regarding the
Company’s financial and business prospects. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors that may cause
the actual results, performance or achievements of the Company, or industry
results, to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. Such
factors include, but are not limited to, those set forth in the Company’s Annual
Report and filings with the Securities and Exchange Committee. Given these
uncertainties, undue reliance should not be placed on such forward-looking
statements. The Company disclaims any obligation to update any such factors or
to publicly announce the result of any revisions to any of the forward-looking
statements contained or incorporation by reference herein to reflect future
events or developments.










# #
#








For
further information, including the Company’s 2007 Annual Report on Form 20F and
other recent Form 6Ks and press releases, access the Company’s
website:   www.bhocean.com





Company
Contact:           John
LeFrere


917.225.2800








Financial
Statements




B+H
      Ocean Carriers Ltd.Unaudited
      Consolidated Balance SheetsUnaudited
              
              
              Audited
              
              
              UnauditedASSETS
              
              June
      30, 2008
              
              
              December
      31, 2007
              
              
              June
      30, 2007CURRENT
      ASSETS:Cash
      and cash equivalents
              
              $
              73,100,019
              
              
              $
              61,672,953
              
              
              $
              38,031,491Marketable
      securities
              
              
              109,880
              
              
              
              982,300
              
              
              
              1,106,637Trade
      accounts receivable, less allowance for doubtful accounts of $336,392 at
      June 30, 2008 and December 31, 2007 and $119,738 at June 30,
      2007
              
              
              4,170,917
              
              
              
              4,748,262
              
              
              
              5,921,354Vessel
      Held for Sale
              
              
              -
              
              
              
              24,984,092
              
              
              
              -Inventories
              
              
              2,889,289
              
              
              
              3,406,856
              
              
              
              3,536,679Prepaid
      expenses and other current assets
              
              
              1,155,284
              
              
              
              1,682,264
              
              
              
              1,716,935Total
      current assets
              
              
              81,425,389
              
              
              
              97,476,727
              
              
              
              50,313,096Vessels,
      at cost:Vessels
              
              
              357,299,916
              
              
              
              344,351,597
              
              
              
              341,584,529Less
      - Accumulated depreciation
              
              
              (73,455,618
              )
              
              
              (61,888,379
              )
              
              
              (61,325,987
              )283,844,298
              
              
              
              282,463,218
              
              
              
              280,258,542Investment
      in Nordan OBO II Ltd
              
              
              9,879,590
              
              
              
              9,991,686
              
              
              
              10,174,172Investment
      in debt securities
              
              
              5,000,000
              
              
              
              5,000,000
              
              
              
              5,000,000Other
      assets
              
              
              3,814,532
              
              
              
              3,576,221
              
              
              
              3,024,765Fair
      value of Freight Forward Contracts
              
              
              2,630,103
              
              
              
              7,292,718
              
              
              
              894,588Fair
      value of derivative asset
              
              
              40,700
              
              
              
              32,904
              
              
              
              773,054Total
      assets
              
              $
              386,634,612
              
              
              $
              405,833,474
              
              
              $
              350,438,217LIABILITIES
      AND SHAREHOLDERS' EQUITYCURRENT
      LIABILITIES:Accounts
      payable
              
              $
              11,202,955
              
              
              $
              35,178,817
              
              
              $
              10,425,628Accrued
      liabilities
              
              
              6,229,194
              
              
              
              3,111,242
              
              
              
              5,416,306Accrued
      interest
              
              
              1,093,520
              
              
              
              1,232,131
              
              
              
              919,057Current
      portion of mortgage payable
              
              
              46,755,555
              
              
              
              37,632,601
              
              
              
              29,475,000Deferred
      income
              
              
              5,850,691
              
              
              
              6,578,016
              
              
              
              6,534,334Other
      liabilities
              
              
              184,342
              
              
              
              234,300
              
              
              
              202,186Total
      current liabilities
              
              
              71,316,257
              
              
              
              83,967,107
              
              
              
              52,972,511Fair
      value of derivative liability
              
              
              2,192,156
              
              
              
              1,760,148Bonds
      Payable
              
              
              25,000,000
              
              
              
              25,000,000
              
              
              
              25,000,000Long
      term debt
              
              
              149,391,697
              
              
              
              162,669,596
              
              
              
              131,824,538SHAREHOLDERS'
      EQUITY:Preferred
      stock, $0.01 par value; 20,000,000 shares authorized;no
      shares issued and outstanding
              
              
              -
              
              
              
              -
              
              
              
              -Common
      stock, $0.01 par value; 30,000,000 shares authorized;7,557,268
      shares issued; 6,852,544, 6,866,615 and 6,991,661shares
      outstanding as of June 30, 2008, December 31, 2007
              
              
              75,572
              
              
              
              75,572
              
              
              
