OMI CORPORATION (OMM) NEWS RELEASE OCTOBER 11, 2000
                  FOR THE QUARTER ENDED SEPTEMBER 30, 2000 AND
                        AGREEMENTS TO ACQUIRE NEW VESSELS

                                                      CONTACT: FREDRIC S. LONDON
                                                                 OMI CORPORATION
                                                                  (203) 602-6789

STAMFORD CT, OCTOBER 11, 2000 - OMI CORPORATION  (OMM:NYSE)  today announced its
release of financial results for the third quarter ended September 30, 2000. OMI
reported net income of $22,375,000 or $0.38 basic earnings per share (net income
of $23,807,000 or $0.40, excluding the loss on the disposal of a vessel) for the
third quarter 2000  compared to a net loss of $7,119,000 or $0.17  basic/diluted
loss per share for the same period in 1999. For the nine months ended  September
30,  2000,  the net income was  $21,733,000  or $0.39 basic  earnings  per share
compared to the net loss of  $37,555,000 or $0.90  basic/diluted  loss per share
(including  $0.07 income from the cumulative  effect of the change in accounting
principle) for the nine months ended September 30, 1999.  Revenue of $54,855,000
for the three months ended and  $122,055,000 for the nine months ended September
30, 2000 increased $29,084,000 or 113 percent and $30,771,000 or 34 percent over
the three and nine months ending September 30, 1999, respectively.

For the nine months ended  September  30,  2000,  excluding  $14,587,000  in net
losses from the disposal of four product  carriers,  disposal of a joint venture
and the write  down of two other  vessels  to be  disposed  of,  net  income was
$36,320,000 or $0.65 earnings per basic share. Included in the nine months ended
September 30, 1999 net loss of $37,555,000, were losses aggregating $30,917,000,
which were from the following non-recurring adjustments;  the provision for loss
on lease  obligation of  $6,229,000,  losses from the write down and disposal of
five older crude carriers and the sale leaseback of a Suezmax tanker aggregating
$23,574,000  and  losses on the write  down and  disposal  of two joint  venture
investments aggregating  $1,114,000.  Such losses were offset by income from the
cumulative change in accounting principle of $2,729,000.

The Company also  reported  that it had agreed to acquire  from another  owner a
contract for one new Suezmax  tanker  scheduled  for delivery  from Daewoo Heavy
Industries  Ltd.  in January  2001.  The  Company  has the option to advance the
delivery  to  November  2000.  It has also  entered  into a letter of intent for
Onomichi  Dockyard  Co. Ltd.  to build one new 47,000  deadweight  tons  ("dwt")
product  carrier for delivery in February  2002.  OMI has options to acquire two
additional product carriers for delivery in 2003.

Craig H. Stevenson,  Jr., Chairman, Chief Executive Officer and President of the
Company  commented  "We are  pleased  that the  third  quarter  produced  strong
results. This bodes well for the next two quarters,  which are traditionally the
strongest  for tanker  owners.  We are also  pleased to be able to acquire a new
Suezmax vessel, which is a sister-ship to five of the Company's Suezmaxes,  with
an  early  delivery  date.  The one new  product  carrier  and,  if the  Company
exercises  its options,  two  additional  product  carriers,  will  continue the
process of replacing  the Company's  single-hull  vessels with newer double hull
vessels.  The  Company's  goal to have the most  efficient,  safe,  high quality
vessels with  maximum  fleet  utilization  is becoming a reality with our market
alliances,  deliveries  of the  newbuildings  and  disposals  of less  efficient
vessels."

CURRENT HIGHLIGHTS
Tanker rates  continued to surge during the third  quarter with record high Time
Charter Equivalent  revenues ("TCE") for its Suezmax fleet and the highest rates
for OMI's product  carriers since the 1991 gulf war. Since the majority of OMI's
fleet  currently  operates in the spot market either  directly or through pools,
the Company has benefited greatly from tanker rate increases this quarter.

