1305507--3/16/2007--Arlington_Tankers

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If we cannot refinance our loans, or in the event of a default under our secured term loan facility, we may have to sell our Vessels, which may leave no additional funds for distributions to shareholders We may not be able to recharter our Vessels profitably after their Charters expire, unless they are extended at the option of the Charterers Concordia and Stena are able to influence the Company, including the outcome of shareholder votes We are leveraged and subject to restrictions in our financing agreements that impose constraints on our operating and financing flexibility We are a holding company, and we depend on the ability of our subsidiaries to distribute funds to us in order to satisfy our financial and other obligations U.S. tax authorities could treat us as a passive foreign investment company, which could have adverse U.S. federal income tax consequences to U.S. shareholders Our operating income could fail to qualify for an exemption from U.S. federal income taxation, which would reduce our cash flow U.S. investors who own our common shares may have more difficulty in protecting their interests than U.S. investors who own shares of a Delaware corporation Bermuda law and our bye-laws permit our board of directors to establish preference shares having terms which could reduce or eliminate dividends payable to our common shareholders Our bye-laws restrict shareholders from bringing certain legal action against our officers and directors We have anti-takeover provisions in our bye-laws that may discourage a change of control The highly cyclical nature of the tanker industry may lead to volatile changes in charter rates and vessel values which may adversely affect our earnings Factors beyond our control may adversely affect the value of our Vessels An over supply of new vessels may adversely affect charter rates and vessel values Terrorist attacks and international hostilities can affect the tanker industry, which could adversely affect our business The value of our Vessels may fluctuate and adversely affect our liquidity and may result in breaches under our secured term loan facility We operate in the highly competitive international tanker market which could affect our position if the Charterers do not renew our Charters Compliance with environmental laws or regulations may adversely affect our business The shipping industry has inherent operational risks, which may not be adequately covered by insurance

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1305507--3/16/2007--Arlington_Tankers_Ltd.