              75,572and
      June 30, 2007, respectivelyPaid-in
      capital
              
              
              93,863,095
              
              
              
              93,863,095
              
              
              
              92,936,201Retained
      earnings
              
              
              56,845,035
              
              
              
              50,699,428
              
              
              
              56,023,900Other
      Comprehensive income
              
              
              (532,906
              )
              
              
              (824,785
              )
              
              
              258,594Treasury
      stock
              
              
              (11,516,294
              )
              
              
              (11,376,687
              )
              
              
              (8,653,099
              )Total
      shareholders' equity
              
              
              138,734,502
              
              
              
              132,436,623
              
              
              
              140,641,168Total
      liabilities and shareholders' equity
              
              $
              386,634,612
              
              
              $
              405,833,474
              
              
              $
              350,438,217






B+H
      Ocean Carriers Ltd.Unaudited
      Consolidated Statements of OperationsFor
      the six
              
              
              For
      the six
              
              
              For
      the three
              
              
              For
      the threemonths
      ended
              
              
              months
      ended
              
              
              months
      ended
              
              
              months
      endedJune
      30, 2008
              
              
              June
      30, 2007
              
              
              June
      30, 2008
              
              
              June
      30, 2007Revenues:Voyage,
      time and bareboat charter revenues
              
              $
              52,274,976
              
              
              $
              55,075,050
              
              
              $
              26,684,185
              
              
              $
              27,753,375Other
      revenue
              
              
              652,576
              
              
              
              544,349
              
              
              
              150,554
              
              
              
              44,887Total
      revenues
              
              
              52,927,552
              
              
              
              55,619,399
              
              
              
              26,834,739
              
              
              
              27,798,262Operating
      expenses:Voyage
      expenses
              
              
              14,263,745
              
              
              
              11,851,226
              
              
              
              7,043,223
              
              
              
              5,529,511Vessel
      operating expenses, drydocking and survey costs
              
              
              20,303,660
              
              
              
              18,494,341
              
              
              
              10,574,027
              
              
              
              8,725,686Vessel
      depreciation
              
              
              7,898,263
              
              
              
              7,855,342
              
              
              
              4,120,448
              
              
              
              3,953,108Amortization
      of deferred charges
              
              
              4,156,972
              
              
              
              2,383,249
              
              
              
              2,233,856
              
              
              
              1,281,115General
      and administrative:Management
      fees to related party
              
              
              600,127
              
              
              
              560,876
              
              
              
              296,692
              
              
              
              280,438Consulting
      and professional fees, and other expenses
              
              
              2,445,960
              
              
              
              2,499,911
              
              
              
              1,123,531
              
              
              
              1,281,426Total
      operating expenses
              
              
              49,668,727
              
              
              
              43,644,945
              
              
              
              25,391,777
              
              
              
              21,051,284Income
      from vessel operations
              
              
              3,258,825
              
              
              
              11,974,454
              
              
              
              1,442,962
              
              
              
              6,746,978Other
      income (expense):Equity
      in income of Nordan OBO II
              
              
              637,903
              
              
              
              347,774
              
              
              
              101,203
              
              
              
              (48,984
              )Interest
      expense
              
              
              (6,424,375
              )
              
              
              (5,869,421
              )
              
              
              (2,874,230
              )
              
              
              (3,097,430
              )Interest
      income
              
              
              818,420
              
              
              
              1,891,434
              
              
              
              328,123
              
              
              
              851,633(Loss)
      gain on trading securities
              
              
              (281,946
              )
              
              
              
              
              
              
              (84,670
              )
              
              
              18,815Loss
      on value of put option contracts
              
              
              (4,662,615
              )
              
              
              (1,196,800
              )
              
              
              (4,343,094
              )
              
              
              (632,397
              )(Loss)
      gain on value of interest rate swaps
              
              
              (542,595
              )
              
              
              196,207
              
              
              
              599,648
              
              
              
              434,480Loss
      on foreign currency exchange contracts
              
              
              (173,496
              )
              
              
              -
              
              
              
              (475,077
              )
              
              
              -Settlement
      on foreign currency exchange contracts
              
              
              252,897
              
              
              
              -
              
              
              
              252,897Gain
      on sale of vessels
              
              
              13,262,590
              
              
              
              -
              
              
              
              135,182Total
      other income (expense), net
              
              
              2,886,783
              
              
              
              (4,630,806
              )
              
              
              (6,360,018
              )
              
              
              (2,473,883
              )Net
      income (loss)
              
              $
              6,145,608
              
              
              $
              7,343,648
              
              
              $
              (4,917,056
              )
              
              $
              4,273,095Basic
      earnings per common share
              
              $
              0.90
              
              
              $
              1.05
              
              
              $
              (0.72
              )
              