On October 12,  2000,  the Company  expects to close on its  refinancing  of its
existing bank  indebtedness  and financing for its 47,000 dwt  newbuilding to be
delivered in November 2000, discussed further below. (See Financial Items).

During  August  2000,  OMI  contracted  to acquire from  another  shipowner  two
handymax product carriers.  One vessel was delivered September 27, 2000 from the
shipyard,  and the other,  currently under  construction at Onomichi Dockyard in
Japan,  will be delivered to the Company in late November 2000. The first vessel
commenced  a two year  time  charter  to an oil  company  in  September  and the
November  delivery  will  commence  a similar  two year  charter to the same oil
company.

On August 11, 2000, the Company sold a 29,996 dwt product carrier built in 1989.

FLEET REPORT
OMI is a major international tanker owner and operator.  Currently,  OMI's fleet
comprises 21 vessels,  including three chartered-in  vessels. The fleet includes
five wholly-owned  Suezmaxes,  three  chartered-in  Suezmaxes,  three 66,000 dwt
product tankers currently  carrying crude oil, eight handysize product carriers,
one handymax  product  carrier and one Ultra Large Crude Carrier  ("ULCC").  OMI
will take  delivery  of another  handymax  newbuilding  in  November  2000,  the
above-announced Suezmax in January 2001. The Company has also signed a letter of
intent for one handymax  product  carrier to be delivered in February  2002 (and
options to acquire two additional handymaxes).

The Company  participates in three marketing alliances for its Suezmax,  Panamax
and IPC product carrier fleets.  The alliances combine strengths to better serve
customers by giving them more options,  at the same time giving the Company cost
savings and access to cargoes  which it might  otherwise be unable to carry.  In
1998, OMI formed a joint venture,  Alliance  Chartering LLC  ("Alliance"),  with
Frontline Ltd., to charter both companies' Suezmaxes. Alliance currently markets
the services of  approximately  40 Suezmaxes.  In 1999, OMI entered into a joint
venture,  International  Product  Carriers  Limited ("IPC") with Osprey Maritime
Limited for midsize  product  tankers.  IPC began  operations on May 1, 1999 and
currently  markets the services of approximately 30 vessels.  Currently,  six of
OMI's product  carriers are operating  under  adjustable rate time charters with
IPC. OMI also has its three Panamax tankers  operating in the Star Tankers Pool,
which is the largest commercial operator of Panamaxes in the world.

During the third quarter,  the Company's  spot market vessels (seven  Suezmaxes,
one ULCC, three Panamaxes and six product  carriers)  averaged daily TCEs (which
includes waiting time) of $42,041 for Suezmaxes,  $29,044 for the ULCC,  $22,257
for  Panamaxes  and $12,774 for the product  carriers on spot  charters.  Market
rates for spot market voyages in the fourth quarter are higher than the previous
quarter averages in all categories.

FINANCIAL INFORMATION
The following table summarizes OMI  Corporation's  results of operations for the
nine and three months ended  September  30, 2000  compared to the nine and three
months ended September 30, 1999:
<TABLE>
<CAPTION>
                                                                                FOR THE THREE                      FOR THE NINE
                                                                                MONTHS ENDED                       MONTHS ENDED
                                                                                SEPTEMBER 30,                      SEPTEMBER 30,
RESULTS OF OPERATIONS                                                        2000          1999               2000            1999
---------------------                                                        ----          ----               ----            ----
(In thousands except per share data)
(Unaudited)
<S>                                                                      <C>           <C>                 <C>            <C>
Operating revenues (TCE revenues)                                          $  47,591      $  20,619       $ 103,836       $  70,262
Operating expenses (includes charter hire expenses)                           10,972         14,534          32,991          42,232
                                                                           ---------      ---------       ---------       ---------
Net voyage revenues                                                           36,619          6,085          70,845          28,030
Depreciation and amortization                                                  4,514          5,627          11,949          17,944
Provision for loss on lease obligation(1)                                       --             --              --             6,229
General and administrative expenses                                            2,817          2,299           8,528           7,528
Loss (gain) on disposal/write down of assets-net(2),(3)                        1,432            (92)         14,051          23,574
                                                                           ---------      ---------       ---------       ---------
Operating income (loss)                                                       27,856         (1,749)         36,317         (27,245)

