ELETSON AFFILIATE REDUCES NEWBUILDING ORDERS

PIRAEUS, March 20, 1998 -- Fleves Shipping Corporation, an affiliate of Eletson Holdings Inc. ("Eletson"), has sold back to Newport News Shipbuilding ("NNS") for an undisclosed amount two of its three remaining newbuilding contracts. The delivery of the 46,500 deadweight (dwt) double hull product tanker m/t Agathonissos is scheduled for later this year. Upon delivery, the vessel will be operated by Eletson under a long term bareboat charter. Financing for the m/t Agathonissos will be provided by US goverment-backed Title XI loan guarantees. As a result of this transaction, the bareboat charters for the other two vessels will be cancelled.

The sale, mainly due to substantial construction delays, is not expected to have a material financial impact on Eletson. However, it allows Eletson shareholders to redeploy capital on more attractive terms and provides the flexibility to explore other strategic growth opportunities in light of current market conditions, and always in line with the goal of building value in Eletson.

Eletson owns and operates one of the world's largest fleets of medium-size product tankers. The fleet, including the vessel under construction at NNS, presently consists of 19 double hull Greek-flag vessels, all of which were delivered after 1989, with a combined capacity of approximately 1,029,000 dwt.

Eletson contact:Vassilis E. Kertsikoff, Piraeus +30 1 428 2300