Stelmar Comments on Pearlmar

The M/T Pearlmar, operated by Stelmar Tankers was inspected by US customs authorities on June 9, 2004 after arriving from Esmeraldas, Ecuador. Between 70 and 100 pounds of cocaine were found in the transom space above the rudder, which is located below the water line outside the hull of the ship. Following the inspection, the vessel was not detained and no arrests were made. Pearlmar is discharging its cargo as planned and authorities have not advised us of any delays. Stelmar is a signatory to the voluntary U.S. Customs Sea Carrier Initiative Agreement and are cooperating fully in the ongoing investigation.