INVESTOR
CONTACT:


John
LeFrere


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225 2800


investorrelations@bhcousa.com














B+H
Ocean Carriers Ltd.  Announces Intent to Repurchase up to 600,000
Shares of Its Common Stock through
a Modified “Dutch Auction” Tender Offer




New York,
New York, October 20, 2008 – B+H Ocean Carriers Ltd.  (AMEX: BHO)
today announced that it will commence a modified “Dutch Auction” tender offer to
purchase up to 600,000 shares of its common stock at a price per share not less
than $4.00 and not greater than $5.00.  The tender offer is expected
to begin on October 20, 2008, and to expire on November 17, 2008, at 12:00
midnight, New York City time, unless extended.  BHO will purchase up
to 600,000 common shares in the offer (representing approximately 8.8% of BHO’s
outstanding common shares.  Tenders of shares must be made prior to
the expiration of the tender offer and may be withdrawn at any time prior to
that time.




On the
terms and subject to the conditions of the tender offer, BHO’s stockholders will
have the opportunity to tender some or all of their shares at a price within the
$4.00 to $5.00 per share range.  Based on the number of shares
tendered and the prices specified by the tendering stockholders, BHO will
determine the lowest per share price within the range that will enable it to buy
600,000 shares, or such lesser number of shares that are tendered and not
withdrawn.  All shares accepted in the tender offer will be purchased
at the same price per share even if the stockholder tendered at a lower
price.  If stockholders tender more than 600,000 shares at or below
the purchase price per share, BHO will purchase the shares tendered at or below
the determined per share purchase price by those stockholders, subject to a
preference for “odd lots” tendered, proration and certain other
factors.  BHO may continue after the tender offer its previously
announced plan for the purchase of common shares on the open market from time to
time, depending on market conditions.




The
tender offer is not contingent upon any minimum number of shares being
tendered.  The tender offer is, however, subject to a number of other
terms and conditions.




BHO’s
board of directors has approved the tender offer because it believes that the
modified “Dutch Auction” tender offer is a prudent use of BHO’s financial
resources given its current liquidity and prospective capital
requirements.  Subject to certain limitations and legal requirements,
BHO reserves the right to accept for payment, according to the terms and
conditions of the offer, up to an additional 2% of BHO’s outstanding shares of
common stock (or 136,260 shares) without amending or extending the offer. In
exercising this right, we may increase the per share purchase price to allow us
to purchase all such additional shares.




BHO
believes that the modified “Dutch Auction” tender offer provides a mechanism to
provide stockholders with the opportunity to tender all or a portion of their
shares and thereby receive a return of some or all of their investment if they
so elect.  In addition, stockholders who do not participate in the
offer will automatically increase their relative percentage ownership interest
in BHO and its future operations at no additional cost to them.




None of
BHO, its board of directors, the depositary or the information agent is making
any recommendations to stockholders as to whether to tender or refrain from
tendering their shares into the tender offer.  Stockholders must
decide how many shares they will tender, if any, and the price within the stated
range at which they will offer their shares for purchase by BHO. The Company has
been advised that none of its directors or executive officers intends to tender
shares pursuant to the offer.




D.F. King
& Co., Inc. is the information agent for the Offer.  The Offer to
Purchase, a letter of transmittal and related documents will be mailed shortly
to stockholders of record and also will be made available for distribution to
beneficial owners of BHO’s common stock.  For questions and
information, please call the information agent at (800) 549-6746.




THIS
PRESS RELEASE IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE AN
OFFER TO BUY OR THE SOLICITATION OF AN OFFER TO SELL SHARES OF THE B+H OCEAN
CARRIERS LTD. COMMON STOCK.  THE TENDER OFFER IS BEING MADE ONLY
PURSUANT TO THE OFFER TO PURCHASE, LETTER OF TRANSMITTAL AND RELATED MATERIALS
THAT BHO WILL SHORTLY BE DISTRIBUTING TO ITS STOCKHOLDERS AND FILING WITH THE
SECURITIES AND EXCHANGE COMMISSION.  STOCKHOLDERS AND INVESTORS SHOULD
READ CAREFULLY THE OFFER TO PURCHASE, LETTER OF TRANSMITTAL AND RELATED
MATERIALS BECAUSE THEY CONTAIN IMPORTANT INFORMATION, INCLUDING THE VARIOUS
TERMS OF, AND CONDITIONS TO, THE TENDER OFFER.  STOCKHOLDERS AND
INVESTORS MAY OBTAIN A FREE COPY OF THE TENDER OFFER STATEMENT ON “SCHEDULE TO,”
THE OFFER TO PURCHASE, LETTER OF TRANSMITTAL AND OTHER DOCUMENTS THAT BHO WILL
SHORTLY BE FILING WITH THE SECURITIES AND EXCHANGE COMMISSION AT THE
COMMISSION’S WEBSITE AT WWW.SEC.GOV OR BY CONTACTING D.F. KING & CO., INC.,
THE INFORMATION AGENT FOR THE TENDER OFFER AT
1-800-549-6746.  STOCKHOLDERS ARE URGED TO CAREFULLY READ THESE
MATERIALS PRIOR TO MAKING ANY DECISION WITH RESPECT TO THE TENDER
OFFER.




About B+H
Ocean Carriers Ltd.




General.The
Company was organized as a corporation under Liberian law on April 28, 1988 to
engage in the business of acquiring, investing in, owning, operating and selling
vessels for dry bulk and liquid cargo transportation.  As of October
13, 2008, the Company owned and operated five medium-range product tankers, one
Panamax product tanker and five ore/bulk/oil combination carriers (“OBOs”).  The
Company also owns a 50% interest in a company which is the disponent owner of a
1992-built 75,000 DWT Combination Carrier, effected through a lease
structure.  Each vessel accounts for a significant portion of the
Company’s revenues.




