IMSK - 1st Quarter 2007

The pre-tax profit was USD6.6 million for the 1Q07, up from USD0.4 million for the 4Q06 (USD6.8
million in the 1Q06). The pre-tax result includes a gain of USD4.2 million from the sale of Norgas
Victory and Norgas Navigator. The result of the 1Q07 on an EBITDA basis was USD8.0 million
(USD8.9 million in 4Q06 and USD11.1 million in 1Q06).

The I.M. Skaugen Group (IMSK) today reported satisfactory first quarter results

The pre-tax profit was USD6.6 million for the 1Q07, up from USD0.4 million for the 4Q06 (USD6.8

million in the 1Q06). The pre-tax result includes a gain of USD4.2 million from the sale of Norgas

Victory and Norgas Navigator. The result of the 1Q07 on an EBITDA basis was USD8.0 million

(USD8.9 million in 4Q06 and USD11.1 million in 1Q06).

I.M. Skaugen (IMS) is engaged in three business units, through Norgas, Skaugen Marine Construction

(SMC) and Skaugen PetroTrans (SPT). Norgas comprises the group's gas transportation. SMC is

responsible for the new building activities in China, comprising now in total 11 new gas carriers. SPT is

involved in ship-to-ship transfer of crude oil and LNG.

Norgas continued to perform satisfactorily during 1Q07. In 2007, favorable global economic indicators

and demand for seaborne transportation of petrochemicals should keep vessel utilization high for the

year. The fleet was almost wholly engaged for the quarter, resulting in acceptable overall earning for

the fleet, despite higher costs increasing our "vessel break-even cost levels".

Skaugen Marine Construction (SMC), IMS's business unit responsible for all aspects of the

company's newbuilding programmes. The first vessel completed as part of this programme, the 3,200

CBM LPG carrier "Mei Wen Ti", was delivered on 8th January, 2007. Completed on budget on an "ex

yard" basis, this is around half the cost of purchasing similar vessels in the market and augurs well for

further vessels which are expected to be delivered at a rate of one every six months over the next

several years. Two additional vessels were ordered during the quarter, which now raises the current

orderbook of vessels to be built in China by SMC to 11 vessels - the plans call for another four more to

be added during 2007. We expect to experience an increase in the construction costs of the SMC vessels

of about 10-12 per cent (excl. of non-construction pre-delivery cost) due to a substantial increase of raw

materials and specially stainless steel prices in addition to higher cost for ship components. We further

have built up a larger presence of our own people in connection with these projects to monitor quality

and financial controls and to complement certain know how resources needed where our alliance

partners in China are lacking these.

Skaugen PetroTrans (SPT) once again had a challenging quarter as it continued to suffer from having

to hire-in crude oil vessels to service our customers at high charter rates and to cover its contract

obligations. The market for Aframaxes continues to defy predictions and remains strong which have

put upward pressure on supply costs. The need to charter-in vessels should begin to ease in the second

half of 2007 with delivery of the six new purpose built Aframax tankers commencing in mid-2007 and

ending early 2008. Despite these difficulties the fundamentals for the business remain positive and the

company has achieved a number of successes in the first quarter including a growth in business in both

the West coast of the US and in Europe, as well as the world's first commercial LNG ship-to-ship

lightering, in Scapa Flow.

I.M. Skaugen ASA

Board of Directors

If you have any questions, please contact:

Bente Flø, Chief Financial Officer, on telephone +47 23 12 03 30/+47 91 64 56 08 or by e-mail:

bente.flo@skaugen.com. This press release is also available on the Internet at our website:

http://www.skaugen.com.

Listed on the Oslo Stock Exchange, I.M. Skaugen ASA (IMSK) - www.skaugen.com - is a Marine

Transportation Service Company engaged in the hassle free transportation of petrochemical gases

and LPG, ship-to-ship transfer of crude oil and LNG, as well as the design and construction of smaller

and specialized high quality marine vessels.

IMSK is a fully integrated shipping company that designs, builds, owns, mans and manages our own

ships. IMSK customers are major international companies in the oil and petrochemical industry, whom

we serve worldwide from our operations in Dubai (UAE), Freeport and Houston (Texas), Oslo

(Norway), Singapore Sunderland (UK), Nanjing, Shanghai, Taizhou, Zhangjiagang and Wuhan

(China). IMSK operates recruitment and training programmes in St. Petersburg (Russia) and Wuhan

(China) for the crewing of vessels.

IMSK employs approx. 1,500 people and currently operates 44 vessels worldwide. The fleet comprises

petrochemical gas and LPG carriers, Aframax tankers, vessels and barges for the transportation of

gases on the Yangtze River (China) and a small number of workboats for Skaugen PetroTrans (SPT).

IMSK has a comprehensive newbuilding project in China where it has two LPG vessels of 3,200 cbm;

three purpose designed combination carriers with LPG/Ethylene/VCM and Organic chemicals carrying

capability and up to ten advanced 10,000 cbm LNG/LPG/Ethylene gas carriers are on order for Norgas

for delivery from beginning 2007 and onwards. IMSK has invested in infrastructure with both a

shipyard and a cargo plant maker in China to ensure innovative and flexible vessels at low cost. Six

new, purpose designed and built "Aframax sized tankers", are on order for delivery to SPT on a long

term Bareboat charter and commencing during 2007.

1 Quarter 2007