Loss on disposal/write down of joint venture investments(4)                     --           (1,114)           (536)         (1,114)
Net interest expense                                                           7,074          4,010          18,310          11,668
Other-net                                                                        588           --             2,213            --
Equity (loss) in operations of joint ventures                                  1,005           (246)          2,049            (257)
                                                                           ---------      ---------       ---------       ---------

Income (loss) before cumulative effect of change in
  accounting principle                                                     $  22,375         (7,119)         21,733         (40,284)

Cumulative effect of change in accounting principle(5)                          --             --              --             2,729


Net income (loss)                                                          $  22,375      $  (7,119)      $  21,733       $ (37,555
                                                                           =========      =========       =========       =========


Basic earnings (loss) per common share before
  cumulative effect of change in accounting principle                      $    0.38      $   (0.17)      $    0.39       $   (0.97)
Basic earnings (loss) per common share                                     $    0.38      $   (0.17)      $    0.39       $   (0.90)
Diluted earnings (loss)  per common share before
  cumulative effect of change in  accounting principle                     $    0.37      $   (0.17)      $    0.39       $   (0.97)
Diluted earnings (loss) per common share                                   $    0.37      $   (0.17)      $    0.39       $   (0.90)

Weighted average shares outstanding-basic                                     59,211         41,647          55,749          41,635

Adjusted EBITDA(6)                                                         $  33,802      $   3,786       $  62,317       $  20,502

(1)  The  year-to-date  1999  provision  for  loss on  vessels  chartered  in of
     $6,229,000  was a  non-recurring  accounting  adjustment  due to the  lease
     obligation exceeding estimated future cash flows at that time.

(2)  Loss on disposal/write down of assets-net, includes a loss of $1,432,000 on
     the sale of a vessel in August 2000 and a loss of $4,801,000 on the sale of
     a  vessel  contracted  for in  March  2000  and  written  down  to its  net
     realizable value in the first quarter 2000. Losses  aggregating  $7,833,000
     for four vessels previously  classified as assets to be disposed of, two of
     which were sold in the second  quarter  2000 and two of which  vessels  net
     realizable values were adjusted.

(3)  Loss on disposal of assets-net,  includes  losses for five vessels held for
     sale at June 30,  1999  (four of which  were sold in 1999) and one  Suezmax
     vessel which was sold on June 30, 1999 in a sale/leaseback transaction.

(4)  A loss  from the  sale of a joint  venture  in the  first  quarter  2000 of
     $536,000  was  recorded.  Loss  on  disposal/write  down of  joint  venture
     investments  during the nine  months in 1999  represents  the loss on OMI's
     sale of its 49 percent interest in White Sea Holdings Inc. of approximately
     $815,000 and a write down of its investment in OMI-Heidmar joint venture of
     approximately $299,000.

(5)  The  cumulative  effect  of the  change  in  accounting  principle  is from
     recognizing  voyage freight for vessels  operating on voyage  charters from
     the  load-to-load  basis  to the  discharge-to-discharge  basis,  effective
     January 1, 1999.

(6)  Adjusted "EBITDA" represents Operating income (loss) from operations before
     depreciation  and  amortization  expense,  loss on  disposal/write  down of
     assets-net  and  lease  provision.  Adjusted  EBITDA  is  not  required  by
     generally accepted accounting principles and should not be considered as an
     alternative to net income or any other measure of  performance  required by
     generally  accepted  accounting  principles  or  as  an  indicator  of  the
     Company's operating performance.
</TABLE>

<TABLE>

CONDENSED BALANCE SHEETS                                     SEPTEMBER 30,  2000      DECEMBER 31, 1999
---------------------------                                  -------------------      -----------------
(In thousands)                                                  (Unaudited)

