Nov 24, 2004

Teekay in LNG unit spin off

Teekay Shipping Corporation (NYSE:TK announced today that its wholly-owned subsidiary, Teekay LNG Partners L.P. ("Teekay LNG Partners"), has filed a registration statement with the U.S. Securities and Exchange Commission for an initial public offering of its common units. Application will be made to list the common units on the New York Stock Exchange.

Teekay also announced that its Board of Directors has authorized the repurchase of up to 3,000,000 shares of its common stock. Shares will be repurchased in the open market at times and prices considered appropriate by the company. The timing of any purchases and the exact number of shares to be purchased will be dependent on market conditions.

Teekay LNG Partners is a Marshall Islands partnership recently formed by Teekay as part of its strategy to expand its operations in the LNG shipping sector. This master limited partnership will provide LNG and crude oil marine transportation services under long-term, fixed-rate contracts with major energy and utility companies through its fleet of four LNG carriers and five suezmax class crude oil tankers, primarily consisting of vessels Teekay obtained through its acquisition of Naviera F. Tapias S.A. in April 2004.

The initial public offering will include approximately 5,500,000 common units, representing an aggregate ownership of approximately 22 percent of the master limited partnership. After the offering, Teekay will own approximately a 78 percent interest in the partnership, including common units, subordinated units and its general partner interest. The offering will increase to approximately 6,325,000 common units if the underwriters exercise in full their over-allotment option, reducing Teekay's ownership to approximately 75 percent.

The book-running manager of the initial public offering will be Citigroup Global Markets Inc. and UBS Investment Bank will act as co-lead manager. Other co-managers will include A.G. Edwards, Wachovia Securities, Raymond James, Jefferies and Company, Inc. and Deutsche Bank Securities. A written prospectus meeting the requirements of Section 10 of the Securities Act of 1933, when available, may be obtained from Citigroup Global Markets Inc., at Citigroup Global Markets Inc., c/o Prospectus Department, 140 58th Street, Brooklyn, New York, 11220; fax: 718-765-6734; phone: 718-765-6732.

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