NEW YORK –
Overseas Shipholding Group, Inc. (NYSE:OSG) (the “Company” or “OSG”)
announced today the filing of a registration statement on Form 10 with
the U.S. Securities and Exchange Commission (“SEC”), in connection with
the Company’s previously announced plan to separate its international
and domestic businesses. OSG expects that any separation would be
achieved through a spin-off of OSG International, Inc. (“OIN”) in the
second half of 2016 to create two standalone publicly traded companies,
each of which will be better able to focus on its own business, creating
the potential to enhance the long-term performance and shareholder value
of each company.

“The filing of the Form 10 is an important step in the execution of our
plan to create two industry-leading independent public companies,” said
Captain Ian T. Blackley, OSG’s president and CEO. “Separating our
international and domestic businesses will allow each company to more
effectively pursue their distinct operating priorities and strategies
and better enable management of both companies to capitalize on
opportunities for long-term growth and profitability. Both businesses
will continue to provide safe, reliable, high-quality transportation
services to our customers in each sector.”

OSG International, Inc.

OIN owns and operates one of the largest fleets of international crude
and product tankers worldwide. At June 30, 2016, OIN owned or operated a
fleet of 55 vessels with a combined capacity of approximately 6.5
million deadweight tons and 864,800 cubic meters. OIN’s operating fleet
comprises one ULCC, eight VLCCs, eight Aframaxes/LR2s, 12 Panamaxes/LR1s
and 20 MR tankers. Through joint venture partnerships, OIN has ownership
interests in four liquefied natural gas carriers and two floating
storage and offloading service vessels.

Overseas Shipholding Group, Inc.

After the spin-off, OSG will consist of the currently existing U.S. Flag
business, which operates the largest fleet of tankers and ATBs in the
Jones Act industry. At June 30, 2016, the 24-vessel fleet consisted of
eight ATBs, two lightering ATBs, three shuttle tankers, nine MR tankers,
and two non-Jones Act MR tankers that participate in the U.S. Maritime
Security Program.

Spin-Off Remains Subject to Various Conditions

The spin-off and timing remains subject to approval of the OSG board of
directors and the satisfaction of various other conditions, including
the effectiveness of the registration statement on Form 10. OSG may, at
any time, decide to abandon the spin-off.

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
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 and in OIN’s Registration
Statement on Form 10 under the caption “Risk Factors” and in similar
sections of other filings made by the Company and OIN 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