<S>                                                             <C>                       <C>
Cash and cash equivalents                                        $ 23,625                  $  7,381
Assets to be disposed of                                           15,130                    90,996
Other current assets                                               27,680                    22,818
Vessels and other property-net                                    444,606                   291,416
Construction in progress (newbuildings)                              --                      25,340
Other assets                                                       33,984                    34,464
                                                                 --------                  --------
Total assets                                                     $545,025                  $472,415
                                                                 ========                  ========

Current liabilities                                              $ 61,724                  $ 77,239
Long-term liabilities                                             260,189                   223,410
Total equity                                                      223,112                   171,766
                                                                 --------                  --------
TOTAL LIABILITIES AND EQUITY                                     $545,025                  $472,415
                                                                 ========                  ========
</TABLE>

RESULTS

Operating  or TCE revenue,  which is voyage  revenue  less voyage  expenses,  of
$47,591,000  increased $26,972,000 for the three months ended September 30, 2000
compared to  $20,619,000  for the three months  ended  September  30, 1999.  TCE
revenue  increased  $33,574,000  from  $70,262,000  for the  nine  months  ended
September 30, 1999 compared to $103,836,000  the nine months ended September 30,
2000.  The net increase in TCE revenue can be  attributed  to earnings from both
the Crude and Clean fleets. OMI's Crude fleet revenues increased  $24,832,000 in
the third quarter 2000 compared to the same period in 1999 ($28,512,000 increase
in the nine  months  2000  comparatively),  primarily  for its  Suezmax  vessels
operating in the spot market,  OMI's ULCC vessel which began  operating  July 1,
2000 as a wholly owned vessel and for its Panamax vessels, which carry crude oil
on adjustable time charters  through a marketing pool. In addition  improved TCE
rates in the 2000 quarter  compared to 1999 were earned by the  1998-2000  built
Suezmax vessels operating in the spot market including  increases in TCE revenue
of $9.2 million for the third  quarter 2000 and $12.9  million  increases in TCE
revenue for the nine months ended  September 30, 2000,  which were attributed to
two new  vessels  delivered  in March and May 2000.  The  Clean  fleet  revenues
continued  to improve in the third  quarter  2000 for  vessels  operating  under
adjustable  rate time  charters  through a marketing  pool.  The majority of the
increases in the Clean fleet  revenue,  however,  were earned by the two product
carriers  delivered  in  mid-1999,  which  operate on time  charters.  The other
increases in revenue for IPC vessels  were offset by decreases  from the sale of
four vessels, three in May 2000 and one in August 2000. Significant increases in
bunker costs have mitigated  increases in TCE revenues during the three and nine
months ended September 30, 2000 in comparison to the three and nine months ended
September  30,  1999.  See the  Market  Summary  for  further  explanations  for
fluctuations in spot rates.

Operating  expenses (vessel expenses and charter hire expenses)  decreased a net
of $3,562,000  for the three months ended  September 30, 2000 and $9,241,000 for
the nine months ended  September  30, 2000 compared to the same periods in 1999.
Net  decreases in operating  expenses  include  decreases in vessel  expenses of
$2,893,000  for the  three  months  and  $9,340,000  for the nine  months  ended
September 30, 2000.  Decreases in vessel expenses are primarily  attributable to
the disposal of older crude  vessels in 1999 and the disposal of the aframax and
four product carriers in 2000 (decreases in these vessels exceeded the increases
in vessel expense for the two new crude  carriers and two products  delivered in
1999),  in  addition  to lower  expenses  in 2000  compared  to 1999 to  operate
younger, more cost efficient vessels.  Decreases in charter hire expense relates
to a vessel which was offhire for drydock in the second quarter 2000 and reduced
charter  hire  expense due to a non  recurring  adjustment  recorded  June 1999.
Offsetting increases to charter hire expense were due to the sale/leaseback of a
vessel, which began July 1999.

