Capital adjustments

The Board of Frontline approved on June 20, 2000 a private placement of USD 48.5 million in equity to a limited number of leading international financial institutions. A total of 4 million shares were issued at NOK 104.50 per share. The transaction was successfully placed by Fearnley Fonds ASA and Alfred Berg. Part of the proceeds from the private placement will be used to finance the equity investment in the two Suezmaxes Frontline recently bought from Euronav. The remaining part of the proceeds will be used to fund further acquisitions in the modern Suezmax and VLCC market.

Chairman John Fredriksen says in a comment to the transaction: “The strengthening of Frontline’s equity combined with the strong operating cashflow we are currently enjoying, put Frontline in an excellent position to continue to be the driving force in the consolidation of the tanker market. The success of Tankers International and Alliance Chartering confirm that we are on the right track.

We see several interesting investment opportunities in today’s market. Opportunities which would strengthen Frontline’s market position further and, most importantly, give a good financial return to our shareholders.”