NEW YORK –
Overseas Shipholding Group, Inc. (NYSE:OSG) (the “Company” or “OSG”)
announced today that its Board of Directors has approved the previously
announced plan to separate its international and domestic businesses
into two independent, publicly traded companies: Overseas Shipholding
Group and International Seaways.

Upon separation, International Seaways will own and operate one of the
largest fleets of international crude and product tankers worldwide. OSG
will consist of the currently existing U.S. Flag business, which
operates a fleet of tankers and ATBs in the blue water Jones Act market.
Both companies will have industry-leading market positions, simplified
operating structures and strong financial profiles better enabling
management of both companies to capitalize on long-term growth
opportunities.

“Today’s announcement marks another milestone towards the completion of
our business separation,” said Captain Ian T. Blackley, OSG’s president
and CEO. “As two independent, industry-leading companies, OSG and
International Seaways can drive more focused business strategies and
benefit from enhanced operating and financial flexibility. The
separation will also present a unique opportunity for investors by
creating two distinct and attractive investment profiles, which will
allow each company to attract a broader base of shareholders.”

International Seaways has reserved the stock symbol INSW on the New York
Stock Exchange (“NYSE”), while OSG will maintain the symbol OSG on the
NYSE.

The spin-off and timing remains subject to the satisfaction of various
conditions, including the effectiveness of the Registration Statement on
Form 10. OSG may, at any time, decide to abandon the spin-off.

Information regarding International Seaways and its business, including
details of the spin-off, are included in International Seaways’
Registration Statement on Form 10, which International Seaways has filed
with the U.S. Securities and Exchange Commission (“SEC”) and is
available at http://www.sec.gov.

About OSG

Overseas Shipholding Group, Inc. (NYSE:OSG) is a publicly traded tanker
company providing energy transportation services for crude oil and
petroleum products in the U.S. and International Flag markets. OSG is
committed to setting high standards of excellence for its quality,
safety and environmental programs. OSG is recognized as one of the
world’s most customer-focused marine transportation companies and is
headquartered in New York City, NY. More information is available at www.osg.com.

Forward-Looking Statements

This release contains forward-looking statements. In addition, the
Company may make or approve certain statements in future filings with
the Securities and Exchange Commission (SEC), in press releases, or in
oral or written presentations by representatives of the Company. All
statements other than statements of historical facts should be
considered forward-looking statements. These matters or statements may
relate to the Company’s plans to issue dividends and make payments to
securityholders, its prospects, including statements regarding trends in
the tanker and articulated tug/barge markets, and possibilities of
spin-offs or certain strategic alliances and investments.
Forward-looking statements are based on the Company’s current plans,
estimates and projections, and are subject to change based on a number
of factors. Investors should carefully consider the risk factors
outlined in more detail in the Company’s Annual Report for 2015 on Form
10-K under the caption “Risk Factors” and in similar sections of other
filings made by the Company with the SEC from time to time. The Company
assumes no obligation to update or revise any forward-looking
statements. Forward-looking statements and written and oral forward
looking statements attributable to the Company or its representatives
after the date of this release are qualified in their entirety by the
cautionary statements contained in this paragraph and in other reports
previously or hereafter filed by the Company with the SEC.

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Investor Relations & Media:
Overseas Shipholding Group,
Inc.
Brian Tanner, 212-578-1645
btanner@osg.com