              $
              0.61Diluted
      earnings per common share
              
              $
              0.90
              
              
              $
              1.03
              
              
              $
              (0.72
              )
              
              $
              0.61Weighted
      average number of common shares outstanding:Basic
              
              
              6,858,410
              
              
              
              6,995,999
              
              
              
              6,855,044
              
              
              
              7,005,396Diluted
              
              
              6,858,410
              
              
              
              7,145,279
              
              
              
              6,855,044
              
              
              
              7,005,396
    B+H
      Ocean Carriers Ltd.Unaudited
      Consolidated Statements of Cash FlowsFor
      the six
                
                
                For
      the sixmonths
      ended
                
                
                months
      endedJune
      30, 2008
                
                
                June
      30, 2007CASH
      FLOWS FROM OPERATING ACTIVITIES:Net
      income
                
                $
                6,145,608
                
                
                $
                7,343,648Adjustments
      to reconcile net income to net cash provided by operating
      activities:Vessel
      depreciation
                
                
                7,898,263
                
                
                
                7,855,342Amortization
      of deferred charges
                
                
                4,156,972
                
                
                
                2,383,303Loss
      on value of interest rate swaps
                
                
                542,595
                
                
                
                1,013,728Loss
      on value of put contracts
                
                
                4,662,615
                
                
                
                -Gain
      on sale of vessels
                
                
                (13,262,590
                )
                
                
                -Loss
      on foreign currency exchange contracts
                
                
                173,496
                
                
                
                -Other
      losses, net
                
                
                190,948
                
                
                
                (13,135
                )Compensation
      expense recognized under employee stock plans
                
                
                -
                
                
                
                16,892Changes
      in assets and liabilities:Decrease
      (increase) in trade accounts receivable
                
                
                577,345
                
                
                
                (3,388,644
                )Decrease
      (increase)  in inventories
                
                
                517,567
                
                
                
                (988,903
                )Decrease
      (increase) in prepaid expenses and other assets
                
                
                526,980
                
                
                
                (307,936
                )Decrease
      in accounts payable
                
                
                (23,975,862
                )
                
                
                (1,033,297
                )Increase
      in accrued liabilities
                
                
                3,117,952
                
                
                
                1,538,727Decrease
      in accrued interest
                
                
                (138,611
                )
                
                
                (171,420
                )Decrease
      in deferred income
                
                
                (727,325
                )
                
                
                (811,856
                )(Decrease)
      increase in other liabilities
                
                
                (49,958
                )
                
                
                51,475Payments
      for special surveys
                
                
                (2,399,519
                )
                
                
                (2,878,988
                )Total
      adjustments
                
                
                (18,189,132
                )
                
                
                3,265,288Net
      cash (used in) provided by operating activities
                
                
                (12,043,524
                )
                
                
                10,608,936CASH
      FLOWS FROM INVESTING ACTIVITIES:Proceeds
      from sale of vessel
                
                
                38,116,601
                
                
                
                -Purchase
      and investment in vessels
                
                
                -
                
                
                
                (19,600,000
                )Investment
      in vessel conversions
                
                
                (10,418,719
                )
                
                
                (6,105,948
                )Investment
      in Nordan OBO II Inc
                
                
                (637,904
                )
                
                
                (347,774
                )Dividends
      from Nordan OBO II Inc
                
                
                750,000
                
                
                
                750,000Investment
      in put options contracts
                
                
                -
                
                
                
                (1,431,780
                )Sale
      (purchase) of marketable securities
                
                
                681,471
                
                
                
                (103,400
                )Other
      investments
                
                
                (17,411
                )
                
                
                -Net
      cash provided by (used in) investing activities
                
                
                28,474,038
                
                
                
                (26,838,902
                )CASH
      FLOWS FROM FINANCING ACTIVITIES:Payments
      for debt issuance costs
                
                
                (708,896
                )
                
                
                (616,630
                )Mortgage
      proceeds
                
                
                30,000,000
                
                
                
                27,000,000Purchase
      of treasury stock
                
                
                (139,607
                )
                
                
                (3,094,737
                )Issuance
      of treasury shares
                
                
                -
                
                
                
                200,690Long-term
      debt repayment
                
                
                -
                
                
                
                (31,402,960
                )Payments
      of mortgage principal
                
                
                (34,154,945
                )
                
                
                (16,215,934
                )Net
      cash used in financing activities
                
                
                (5,003,448
                )
                
                
                (24,129,571
                )Net
      increase (decrease ) in cash and cash equivalents
                
                
                11,427,066
                
                
                
                (40,359,537
                )Cash
      and cash equivalents, beginning of period
                
                
                61,672,953
                
                
                
                78,391,028Cash
      and cash equivalents, end of period
                
                $
                73,100,019
                
                
                $
                38,031,491