EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 20-F
(Mark One)
[ ] REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) or
(g)
OF THE SECURITIES EXCHANGE ACT OF 1934

[ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2000

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to

Commission file number: 1-10137

EXCEL MARITIME CARRIERS LTD.

(Exact name of Registrant as specified in its charter)

LIBERIA

(Jurisdiction of incorporation or organization)

c/o Excel Maritime Carriers Ltd.
Par La Ville Place
14 Par La Ville Road
Hamilton HM JX Bermuda

(Address of principal executive offices)

Securities registered or to be registered pursuant to Section
12(b) of the Act: Common shares, par value $.01

Securities registered or to be registered pursuant to Section
12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to
Section 15(d) of the Act: None

Indicate the number of outstanding shares of each of the issuer's
classes of capital or common stock as of the close of the period
covered by the annual report.

Common Shares, par value $.01 11,496,169
Class B Common Shares,
par value $.01 114,946

Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15 (d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Registrant was required to
file such reports), and (2) has been subject to such filing
requirement for the past 90 days.

Yes X No _____

Indicate by check mark which financial statement item the
Registrant has elected to follow.

Item 17 _____ Item 18 X

TABLE OF CONTENTS

ITEM 1 - IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND
ADVISORS............................................5
ITEM 2 - OFFER STATISTICS AND EXPECTED TIMETABLE.............5
ITEM 3 - KEY INFORMATION.....................................5
ITEM 4 - INFORMATION ON THE COMPANY..........................8
ITEM 5 - OPERATING AND FINANCIAL REVIEW AND PROSPECTS.......16
ITEM 6 - DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES.........21
ITEM 7 - MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS..23
ITEM 8 - FINANCIAL STATEMENTS...............................24
ITEM 9 - THE OFFER AND LISTING..............................25
ITEM 10 - ADDITIONAL INFORMATION.............................25
ITEM 11 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISKS.......................................26
ITEM 18 - FINANCIAL STATEMENTS...............................27
ITEM 19 - EXHIBITS...........................................29

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Matters discussed in this document may constitute forward-
looking statements. The Private Securities Litigation Reform
Act of 1995 provides safe harbor protections for forward-looking
statements in order to encourage companies to provide
prospective information about their business. Forward-looking
statements include statements concerning plans, objectives,
goals, strategies, future events or performance, and underlying
assumptions and other statements, which are other than
statements of historical facts.

Excel Maritime Carriers Ltd., or the Company, desires to take
advantage of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and is including this
cautionary statement in connection with this safe harbor
legislation. This document and any other written or oral
statements made by us or on our behalf may include forward-
looking statements, which reflect our current views with respect
to future events and financial performance. The words
"believe", "except," "anticipate," "intends," "estimate,"
"forecast," "project," "plan," "potential," "will," "may,"
"should," "expect" and similar expressions identify forward-
looking statements.

The forward-looking statements in this document are based upon
various assumptions, many of which are based, in turn, upon
further assumptions, including without limitation, managements
examination of historical operating trends, data contained in
our records and other data available from third parties.
Although we believe that these assumptions were reasonable when
made, because these assumptions are inherently subject to
significant uncertainties and contingencies which are difficult
or impossible to predict and are beyond our control, we cannot
assure you that we will achieve or accomplish these
expectations, beliefs or projections.

In addition to these important factors and matters discussed
elsewhere herein and in the documents incorporated by reference
herein, important factors that, in our view, could cause actual
results to differ materially from those discussed in the
forward-looking statements include the strength of world
economies and currencies, general market conditions, including
fluctuations in charterhire rates and vessel values, changes in
demand in the tanker market, as a result of changes in OPEC's
petroleum production levels and world wide oil consumption and
storage, changes in the company's operating expenses, including
bunker prices, drydocking and insurance costs, changes in
governmental rules and regulations or actions taken by
regulatory authorities, potential liability from pending or
future litigation, general domestic and international political

conditions, potential disruption of shipping routes due to
accidents or political events, and other important factors
described from time to time in the reports filed by the Company
with the Securities and Exchange Commission.

PART I

ITEM 1 - IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS

Not applicable

ITEM 2 - OFFER STATISTICS AND EXPECTED TIMETABLE

Not applicable

ITEM 3 - KEY INFORMATION

Selected Financial Data

The following selected historical income and balance sheet
financial data as of and for the years ended December 31, 1996,
1997, 1998, 1999 and 2000 have been derived from the audited
Consolidated Financial Statements of the Company. The following
information should be read in conjunction with "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" and the Company's Consolidated Financial Statements,
including the notes thereto, included elsewhere herein.

Selected Historical Financial Data
Excel Maritime Carriers Ltd.

Year Ended December 31, 2000

Income Statement Data
(All figures in $000,
except per share data) 1996 1997 1998 1999 2000

Revenues from vessels, net $7.684 $0 $7.525 $18.617 $30.660
Investment Income $0 $0 $0 $0 $8.417
Vessel operating expenses $4.745 $0 $5.949 $14.109 $19.273
Depreciation and amortisation $322 $0 $1.310 $624 $932
General and administrative
expenses $646 $275 $979 $1.217 $1.347
Gain (Loss) on sale of vessels -$11.508 -$574 $289
Other income (expenses), net -$348 $0 -$763 -$269 -$2.639
Net income (loss) $1.623 -$275 -$12.984 $1.824 $15.175
Net income (loss) per share $9,68 -$1,24 -$3,07 $0,23 $1,31

Balance Sheet Data at 31/12 1996 1997 1998 1999 2000
Current assets $0 $0 $7.446 $8.801 $5.021
Total assets $0 $0 $7.446 $27.470 $56.234
Current liabilities $0 $138 $1.124 $11.517 $15.241
Long-term debt, less current portion $0 $0 $0 $2.200 $11.754
Shareholders' equity $0 -$138 $6.322 $13.753 $29.239

(a) Income statement data for 1996 reflect the operation of B+H
up to December 4, 1996, when the Company ceased operations.
Income statement data for 1997 reflect the amount paid by new
owners for the termination of an existing management
agreement. Income statement data for 1998 reflect the
reactivation of the Company, operation and subsequent sale of
the five vessels.