The following tables reflect OMI's principal operating activities:
<TABLE>
                                                                                  FOR THE THREE                    FOR THE NINE
                                                                                   MONTHS ENDED                    MONTHS ENDED
IN THOUSANDS                                                                       SEPTEMBER 30,                  SEPTEMBER 30,
(UNAUDITED)                                                                     2000           1999            2000           1999
-----------                                                                     ----           ----            ----           ----
CRUDE FLEET:
<S>                                                                             <C>            <C>             <C>            <C>
   New Suezmaxes/ULCC:
     TCE Revenue (includes one vessel on time charter)                       $ 30,808       $  8,044        $ 58,446       $ 27,099
                                                                             --------       --------        --------       --------
     Operating Expenses                                                         2,273          2,086           6,163          5,198
     Charter Hire Expense                                                       4,027          4,696          11,578         11,479
                                                                             --------       --------        --------       --------
     Net Voyage Revenue                                                        24,508          1,262          40,705         10,422
                                                                             --------       --------        --------       --------

     Depreciation                                                               2,778          1,556           6,478          4,664
     Provision for loss on lease obligation(1)                                   --             --              --            6,229
                                                                             --------       --------        --------       --------
     Operating income (loss)                                                 $ 21,730       $   (294)       $ 34,227       $   (471)
                                                                             ========       ========        ========       ========


     Number of vessels owned(2)                                                     6              3               6              3
     Number of vessels chartered-in(3)                                              3              3               3              3
     Number of operating days                                                     828            552           1,954          1,625

   Panamaxes:

     TCE Revenue                                                             $  6,144       $  2,940        $ 14,509       $  9,163
                                                                             --------       --------        --------       --------
     Operating Expense                                                          1,206          1,746           3,945          4,530
     Charter Hire Expense                                                        --             --              --             --
                                                                             --------       --------        --------       --------
     Net Voyage Revenue                                                         4,938          1,194          10,564          4,633
     Depreciation                                                                --            1,036            --            3,108
                                                                             --------       --------        --------       --------
     Operating income                                                        $  4,938       $    158        $ 10,564       $  1,525
                                                                             ========       ========        ========       ========


     Number of vessels owned                                                        3              3               3              3
     Number of operating days                                                     276            256             822            799

   Old Suezmaxes/Aframax: (sold in 1999 & 2000)

     TCE Revenue                                                             $   --         $  1,129        $  1,077       $  9,258
                                                                             --------       --------        --------       --------
     Operating Expenses                                                          --              686             214          7,790
     Charter Hire Expense                                                        --             --              --             --
                                                                             --------       --------        --------       --------
     Net Voyage Revenue                                                          --              443             863          1,468
     Depreciation                                                                --             --              --            1,614
                                                                             --------       --------        --------       --------
     Operating Income (loss)                                                 $   --         $    443        $    863       $   (146)
                                                                             ========       ========        ========       ========


     Number of vessels owned(4)                                                  --                2               0              2
     Number of operating days                                                    --              219              82          1,095

TOTAL CRUDE FLEET OPERATING INCOME (LOSS)                                    $ 26,668       $    307        $ 45,654       $    908
                                                                             ========       ========        ========       ========

Note:  Number of operating days is net of offhire for drydock and does not include waiting days.

(1)  The  year-to-date  1999  provision  for  loss on  vessels  chartered  in of
     $6,229,000 was a non-recurring adjustment.

(2)  On June 30,  2000,  OMI  acquired  a ULCC  vessel  from its  joint  venture
     partner.  During March and May 2000,  two newly built Suezmax  vessels were
     delivered and started their first voyages in the second quarter.

(3)  On June 30, 1999, the Company completed a sale/leaseback for the COLUMBIA.

