Foss Maritime Acquires East Coast Tug Company Constellation Tug

Announcement today that Foss is expanding

SEATTLE, July 17, 2006 – Foss Maritime Company – a Seattle-based marine services company with the largest fleets of tugs and barges on the American West Coast – announced today that it is expanding into the American East Coast market with the acquisition of Constellation Tug Company of Charlestown, Massachusetts. With the planned introduction of new, technologically advanced tractor tugs to the Constellation fleet, the company will increase its capacity and capabilities, and improve service for its Boston Harbor and Massachusetts Bay customers.

Foss has agreed to acquire the equipment, assets and trade names of Constellation Tug Company of Charlestown, MA and will operate the company as a subsidiary under the name Constellation Maritime Company. The current leadership of Constellation will continue to manage the company when it becomes a subsidiary of Foss. Marc Villa, a partner at Constellation Tug, has been named President of the company, and the other partners at Constellation Tug – Conti Coluntino, Jeff Nichols and Bob Manning – have also accepted management positions.

Constellation currently operates four tugs and three barges, providing ship assist and marine services in the ports of Boston, Quincy and Salem. In late 2006, two tractor tugs will join the Constellation fleet, including one of the Foss-built new DOLPHIN class ASD tractor tugs with 5000HP and 65 short tons of Bollard pull.

“The addition of the new Dolphin class tug is going to put Constellation in a new class,” said Marc Villa, current partner and newly appointed president of Constellation. “The high horse power and strong bollard pull of this 78 foot tug is ideal for Boston Harbor ship docking. By adding two tractor tugs to our existing fleet of conventional tugs, Constellation will be able to offer extraordinary service in Boston and Massachusetts Bay.” Until the new tugs arrive, Constellation will improve capacity and customer service by chartering two conventional 4000 hp tugs.

Paul Stevens, President and CEO of Marine Resources Group and Chairman of Foss Maritime said, “We look forward to welcoming Constellation’s employees to our company. This transaction will expand our geographical presence to the East Coast. It also increases our ship assist capacity which, we believe, strengthens Foss’ position as a leading provider of ship assist and tanker escorts in the U.S. and expands our ability to provide safe, reliable and efficient service to our customers.”