SeaRiver Maritime, Inc. Announces Discontinuation of Inland Marine Operations

HOUSTON--(BUSINESS WIRE)--Jan. 7, 2003--SeaRiver Maritime Inc. (SeaRiver), the U. S. marine transportation affiliate of Exxon Mobil Corporation (NYSE:XOM), has informed its employees that it will discontinue its inland "River" Fleet operations on or about January 14, 2003.

In addition, SeaRiver will close its inland operating offices in Baton Rouge, La. and Baytown, Texas. Related commercial activities coordinated out of SeaRiver's headquarters in Houston are not affected by this decision.

Fleet optimization and transportation efficiencies were the major factors in SeaRiver's decision. "This decision is the result of an ongoing evaluation of our operation," said SeaRiver President, Paul Revere. "We will be working closely with all affected employees and business partners to ensure that the transition is carried out in a smooth and orderly fashion. We will continue to focus our efforts to ensure that our customers receive safe, reliable and efficient marine transportation."

About 200 SeaRiver fleet and shoreside personnel will be affected by the discontinuation of the River Fleet operations. "In addition to severance benefits, SeaRiver will provide career placement assistance to help employees through the transition period," Revere added.

SeaRiver also announced the signing of an asset purchase agreement with Kirby Corporation (Kirby) for the sale of SeaRiver's owned River Fleet assets. Under the terms of the agreement, SeaRiver will sell 48 double hull inland tank barges and 7 inland towboats to Kirby for $35.4 million in cash. SeaRiver's two remaining towboats and two of its harbor tugs will also be sold, and in-chartered chartered equipment will be returned to its owners or assigned to service providers as a result of this announcement. Commercial contracts and other operating agreements will be initiated, as necessary. Additional details of the sales agreement and contract terms for transportation are confidential.

SeaRiver owns and operates U.S. flag oceangoing tankers and harbor tugs and provides a wide range of marine services.

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