(b) Per share calculations reflect retroactively the 1 - for -20
reverse stock split effected on May 8, 1998.

Risk Factors

Please note in this section, "we", "us" and "our" all refer
to the Company and its subsidiaries.

Cyclical nature of the Industry, Freight Rates and Vessel Values

We are an independent shipping company that operates in the
drybulk, crude and products markets. We may also enter other
sectors, including but not limited to the container market. While
this market diversification may insulate us to some extent from
fluctuations in any particular market in which we operate, each
of these markets has been cyclical in varying degrees causing
fluctuations in the freight rates we can charge. This in turn
effects our profitability and our vessels' market values. These
fluctuations have been primarily due to changes in the level and
pattern of global economic growth, the highly competitive nature
of the world shipping industry and changes in the supply and
demand for seaborne shipping capacity.

The supply of and demand for shipping capacity strongly
influences freight rates. Demand for the type of commodities
carried and the distance that those commodities must be moved by
sea primarily determine the demand for shipping capacity. World
and regional economic and political conditions (including
developments in international trade, fluctuations in industrial
and agricultural production and armed conflicts), environmental
concerns, weather patterns, changes in seaborne and other
transportation costs and, with respect to crude oil and petroleum
products, and competition from alternative energy sources affect,
among other things, demand for commodities. The size of the
existing fleet in a particular market, the number of new building
deliveries, the scrapping of older vessels and the number of
vessels out of active service (i.e. laid-up, drydocked, awaiting
repairs or otherwise not available for hire), determines the
supply of shipping capacity, which is measured by the amount of
suitable tonnage available to carry cargo. In addition to the
prevailing and anticipated freight rates, factors that affect the
rate of newbuilding, scrapping and laying-up include newbuilding
prices, second hand vessel values in relation to scrap prices,

costs of bunkers and other operating costs, costs associated with
classification society surveys, normal maintenance and insurance
coverage, the efficiency and age profile of the existing fleet in
the market and government and industry regulation of maritime
transportation practices, particularly environmental protection
laws and regulations. These factors influencing the supply of and
demand for shipping capacity are outside of our control, and we
cannot predict the nature, timing and degree of changes in
industry conditions.

We expect the market value of our vessels to fluctuate
largely in relation to existing and anticipated freight rates as
well as with changes in general economic and market conditions.
Furthermore, as our vessels grow older we generally expect their
market value to decline.

Risks Associated with the Purchase and Operation of Second
Hand Vessels

We acquired all of our vessels second hand, and we estimate
their useful lives to be between 25 and 30 years, depending on
various market factors and management's ability to comply with
government and industry regulatory requirements. Part of our
business strategy includes the continued acquisition of second
hand vessels when we find attractive opportunities.

In general, expenditures necessary for maintaining a vessel
in good operating condition increase as a vessel ages. Second
hand vessels may also develop unexpected mechanical and
operational problems despite adherence to regular survey
schedules and proper maintenance. Cargo insurance rates also tend
to increase with a vessel's age, and older vessels tend to be
less fuel-efficient than newer vessels. While the difference in
fuel consumption is factored into the freight rates that our
older vessels earn, if the cost of bunker fuels were to increase
significantly, it could disproportionately affect our vessels and
significantly lower our profits. In addition, changes in
governmental regulations, safety or other equipment standards may
require

-- expenditures for alterations to existing equipment;

-- the addition of new equipment, or

-- restrictions on the type of cargo a vessel may
transport. We cannot give assurances that market
conditions will justify such expenditures or enable us
to operate our vessels profitably during the remainder
of their economic lives.

Dependence on Spot Voyages

We currently charter most of our vessels on a spot charter
basis. Although dependence on spot charters is not unusual in the
shipping industry, the spot charter market is highly competitive
and spot charter rates may significantly fluctuate based upon
available charters and the supply of and demand for seaborne
shipping capacity. While our focus on the spot charter market may
enable us to benefit if industry conditions strengthen, we must
consistently procure spot charter business. Conversely, such
dependence makes us vulnerable to declining market rates for spot
charters. We cannot give assurances that future available spot
charter will enable us to operate our vessels profitably.

Competition

We obtain charters for our vessels in highly competitive
markets in which our market share is insufficient to enforce any
degree of pricing discipline. Although we believe that no single
competitor has a dominant position in the markets in which we
compete, we are aware that certain competitors may be able to
devote greater financial and other resources to their activities
than we can, resulting in a significant competitive threat to us.
We cannot give assurances that we will continue to compete
successfully with our competitors or that these factors will not
erode our competitive position in the future.

Risk of Loss and Insurance

Adverse weather conditions, mechanical failures, human error,
war, terrorism, piracy and other circumstances and events create
an inherent risk of catastrophic marine disasters and property
loss in the operation of any ocean-going vessel. In addition,
the transportation of crude oil is subject to the risk of crude
oil spills, business interruptions due to political circumstances
in foreign countries, hostilities, labor strikes, and boycotts.
Any such event may result in loss of revenues or increased costs.

