NEW YORK –
Overseas Shipholding Group, Inc. (NYSE MKT:OSG, OSGB) (the “Company” or
“OSG”) announced today that it has reached a final settlement with
Proskauer Rose LLP and certain of its partners in connection with the
previously disclosed lawsuit brought against that firm by the Company.
As part of the settlement, Proskauer Rose LLP has agreed to release the
claims it asserted against current and former officers of the Company,
including James Edelson and Myles Itkin.

“We are pleased to have reached an agreement to settle this case that we
believe is in the best interests of the Company and other stakeholders,”
said Captain Ian T. Blackley, OSG’s president and CEO. “By reaching a
final settlement we also eliminate the distractions that come with any
litigation allowing us to focus our full attention on adding value to
the business.”

The Company has been advised that, in connection with the settlement,
Proskauer plans to issue a press release. OSG has not approved the
contents of Proskauer’s press release, nor have any of its current or
former executives.

The Company will be issuing a subsequent press release to provide
additional details to Class B securities holders with regards to
settlement distribution information and conversion of Class B common
stock to Class A common stock and Class B warrants to Class A warrants.

About OSG

Overseas Shipholding Group, Inc. (NYSE MKT:OSG, OSGB) 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 list securities and
its prospects, including statements regarding trends in the tanker and
articulated tug/barge markets, and including prospects for 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 2014 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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160212005872/en/

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