(4)  Operating  results in 2000 reflect  adjustments to vessels sold in 1999 and
     results from the aframax vessel delivered to new owners in March 2000.
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                                                            FOR THE THREE                        FOR THE NINE
                                                                             MONTHS ENDED                        MONTHS ENDED
IN THOUSANDS                                                                 SEPTEMBER 30,                       SEPTEMBER 30,
(UNAUDITED)                                                              2000             1999               2000              1999
-----------                                                              ----             ----               ----              ----
<S>                                                                    <C>               <C>               <C>               <C>
CLEAN FLEET:
   Products (IPC Pool from 1999):

     TCE Revenue                                                       $ 7,589           $ 7,414           $22,232           $23,584
                                                                       -------           -------           -------           -------
     Operating Expenses                                                  2,852             4,714             9,216            12,727
     Charter Hire Expense                                                 --                --                --                --
                                                                       -------           -------           -------           -------
     Net Voyage Revenue                                                  4,737             2,700            13,016            10,857
     Depreciation                                                        1,117             2,534             3,583             7,597
                                                                       -------           -------           -------           -------
     Operating Income                                                  $ 3,620           $   166           $ 9,433           $ 3,260
                                                                       =======           =======           =======           =======


     Number of vessels owned(1)                                              6                10                 6                10
     Number of operating days                                              593               895             2,236             2,640

   Products On Time Charter:

     TCE Revenue                                                       $ 3,061           $ 1,088           $ 7,573           $ 1,088
                                                                       -------           -------           -------           -------
     Operating Expenses                                                    539               307             1,699               307
     Charter Hire Expense                                                 --                --                --                --
                                                                       -------           -------           -------           -------
     Net Voyage Revenue                                                  2,522               781             5,874               781
     Depreciation                                                          543               278             1,628               278
                                                                       -------           -------           -------           -------
     Operating Income                                                  $ 1,979           $   503           $ 4,246           $   503
                                                                       =======           =======           =======           =======


   Number of vessels owned(2)                                                3                 2                 3                 2
   Number of operating days                                                187                87               551                87

TOTAL CLEAN FLEET OPERATING INCOME                                     $ 5,599           $   669           $13,679           $ 3,763
                                                                       =======           =======           =======           =======

Note:  Number of operating days is net of offhire for drydock and does not include waiting days.

(1)  One vessel was sold in August 2000 and three vessels were sold in May 2000.
(2)  One handymax vessel was delivered September 27, 2000. Two handysize vessels
     were delivered in July and September 1999.
</TABLE>

MARKET SUMMARY

SUEZMAX TANKER MARKET
Tanker TCE's have  recovered  sharply this year as a result of increasing  world
oil  demand  at a time of very low oil  inventory  levels,  increased  crude oil
seaborne  volumes as OPEC reversed its 1999  production  cuts and has raised oil
production  by 3.2  million  b/d to date  in 2000  and  relatively  high  tanker
scrapping  activity so far this year,  which offsets  deliveries of new vessels,
resulting in a stable tanker supply.

World oil demand is  expected  to  increase  this year.  The  expected  increase
reflects strong  economic  activity in  industrialized  areas and in the Pacific
region.  Specifically,  among the main oil importers, there has been significant
oil  demand  increase  in the  United  States  as a result of  continued  strong
economic  activity and in the growing  economies of the Pacific  region as well,
due to their ongoing economic  recovery from the severe  financial  debacle that
they  encountered in 1997. At the same time,  world oil inventories  continue at
historically  very low  levels.  Currently,  commercial  crude oil stocks in the
three main oil consuming  areas - the U.S.,  Western Europe and Japan - are 8.3%
below a year ago level and at the lowest level in at least the last ten years.

The positive  outlook for the crude  tanker  market is expected to continue as a
result of the need for additional oil production by OPEC,  beyond that announced
recently,  to  accommodate  the  seasonal  world oil demand  gains in the winter
months at a time when oil  inventories  are at very low levels.  In addition,  a
relatively  stable  tanker  supply,  given the fleet  age  demographics  and the
continued  focus of  governments  and  charterers on safe,  high-quality  modern
tonnage, coupled with the strength of the world economy and the resultant growth
in demand for oil, should lead to a strong freight environment in the future.

In  the U.S.  market,  the Company does not believe that the President's  recent
decision to tap the country's  strategic  petroleum reserves will have an impact
on the demand for tankers.