We carry insurance to protect against most of the accident-
related risks involved in the conduct of our business and we
maintain environmental damage and pollution insurance coverage.
We do not carry insurance covering the loss of revenue resulting
from vessel off-hire time. We cannot give assurances that all
covered risks are adequately insured against, that any particular
claim will be paid or that we will be able to procure adequate
insurance coverage at commercially reasonable rates in the
future. More stringent environmental regulations in the past have
resulted in increased costs for insurance against the risk of
environmental damage or pollution. In the future, we may be
unable to procure adequate insurance coverage to protect us
against environmental damage or pollution.

ITEM 4 - INFORMATION ON THE COMPANY

The Company

We, Excel Maritime Carriers Ltd., are an owner and operator
of dry bulk carrier vessels and product tankers. We are listed on
the American Stock Exchange (ticker: EXM), and are a provider of
worldwide seaborne transportation services for crude oil,
petroleum products, and dry bulk cargo.

We were incorporated on November 2, 1998 under the laws of
Liberia. Our business strategy is to expand and diversify our
fleet to achieve economies of scale and marketing strength in
each of the sectors in which we operate. We intend to expand our
presence in the tanker market and dry bulk market, in particular,
and may also diversify into the container shipping sector. In
accordance with this strategy, we intend to purchase additional
vessels in the open market as market conditions warrant.

For most of 2000, we owned and operated 7 vessels consisting
of one oil tanker and 6 dry bulk vessels. On December 31st 2000,
we owned and operated 6 vessels, one of which was an oil tanker,
and the remaining five were dry bulk carriers. Our vessels had
the following characteristics:

NAME TYPE DWT BUILT COUNTRY YARD

Alex Stream Suezmax Oil Tanker 140.037 1975 Japan Hitachi
Fighting Lady Capesize Bulker 141.013 1983 Korea Hyundai
Almar I Capesize Bulker 107.140 1979 Japan IHI
Petalis Handysize Bulker 35.982 1975 Japan Osaka
Lucky Lady Handysize Bulker 27.422 1975 Japan Hakodate
Holy Island Handysize Bulker 24.525 1977 Japan Imabari
476.119

The dry bulk vessel m/v Evan, built in 1974, which we
acquired in April 1999, was sold on November 14th, 2000.

In addition to the direct ownership and operation of vessels,
we believe that ownership of shares in other worldwide national
exchange listed shipping companies is a beneficial way to
diversify our investment activities.

In line with the above mentioned strategy, we purchased,
during 2000, 24.99% of the outstanding shares of a Danish
shipping company listed on the Copenhagen Stock Exchange called
A/S Dampskibsselskabet Torm (Torm). Torm was founded in 1889 and
its core business activity currently comprises three divisions:
product tanker, dry bulk and liner.

Torm's product tanker division specialises in the
transportation of refined oil products such as gasoline, jet
fuel, naphtha and diesel oil, as well as other fluid commodities
such as vegetable oil and molasses. Torm's tanker fleet at the
end of 2000 comprised seven Aframax size (80,000 to 120,000 dwt)
and eight Handysize (20,000 to 60,000 dwt) product tankers
totalling approximately 1.34 million dwt. In addition, Torm has
eight newbuildings on order.

Torm's dry bulk division focuses primarily on Panamax and
Handysize bulk carriers, wherein the principal commodities it
carries are grain, coal and iron ore. The dry bulk fleet at the
end of 2000 comprised four vessels.

Finally, Torm's liner division carries mainly containers,
break bulk, specialized cargoes and oil drilling equipment
between the United States and West Africa. In total, Torm had
five vessels in service throughout 2000.

For the year ended December 31, 2000, Torm recorded net
turnover of $273.4 million versus $194.2 million in 1999, and a
profit for 2000 of $35.6 million versus a loss of $15 million in
1999.

The International Tanker Shipping Market

Overview

OPEC's decision to boost production quotas during 2000,
adding some 2.7 million barrels of crude oil per day to the world
supply, increased OPEC's total daily production to 28.9 million
barrels and fuelled freight rate increases throughout most of
2000 of about 10% in the crude and the product tanker sectors.
This increase in turn caused a rise of more than 7% in cargo
quantity demand calculated in per ton-miles. Moreover, the United
States significantly replenished its inventories of oil products,
which resulted in an increase of about 6% in crude oil imports,
and 25% increase in the imports of clean products. As a result of
these factors, freight rates increased to their highest levels in
the last 25 years.

In 2000, the total worldwide tanker fleet grew by 2.1%,
reaching 281 million dwt. The orderbook (worldwide orders for new
ship buildings) for the coming years stood at 56.5 million dwt,
of which 7.3 million dwt comprised product tankers. Product
tanker scrapings in 2000 reached 15.2 million dwt compared to
17.3 million dwt in 1999.

The tanker market provides a transportation service between
oil producing and oil consuming nations. More than 80% of crude
oil production is moved on a seaborne basis, with trades from the

Middle East dominating. In contrast, a much smaller proportion of
refined products are traded, some representing export oriented
refineries, but many being intra-regional balancing movements.
International seaborne crude oil and refined petroleum products
transportation services are provided by two main types of
operators: major oil company captive fleets (both private and
state-owned) and independent shipowner fleets. Both types of
operators transport oil under short-term contracts (including
single-voyage spot charters) and long-term time charters, or
Contracts of Affreightment, with oil companies, oil traders,
refined petroleum product producers and government agencies. The
oil companies own, or control through long-term time charters,
approximately one-third of the current world tanker capacity,
while independent companies own or control the balance of the
fleet. The oil companies use their fleets not only to transport
their own oil, but also to transport oil for third-party
charterers in direct competition with independent owners and
operators in the tanker charter market. The seaborne oil
transportation business is fragmented, with no owner owning more
than approximately 3.5% of the world tanker fleet tonnage.

