Nordic American Tanker Shipping Ltd. (NAT)-(NYSE: NAT) - Announces Dividend and Earnings in respect of the 1st Quarter of 2006

Nordic American Tanker Shipping Limited (the "Company") today announced its results for the 1st quarter of 2006. The tanker market was strong during the 1st quarter of 2006, resulting in solid earnings per share and one of the highest dividends declared since the listing of the Company's common shares in 1997. The dividend is expected to be paid on or about May 31st to shareholders of record as of May 12th. The Company has declared a dividend for 34 consecutive quarters.

The Company's successful growth policy - manifested by the Company's expansion from three to nine vessels since the autumn of 2004 - has bolstered the Company's earnings and ability to pay dividends. As a result of the growth of the Company's fleet in line with its policy, NAT is able to pay a higher dividend per share and produce higher earnings per share at the same spot rate level.

Highlights:

  * The Board of Directors has declared a dividend of $1.58 per
    share for the 1st quarter of 2006 compared to $1.15 per share for
    the 1st quarter of 2005. Over the last four quarters including the 1st
    quarter of 2006 a total of $4.90 has been paid in
    dividends which is 13.2% in relation to the average daily share price
    over the same period.

  * The 1st quarter 2006 net income was $1.07 per share compared
    to $0.53 per share for the 1st quarter of 2005.

  * The spot market during the 1st quarter of 2006 was lower than
    the 4th quarter of 2005.

  * No vessels were in dry dock during the 1st quarter of 2006.

  * On February 27th the Company announced that it had agreed to
    acquire a double hull Suezmax vessel of 157,332 dwt. The
    vessel, Nordic Jupiter, joined our fleet on April 10th.

  * In conjunction with the acquisition of the Nordic Jupiter, the
    Company also announced on February 27th that it commenced a
    public offering. The offering was closed on March 14th,
    providing net proceeds to the Company of $115.2m based on an offering
    price of $28.50 per share.  As of March 31, 2006, there are
    21,029,700 shares issued and outstanding.

Dividends per Share, Earnings per Share and Financials:

The Board has declared a dividend of $1.58 per share in respect of the 1st quarter of 2006. This compares to a dividend of $1.15 per share in respect of the 1st quarter of 2005. The 4th quarter 2005 dividend was $1.88 per share. The dividend of $1.58 per share will be paid on or about May 31st to shareholders of record as of May 12th 2006.

For details regarding calculation and payment of dividend, please see (1) at the end of this release.

Net income was $19.1m for the 1st quarter of 2006 or $1.07 per share (EPS). This compares to a net income of $7.5m or $0.53 per share for the 1st quarter of 2005. The net income for the 4th quarter of 2005 was $25.1m or $1.51 per share.

The earnings per share for the 1st quarter of 2006 have been impacted by non-cash charges of $0.16 per share in aggregate due to the allotment of restricted shares in connection with the recent offering, and grants under the 2004 Stock Option Plan. For details please see (2) at the end of this release.

Operating cash flow(3) was $29.5m in the 1st quarter of 2006 compared to $13.9m in the 1st quarter of 2005. Operating cash flow for the 4th quarter of 2005 was $32.8m.

For the 1st quarter of 2006, operating costs of our vessels and general and administrative costs were according to our expectations. We focus on an efficient cost structure which we believe is among the lowest in the industry.

We currently estimate that our average cash breakeven for the vessels in our fleet is approximately $8,500 per day per vessel. The breakeven rate is the amount of average daily revenues for our vessels which would cover our cash general and administrative expenses, voyage expenses, if any, vessel operating expenses, interest expenses and other financial charges.

After Nordic Jupiter joined our fleet April 10th 2006, the net debt of the Company stood at approximately $83m - an average debt of $9.2m per vessel. Our strong balance sheet provides room for further expansion of our fleet expected to take place during 2006. The debt of the company, drawn under the five year credit facility of $300m falls due in 2010. The credit facility may not be reduced by the lenders and there is no repayment obligation during the tenure of the facility during which the Company pays interest only.

No vessels were in dry dock during the 1st quarter of 2006, and there are no vessels scheduled for dry docking during the 2nd quarter of 2006.

The table below shows the number of vessel revenue days over the last six quarters for all the vessels, reflecting the growth of the Company.

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| Period       | 4q04 | 1q05 | 2q05 | 3q05 | 4q05 | 1q06 |
|-------------- ------ ------ ------ ------ ------ ------|
| Revenue days | 314  | 371  | 549  | 576  | 697  | 720  |
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