PRODUCT TANKER MARKET
The product carrier market operates in a more stable rate  environment  than the
crude oil market and has  traditionally  provided  shipowners with a predictable
stream of  revenues.  The  product  carrier  market is a segment of the  overall
tanker market which facilitates  seaborne  transportation of petroleum  products
such as  gasoline,  jet fuel,  kerosene,  naphtha  and gas oil.  While crude oil
tankers carry oil from  production  areas to refineries,  product  carriers move
refined products from refineries to distribution points.



The product  tanker  market  continued  to improve with each quarter in 2000 and
TCE's for handysize  product  tankers in the Caribbean  reached  levels not seen
since the very strong product  tanker market early in 1997.  This was the result
of continued  strong oil demand growth in the Atlantic region at a time that oil
product inventories,  especially stocks for the seasonal distillates,  were very
low, and the modest product tanker fleet increase so far this year.

The Company  believes that product  carrier  demand will continue to increase in
the  foreseeable  future.  First,  world oil demand is expected to increase at a
higher rate compared to the second half of the 1990's.  Additionally,  the major
oil consuming areas- North America,  Western Europe and Asia- have a shortage of
refinery  capacity,  while  Latin  America,  Africa and the  Middle  East have a
surplus.  Furthermore,  refinery  capacity is  expanding  in the Middle East and
Latin America while the shortage of refinery capacity in the major oil consuming
areas is expected to persist.  Finally, there have been some fundamental changes
in the pattern of product trades toward longer-haul movements.

FINANCIAL ITEMS
Net interest expense  increased  $3,064,000 for the three months ended September
30, 2000 and $6,642,000 for the nine months ended September 30, 2000 compared to
the three and nine months ended September 30, 1999. The increases were primarily
due to interest expense on additional borrowings to finance a portion of the two
Suezmax  and two  product  carrier  newbuildings  delivered  in 1999  and  2000.
Capitalized  interest  was reduced  corresponding  with the  delivery of the new
ships.  Additionally,  interest margins increased as a result of the refinancing
of debt in February  2000,  which will  decrease  with the amended  financing in
October.  As of September  30, 2000,  OMI was in  compliance  with its financial
covenants.

On October 12, 2000,  OMI expects to close on its  refinancing of its debt in an
aggregate  amount of $310 million,  which includes the financing of the handymax
newbuilding  to be  delivered  in November  2000.  The amended  credit  facility
reduces  interest  margins,  does not  require the  disposal of assets,  reduces
operating   restrictions  and  provides  financing  for  the  November  handymax
newbuilding. Amendments also include principal payments of $40 million per annum
for the first two years and $25 million per annum for the following  three years
with a balloon payment at maturity.

Equity (loss) in operations of joint ventures increased $1,251,000 for the three
months  ended  September  30,  2000 and  $2,306,000  for the nine  months  ended
September  30, 2000  compared to the three and nine months ended  September  30,
1999. OMI participated in one vessel-owning joint venture, which operated a ULCC
vessel until June 30, 2000 when OMI acquired the joint venture  company from its
partner.  Rates for the ULCC  vessel  increased  during  the first  half of 2000
compared to the nine months ended September 30, 1999.

FORWARD LOOKING INFORMATION
This release contains certain forward-looking  statements.  These statements are
based on management's current expectations and observations,  and are subject to
a number of risks and  uncertainties  that could cause actual  results to differ
materially  from  the   forward-looking   statements.   Additional   information
concerning  these  statements  and other  matters is contained in the  Company's
periodic filings with the Securities and Exchange Commission.

OMI  Corporation  has made  arrangements  to use the  service of DeraCom for its
earnings  presentation  which is  scheduled  for  October  18, 2000 at 2:00 p.m.
Conference participants should call 1-800-633-8638, and the international number
is  609-450-1027.  There  will  be  a  recorded  playback  available  after  the
teleconference  call for two weeks after the original call. The toll free number
is 1-800-835-2663 and 609-896-8185 for international playbacks.