A significant and ongoing shift toward quality in vessels and
operations has been taking place in the tanker market over the
past several years as charterers and regulators increasingly
focus on safety and protection of the environment. Historically,
national authorities and international conventions have regulated
the seaborne crude oil and refined petroleum products
transportation industries. However, since 1990, legislation and
regulations such as the U.S. Oil Pollution Act of 1990 and IMO
protocols and classification society procedures, have emphasised
environmental protection by demanding higher-quality tanker
construction, maintenance, repair and operations. In addition,
oil companies acting as charterers, terminal operators, shippers
and receivers are becoming increasingly selective in their
acceptance of tankers, as they inspect and vet both vessels and
companies periodically. Although such changes raise the cost and
potential liabilities of vessel owners and operators, they also
raise the barriers to entry and accentuate the strengths of
shipowners with quality fleets and operations. We believe that
the increasingly stringent regulatory environment will accelerate
the obsolescence of poorly maintained low-quality tankers. See
"Regulation."

Vessel Classification and Primary Trade Routes

The world oil tanker fleet is generally divided into the
following six major types of vessel classifications, based on
vessel carrying capacity:

(in deadweight tons or dwt)

Handysize 10.000 60.000
Panamax 60.000 80.000
Aframax 80.000 120.000
Suezmax 120.000 200.000
VLCC 200.000 320.000
ULCC 320.000 more

Our tanker vessel falls into the suezmax size classification
and carries crude oil and residual fuel oil ("dirty" products).

VLCCs carry the largest percentage of crude oil. However,
because of port constraints, they are limited in their trading
routes. For example, only a few U.S. ports, such as the Louisiana
Offshore Oil Platform are capable of handing a fully loaded VLCC.
VLCCs primarily trade on long-haul routes from the Middle East to
Asia, Europe and the U.S. Gulf/Caribbean region but are also
active in trades from West Africa and the North Sea to the U.S.
and Asia. Suezmax tankers engage in a range of crude oil trades,
mostly from West Africa to the U.S., the Gulf of Mexico, the
Caribbean, Europe, the Mediterranean or within Asia. Aframax
tankers engage in shorter regional trades, mainly in Northwest
Europe, the Caribbean, the Mediterranean and Asia. Handysize
tankers trade on a variety of regional trade routes carrying
refined petroleum products and crude oil on trade routes not
suitable for larger vessels. While larger size vessels, generally
aframax and larger, typically carry only crude oil, a number of
such tankers have the capability to carry refined petroleum
products. However, handysize tankers carry the majority of
refined petroleum products, with more than 90% of vessels in this
size range transporting clean products. Certain vessels ranging
in size up to 120,000 dwt or more also carry refined petroleum
products, typically trading between the Middle East and Asia.

Regulation

The business of the Company and the operation of its vessels
are materially affected by government regulation in the form of
international conventions, national, state and local laws and
regulations in force in the jurisdictions in which the vessels
operate, as well as in the country or countries of their
registration. Because such conventions, laws, and regulations are
often revised, the Company cannot predict the ultimate cost of
complying with such conventions, laws and regulations or the
impact thereof on the resale price or useful life of its vessels.
Additional conventions, laws and regulations may be adopted which
could limit the ability of the Company to do business or increase
the cost of its doing business and which may materially adversely
affect the Company's operations. The Company is required by

various governmental and quasi-governmental agencies to obtain
certain permits, licenses and certificates with respect to its
operations. Subject to the discussion below and to the fact that
the kinds of permits, licenses and certificates required for the
operations of the vessels owned by the Company will depend upon a
number of factors, the Company believes that it has been and will
be able to obtain all permits, licenses and certificates material
to the conduct of its operations.

The Company believes that the heightened environmental and
quality concerns of insurance underwriters, regulators and
charterers will impose greater inspection and safety requirements
on all vessels in the tanker market and will accelerate the
scrapping of older vessels throughout the industry.

Environmental Regulation--International Maritime Organization
("IMO").

On March 6, 1992, the IMO adopted regulations, which set
forth new and upgraded requirements for pollution prevention for
tankers. These regulations, which went into effect on July 6,
1995, in many jurisdictions in which the Company's tanker
operates, provide that (i) tankers between 25 and 30 years old
must be of double-hull construction or of a mid-deck design with
double side construction, unless they have wing tanks or double-
bottom spaces, not used for the carriage of oil, which cover at
least 30% of the length of the cargo tank section of the hull, or
are capable of hydrostatically balanced loading which ensures at
least the same level of protection against oil spills in the
event of collision or stranding, (ii) tankers 30 years old or
older must be of double-hull construction or mid-deck design with
double-side construction, and (iii) all tankers will be subject
to enhanced inspections. Also, under IMO regulations, a tanker
must be of double-hull construction or a mid-deck design with
double side construction or be of another approved design
ensuring the same level of protection against oil pollution in
the event that such tanker (i) is the subject of a contract for a
major conversion or original construction on or after July 6,
1993, (ii) commences a major conversion or has its keel laid on
or after January 6, 1994, or (iii) completes a major conversion
or is a newbuilding delivered on or after July 6, 1996.

The operation of the Company's vessel is also affected by the
requirements set forth in the IMO's International Management Code
for the Safe Operation of Ships and Pollution Prevention (the
"ISM Code"). The ISM Code requires shipowners and bareboat
charterers to develop and maintain an extensive "Safety
Management System" that includes the adoption of a safety and
environmental protection policy setting forth instructions and
procedures for safe operation and describing procedures for
dealing with emergencies. The failure of a shipowner or bareboat

charterer to comply with the ISM Code may subject such party to
increased liability, may decrease available insurance coverage
for the affected vessels, and may result in a denial of access
to, or detention in, certain ports. Currently, each of the
Company's applicable vessels is ISM code-certified. However,
there can be no assurance that such certification will be
maintained indefinitely.