The
Company’s fleet of product tankers consists of “handy-size” vessels which are
between 30,000 and 50,000 summer dead-weight tons (“DWT”), and are able, by
reason of their smaller size, to trans­port commodities to and from most
ports in the world, including those located in less developed third-world
countries.  The Company’s Panamax product tanker is 68,500
DWT.  Product tankers are single-deck oceangoing vessels designed to
carry simulta­neously a number of segregated liquid bulk commodi­ties,
such as refined petroleum products, vegetable oils, caustic soda and
molasses.  The Company’s OBOs are between 74,000 and 84,000
DWT.  OBOs are combination carriers used to trans­port liquid,
iron ore or bulk products such as coal, grain, bauxite, phosphate, sugar, steel
products and other dry bulk commodities.




The
Company is organized as a corporation in Liberia, and its principal executive
office is located at Par La Ville Place, 14 Par La Ville Road, Hamilton HM 08,
Bermuda (telephone number (441) 295-6875).


Recent
developments.  Over the past several weeks, the shipping
industry has suffered significant adverse developments in both dry cargo freight
rates and the availability of bank finance for ship
owners.  Additionally, there has been a widespread loss of trade
finance for purchasers and shippers of bulk commodities, particularly dry
bulk.  As of October 16, 2008, the Baltic Freight Index was 1,506,
which is 12.8% of its May 20, 2008 all-time high level of 11,793.  It
is difficult to describe the turmoil being experienced in the current shipping
markets, both for ship values and freight rates.




In the
past two or three weeks, the Company has sustained the default of two of its dry
cargo charterers, ICI on MV SACHEM and Hubel Shipping on MV
ALGONQUIN.  The rates currently obtainable for short term employment
for these vessels are approximately one third of the contractual rate due from
the defaulting charterers.  An agreement to sell MV ALGONQUIN has been
entered into and a 20% deposit has been received from the buyer for a sale at
$18.0 million (a lower price than initially agreed due to market conditions) for
delivery in first quarter of 2009.  This transaction necessitated a
third quarter of 2008 vessel impairment charge of approximately $6.0
million.




A second
vessel, the 50%-owned OBO SEAPOWET, had been put under contract for sale and was
expected to close on October 20, 2008.  On October 9, buyers
informally advised that they would not be able to close, and official word was
received on October 15, with buyers acknowledging that they will forfeit their
$5.0 million deposit.




The
adverse effects of the global banking and liquidity crisis on shipping and on
the Company cannot be quantified, but they are significant.  The
Company believes that of its seven current bank lenders, five are presently
unable to make or fund new commitments, and the other two are unwilling to do
so.




Since
December 2006, the Company purchased a series of puts on the Panamax Bulkcarrier
Index for the average of four time charters, known as “PMAX4TC”.  A
number of the previous quarters of reported earnings have included non-cash
losses attributable to the deep decline in market value of these
puts.  However, in the present extreme dry cargo freight market
decline, this portfolio of puts has increased in value
dramatically.  The extreme volatility of the underlying rates makes it
difficult to refer to a “present” value, but results will show a non-cash
increase in the value of these puts in excess of $13 million.  A
number of these puts, above 60% in value, are pledged as additional collateral
on the mortgage financing of MV SACHEM and any monthly settlements or sale
proceeds will be blocked or used to prepay mortgage debt.




Operations
remain on a fairly steady state for vessels other than MV ALGONQUIN and MV
SACHEM.  MV CAPT. T.J. HUDNER went into the yard for conversion to
bulk carrier in August, before the major collapse of dry rates and the loss of
the two charters described above.  It is not possible to change or
stop that work without incurring substantial losses, so it remains on schedule
for completion this December.




Notwithstanding
recent oil price declines, the Company remains pleased with the employment
prospects for its accommodation work barge, “SAFECOM 1”, now under construction
and scheduled for completion in fourth quarter of 2009.




Miscellaneous.This
press release, including any documents incorporated by reference or deemed to be
incorporated by reference, contains “forward-looking statements,” which are
statements relating to future events, future financial performance, strategies,
expectations and competitive environment.  Words such as “may,”
“will,” “should,” “could,” “would,” “predicts,” “potential,” “continue,”
“expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates”
and similar expressions, as well as statements in the future tense, identify
forward-looking statements.




Stockholders
should not read forward-looking statements as a guarantee of future performance
or results.  They will not necessarily be accurate indications of
whether or at what time such performance or results will be
achieved.  Forward-looking statements are based on information
available at the time those statements are made and/or management’s good faith
belief at that time with respect to future events.  Such statements
are subject to risks and uncertainties that could cause actual performance or
results to differ materially from those expressed in or suggested by the
forward-looking statements.  Important factors that could cause such
differences include, but are not limited to:  uncertainties related to
BHO’s ability to implement BHO’s business strategy; uncertainties related to
litigation; economic and political conditions in the U.S. and abroad; and other
risks outlined in BHO’s filings with the SEC.  All forward-looking
statements are effective only as of the date they are made and BHO disclaims any
intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.  These risks and uncertainties include risks related to
BHO’s businesses as well as the factors relating to the transactions discussed
in BHO’s offer to purchase.  Stockholders should not place undue
reliance on the forward-looking statements, which speak only as to the date of
the offer to purchase or the date of documents incorporated by
reference.