Environmental Regulations--The United States Oil Pollution Act of
1990.

The Unites States Oil Pollution Act of 1990 established an
extensive regulatory and liability regime for the protection and
cleanup of the environment from oil spills. The OPA affects all
owners and operators whose vessels trade in the United States,
its territories and possessions or whose vessels operate in
United States waters, which includes the United States'
territorial sea and its two hundred nautical mile exclusive
economic zone.

Under the OPA, vessel owners, operators and bareboat
charterers are "responsible parties" and are jointly, severally
and strictly liable (unless the spill results solely from the act
or omission of a third party, an act of God or an act of war) for
all containment and clean-up costs and other damages arising from
discharges or threatened discharges of oil from their vessels.
The OPA defines these other damages broadly to include:

(i) natural resources damages and the costs of assessment
thereof;

(ii) real and personal property damages;

(iii) net loss of taxes, royalties, rents, fees and other
lost revenues;

(iv) lost profits or impairment of earning capacity due to
property or natural resources damage;

(v) net cost of public services necessitated by a spill
response, such as protection from fire, safety or
health hazards, and (vi) loss of subsistence use of
natural resources.

The OPA limits the liability of responsible parties to the
greater of $1,200 per gross ton or $10 million per tanker that is
over 3,000 gross tons (subject to possible adjustment for
inflation). These limits of liability do not apply if an incident
was directly caused by violation of applicable United States
federal safety, construction or operating regulations or by a
responsible party's gross negligence or wilful misconduct, or if

the responsible party fails or refuses to report the incident or
to cooperate and assist in connection with oil removal
activities.

We currently maintain for each of our vessel's pollution
liability coverage insurance in the amount of $1 billion per
incident. If the damages from a catastrophic spill exceeded our
insurance coverage, it would severely hurt us.

Under the OPA, with certain limited exceptions, all newly
built or converted tankers operating in United States waters must
be built with double-hulls, and existing vessels which do not
comply with the double-hull requirement must be phased out over a
25-year period (1990-2015) based on size, age and hull
construction. Notwithstanding the phase-out period, The OPA
currently permits existing single-hull tankers to operate until
the year 2015 if they limit their operations within United States
waters to discharging at the Louisiana Off-Shore Oil Platform, or
off-loading by means of lightering activities within authorized
lightering zones more than 60 miles off-shore.

The OPA requires owners and operators of vessels to establish
and maintain with the United States Coast Guard evidence of
financial responsibility sufficient to meet their potential
liabilities under the OPA. In December 1994, the Coast Guard
implemented regulations requiring evidence of financial
responsibility in the amount of $1,500 per gross ton for tankers,
which includes the OPA limitation on liability of $1,200 per
gross ton and the U.S. Comprehensive Environmental Response,
Compensation, and Liability Act liability limit of $300 per gross
ton. Under the regulations, vessel owners and operators may
evidence their financial responsibility by showing proof of
insurance, surety bond, self-insurance, or guaranty. Under the
OPA, an owner or operator of a fleet of tankers is required only
to demonstrate evidence of financial responsibility in an amount
sufficient to cover the tanker in the fleet having the greatest
maximum liability under the OPA.

The Coast Guard's regulations concerning certificates of
financial responsibility provide, in accordance with the OPA,
that claimants may bring suit directly against an insurer or
guarantor that furnishes certificates of financial
responsibility. In the event that such insurer or guarantor is
sued directly, it is prohibited from asserting any contractual
defense that it may have had against the responsible party and is
limited to asserting those defenses available to the responsible
party and the defense that the incident was caused by the wilful
misconduct of the responsible party. Certain organizations, which
had typically provided certificates of financial responsibility
under pre-OPA 90 laws, including the major protection and
indemnity organizations, have declined to furnish evidence of

insurance for vessel owners and operators if they are subject to
direct actions or required to waive insurance policy defenses.

The Coast Guard's financial responsibility regulations may
also be satisfied by evidence of surety bond, guaranty or by
self-insurance. Under the self-insurance provisions, the ship
owner or operator must have a net worth and working capital,
measured in assets located in the United States against
liabilities located anywhere in the world, that exceeds the
applicable amount of financial responsibility. The Company has
complied with the Coast Guard regulations by providing a
financial guaranty from a related company evidencing sufficient
self-insurance.

OPA 90 specifically permits individual states to impose their
own liability regimes with regard to oil pollution incidents
occurring within their boundaries, and some states have enacted
legislation providing for unlimited liability for oil spills. In
some cases, states, which have enacted such legislation, have not
yet issued implementing regulations defining tanker owners'
responsibilities under these laws. The Company intends to comply
with all applicable state regulations in the ports where the
Company's vessels call.

Owners or operators of tankers operating in United States
waters are required to file vessel response plans with the Coast
Guard, and their tankers are required to operate in compliance
with their Coast Guard approved plans. Such response plans must,
among other things, (i) address a "worst case" scenario and
identify and ensure, through contract or other approved means,
the availability of necessary private response resources to
respond to a "worst case discharge," (ii) describe crew training
and drills, and (iii) identify a qualified individual with full
authority to implement removal actions.

Environmental Regulation--Other Environmental Initiatives.

The European Union is considering legislation that will
affect the operation of tankers and the liability of owners for
oil pollution. It is difficult to predict what legislation, if
any may be promulgated by the European Union or any other country
or authority.

Although the United States is not a party thereto, many
countries have ratified and follow the liability scheme adopted
by the IMO and set out in the International Convention on Civil
Liability for Oil Pollution Damage, 1969, as amended (the "CLC"),
and the Convention for the Establishment of an International Fund
for Oil Pollution of 1971, as amended. Under these conventions, a
vessel's registered owner is strictly liable for pollution damage
caused on the territorial waters of a contracting state by

discharge of persistent oil, subject to certain complete
defenses. Many of the countries that have ratified the CLC have
increased the liability limits through a 1992 Protocol to the
CLC. The liability limits in the countries that have ratified
this Protocol are currently approximately $4.0 million plus
approximately $566.0 per gross registered tonne above 5,000 gross
tonnes with an approximate maximum of $80.5 million per vessel,
with the exact amount tied to a unit of account which varies
according to a basket of currencies. The right to limit liability
is forfeited under the CLC where the spill is caused by the
owner's actual fault or privity and, under the 1992 Protocol,
where the spill is caused by the owner's intentional or reckless
conduct. Vessels trading to contracting states must provide
evidence of insurance covering the limited liability of the
owner. In jurisdictions where the CLC has not been adopted,
various legislative schemes or common law govern, and liability
is imposed either on the basis of fault or in a manner similar to
the CLC.

Environmental Regulation--Proposed IMO Regulations.

The IMO, in conjunction with the European Commission, has
proposed a timetable for the accelerated phasing-out of single-
hull oil tankers. Under the proposal, which will be discussed
further by the IMO's Marine Environment Committee in April 2001,
oil tankers delivered in 1973 and which do not comply with the
requirements for protectively located segregated ballast tanks
will be phased out by January 1, 2003.

The sinking of the oil tanker Erika off the coast of France
on December 12, 1999 polluted more than 250 miles of French
coastline with heavy oil. Following the spill, the European
Commission adopted a "communication on the safety of oil
transport by sea," also named the "Erika communication." As a
part of this, the Commission has adopted a proposal for a general
ban on single-hull oil tankers. The timetable for the ban shall
be similar to that set by the United States under OPA in order to
prevent oil tankers banned from U.S. waters from shifting their
trades to Europe. The ban plans for a gradual phase-out of
tankers depending on vessel type:
- -- Single-hull oil tankers larger than 20,000 dwt without
protective ballast tanks around the cargo tanks. Under current
proposals, vessels in this category would be phased out
progressively between January 1, 2003 and January 1, 2007,
depending on their year of delivery.
- -- Single-hull oil tankers larger than 20,000 dwt in which the
cargo tank area is partly protected by segregated ballast tanks.
Under current proposals, vessels in this category built before
1987 would be phased out after their 25th year of operation.
Vessels built after 1987 would be phased out between January 1,
2012 and January 1, 2017, depending on their year of delivery.

- -- Single-hull oil tankers between 5,000 dwt and 20,000 dwt.
Under the current proposals, vessels in this category built
before 1987 would be phased out between January 1, 2003 and
January 1, 2013, depending on their year of delivery. Vessels
built after 1987 would be phased out between January 1, 2013 and
January 1, 2017, depending on their year of delivery.

The International Dry Bulk Shipping Market

The overall growth rate achieved in the OECD countries during
2000 was 3,3%, with the United States exhibiting a growth rate of
5%, Japan 1,3% and the Newly Industrialized Countries (NIC) 7,3%.
The forecast for 2001 is for a more modest rate of 2,6% for the
OECD countries, 1,4% in the United States, 1% in Japan and 5,3%
in the NICs.

The dry bulk sector, in 2000 also exhibited positive market
results. Grain transport in 2000 grew by 5% with most of the
increase taken up in the first three quarters of the year.
Japanese steel production for 2000 was the highest in nine years
reaching the level of 106 million tons and imports of iron ore
and coal reached their highest levels in two decades. European
and Asian Steel production also expanded and imports of iron ore
and coal in some of the Asian economies reached double figure
growth rates. The larger cape size ships enjoyed the biggest
increase in dry bulk rates.

In 2000, the dry bulk fleet increased by 3.1% reaching 277.4
million dwt The orderbook for the coming years stood at 36.5
million dwt., of which 60% is anticipated to be delivered in
2001.

Customers

The Company, through Maryville, has many long-established
customer relationships, and management believes it is well
regarded within the international shipping community. During the
past 15 years, vessels managed by Maryville have been repeatedly
chartered by subsidiaries of major oil companies, oil traders and
dry bulk operators. The Company's tankers have delivered cargoes
to and routinely passed the necessary inspections for major oil
companies, including: Shell, Exxon, BP, Mobil, Chevron, Agip and
Texaco.

The Company's vessels are currently operated on either the
spot market or the short-term time charter markets. The spot
charter and short-term time charter markets are highly
competitive and rates within those markets are subject to
volatile fluctuations while longer-term time charters provide
income at pre-determined rates over more extended periods of
time. There can be no assurance that the Company will be

successful in keeping all its vessels fully employed in these
short-term markets or that future spot and short-term charter
rates will be sufficient to enable its vessels to be operated
profitably.

Inspection by Classification Society

The hull and machinery of every commercial vessel must be
classed by a classification society authorised by its country of
registry. The classification society certifies that a vessel is
safe and seaworthy in accordance with the applicable rules and
regulations of the country of registry of the vessel and the
Safety of Life at Sea Convention. The Company's vessels are
currently enrolled with Bureau Veritas ("BV") and the American
Bureau of Shipping ("ABS"). BV has awarded ISM certification to
Maryville and the Company's vessels.

A vessel must undergo Annual Surveys, Intermediate Surveys
and Special Surveys. In lieu of a Special Survey, a vessel's
machinery may be on a continuous survey cycle, under which the
machinery would be surveyed periodically over a five-year period.
The Company's vessels are on Special Survey cycles for hull
inspection and continuous survey cycles for machinery inspection.
Every vessel is also required to be drydocked every two to three
years for inspection of the underwater parts of such vessel.
Generally, the Company will make a decision to scrap a vessel or
continue operations at the time of a vessel's fifth Special
Survey.

Scheduled Special Surveys and Drydockings

The following table sets forth upcoming periodic survey and
drydocking dates for the Company's vessels:

Next Special Next Dry- Classification
Name Survey Docking Society
- ----- ------------ --------- --------------

Alex Stream August 2001 August 2001 Bureau Veritas
Fighting Lady December 2002 December 2002 Bureau Veritas
Almar I March 2004 April 2003 Bureau Veritas
Petalis June 2005 June 2003 Bureau Veritas
Lucky Lady July 2005 June 2003 Bureau Veritas
Holy Island May 2004 April 2002 American Bureau
of Shipping

Insurance and Safety

The business of the Company is affected by a number of risks,
including mechanical failure of the vessels, collisions, property

loss to the vessels, cargo loss or damage and business
interruption due to political circumstances in foreign countries,
hostilities and labour strikes. In addition, the operation of any
ocean-going vessel is subject to the inherent possibility of
catastrophic marine disaster, including oil spills and other
environmental mishaps, and the liabilities arising from owning
and operating vessels in international trade. OPA, by imposing
potentially unlimited liability upon owners, operators and
bareboat charterers for certain oil pollution accidents in the
U.S., has made liability insurance more expensive for ship owners
and operators and has also caused insurers to consider reducing
available liability coverage.

The Company maintains hull and machinery and war risks
insurance, which will include the risk of actual or constructive
total loss, and protection and indemnity insurance with mutual
assurance associations. The Company does not carry insurance
covering the loss of revenue resulting from vessel off-hire time.
The Company believes that its insurance coverage is adequate to
protect it against most accident-related risks involved in the
conduct of its business and that it maintains appropriate levels
of environmental damage and pollution insurance coverage.
Currently, the available amount of coverage for pollution is $1.0
billion for tankers and dry bulk carriers per vessel per
incident. However, there can be no assurance that all risks are
adequately insured against, that any particular claim will be
paid or that the Company will be able to procure adequate
insurance coverage at commercially reasonable rates.

Recent Developments

On January 18, 2001 the Company obtained a bank loan of
Danish Kroner 125 million to refinance the holding of 454,800
shares Torm.

On March 29, 2001 the Company acquired a further 250 shares
of Torm.

On March 31, 2001 the Company agreed to acquire the shares of
Maryville Maritime Inc. ('Maryville'), a ship management company
(established under the laws of Liberia).

Organizational Structure

We are the parent company (100% owner) of the following
wholly-owned subsidiaries:

Subsidiary Place of Incorporation

Maryville Maritime Inc. Liberia
American Investors Co. Liberia
Point Holdings Inc. (1) Liberia

(1) Point Holdings Inc. is the parent company (100% owner)
of six Liberian holding companies, each of which owns one single-
ship owning company, five of which are Cypriot, and one of which
is Maltese.

ITEM 5 - OPERATING AND FINANCIAL REVIEW AND PROSPECTS

MANAGEMENT' S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

The following discussion and analysis should be read in
conjunction with the "Selected Historical Financial Data" set
forth above and the combined Financial Statements and the notes
thereto.

Revenues from vessels

Gross revenues from vessels consist primarily of (i) hire
earned under time charter contracts, where charterers pay a fixed
daily hire or (ii) amounts earned under voyage charter contracts,
where charterers pay a fixed amount per ton of cargo carried.
Gross revenues are also affected by the proportion between voyage
and time charters, since voyage freights are higher than
equivalent time charter hire, as they include all costs relating
to a given voyage, including port expenses, canal dues and fuel
(bunker) costs. Accordingly, year-to-year comparisons of gross
revenues are not necessarily indicative of the Trading Fleet's
performance. The time charter equivalent per vessel ("TCE"),
which is defined below as gross revenue per day less commissions
and voyage costs provides a more accurate measure for comparison.

Investment Income

The Company's investment income is equal to Torm's profits
for the year 2000 in relation to the Company's participation of
24.99% as of December 31, 2000.

Expenses

Voyage Expenses

Voyage expenses consist of all costs relating to a given
voyage, including port expenses, canal dues and fuel (bunker)
costs. Under voyage charters, the owner of the vessel pays such
expenses whereas under time charters the charterer pays such
expenses. Therefore, voyage expenses can exhibit significant
fluctuations from period to period depending on the type of
charter arrangement.

Vessel Operating Expenses

Vessel operating expenses consist primarily of crewing,
repairs and maintenance, lubricants, victualling, stores and
spares and insurance expenses. The Company is responsible for all
vessels operating expenses in voyage, time and period charters.

Depreciation

Vessels, including the acquisition related costs, are
depreciated on a straight line over an estimated economic life of
30 years for tankers and 28 years for dry bulk carriers (from the
date of construction of each vessel). Vessels are depreciated to
an estimated scrap value calculated at $120 per lightweight ton.

Amortisation of Dry-docking and Special Survey Costs

Dry-docking and special surveys are carried out approximately
every two and a half years and five years, respectively. Dry-
docking and special surveys costs are deferred and amortised over
two and a half years and five years, respectively.

Management Fees

Management fees consist of fixed management fees per vessel
per month charged by Maryville for managing the vessels.

Results of Operations

Fiscal Year ended December 31, 2000 Compared to Fiscal Year ended
December 31, 1999

Revenues from Vessels

Gross revenues (before deduction of broker's commissions and
voyage expenses) were US$32.2 million in 2000 compared to US$19.6
million in 1999 an increase of US$12.6 million or 64.3%. This
increase was primarily attributable to a 51.6% increase in the
average fleet TCE rate from US$5,820 in 1999 to US$8,823 in 2000

plus an increase of 20.6% in the total number of fleet operating
days from 1,921 in 1999 to 2,317 in 2000.

Investment Income

The Company's investment income of $8.4 million is derived
from Torm's profits for the year 2000 of DKK 281.5 million
multiplied by the Company's participation of 24,99% and
translated into US Dollars.

Voyage Expenses

Voyage Expenses were US$10.2 million in 2000, an increase of
US$2.8 million or 37.3% compared to US$7.4 million in 1999. This
increase was attributable to the higher realised revenues and an
increase in fleet operating days.

Vessel Operating Expenses

Vessel Operating Expenses were US$9.1 million in 2000
compared to US$6.7 million in 1999 an increase of US$2.4 million
or 35.8%. As a percentage of net revenue, operating expenses
decreased down to 29.5% in 2000 versus 35.8% in 1999. The average
daily operating expenses per vessel increased by 5.8% from
US$3,407 in 1999 to US$3,600 in 2000. This increase is primarily
attributable to higher operating expenses associated with the
Company's three larger size vessels.

Depreciation and Amortisation

The Depreciation charge for 2000 was US$1.3 million compared
to US$0.6 million in 1999. The increase is due to full year
depreciation charges for the year 2000 (except for Evan, which
was sold in November 2, 2000) versus less than full year
depreciation charges in 1999 as all the fleet vessels were
acquired between March and June 1999. No depreciation charges
were made for the vessels Lucky Lady, Evan or Holy Island as
their acquisition cost approximates their estimated salvage
value.

General and Administrative Expenses

General and Administrative expenses for 2000 were US$1.3
million compared to US$1.2 million in 1999. The increase of
US$0.1 million was a result of higher fleet operating days.

Other Income/Expenses

Other Expenses during 2000 totalled US$2.3 million, being the
net result of US$2.8 million interest and finance costs plus the
gain of US$0.3 million from the sale of Evan plus US$0.2 million

of foreign currency gains and other net income/expense items,
compared to a total of other expenses in 1999 of US$0.8 million
including a US$0.6 million loss from vessel sales and US$0.3
million in interest and financing costs.

Fiscal Year ended December 31, 1999 Compared to Fiscal Year ended
December 31, 1998

Revenues from Vessels

Gross revenues (before deduction of broker's commissions and
voyage expenses) were US$19.6 million in 1999 compared to US$7.9
million in 1998 an increase of US$11.7 million or 148.1%. This
increase was primarily attributable to an increase in the total
number of fleet operating days from 941 during 1998 to 1921 in
1999, plus an increase in the average fleet TCE rate from
US$5,180 in 1998 to US$5,820 in 1999.

Voyage Expenses

Voyage Expenses were US$7.4 million in 1999, an increase of
US$4.7 million or 174% compared to US$2.7 million in 1998. This
increase was attributable to higher revenues and an increase in
fleet operating days.

Vessel Operating Expenses

Vessel Operating Expenses were US$6.7 million in 1999
compared to US$3.3 million in 1998 an increase of US$3.4 million
or 103%. As a percentage of net revenue, operating expenses
decreased from 35.8% in 1999 compared to 43.8% in 1998. Average
daily operating expenses per vessel in 1999 were US$3,407
compared to US$3,505 in 1998. The decrease was primarily due to
the reduction in average dwt per vessel from 110,991 dwt in 1998
to 71,815 dwt in 1999.

Depreciation and Amortisation

The Depreciation charge for 1999 was US$0.6 million compared
to US$1.3 million in 1998. The decrease was due to the sale of
Santa Maria in addition to the fact that no depreciation charge
was made for the vessels Lucky Lady, Evan or Holy Island as their
acquisition cost approximates their estimated salvage value.

General and Administrative Expenses

General and Administrative expenses for 1999 were US$1.2
million compared to US$1.0 million in 1998. The increase of
US$0.2 million was a result of higher fleet operating days.

Other Income/Expenses

Other Expenses during 1999 totalled US$0.8 million, including
a US$0.6 million loss from vessel sales and US$0.3 million in
interest and financing costs compared to a total of other
expenses in 1998 of US$12.27 million, which consisted of a
US$11.5 million loss on the sale of vessels and US$0.76 million
in interest and financing costs.

Fiscal Year ended December 31, 1998 Compared to Fiscal Year ended
December 31, 1997

As the Company did not operate during 1997, no comparative
data for 1997 is available.

Revenues from Vessels

Gross revenues (before deduction of broker's commissions and
voyage expenses) were US$7.9 million in 1998. The total number of
operating days of the fleet was 941 during 1998, commencing on
May 29th when the first vessel was bought and ending on December
15th when all vessels were sold. TCE per vessel in 1998 was
US$5,180.

Voyage Expenses

Voyage Expenses were US$2.65 million in 1998.

Vessel Operating Expenses

Vessel Operating Expenses were US$3.3 million in 1998.
Average daily operating expenses per vessel in 1998 were
US$3,505.

Depreciation and Amortisation

Total depreciation and amortisation expenses for 1998 were
US$1.3 million.

General and Administrative Expenses

General and Administrative expenses for 1998 amounted to
US$0.98 million. The fee charged by Excel Management for managing
the vessels was US$0.44 million. US$0.54 million is attributable
mainly to general corporate expenses, legal fees, audit fees and
consultancy fees incurred by the Company during 1998 in
connection with an aborted exploration of the feasibility of
raising debt-capital in the US, which was exploration was
terminated due to the adverse capital market conditions following
Russia's default on its sovereign debt obligations during the
second half of the year.

Other Income/Expenses

Other Expenses during 1998 totalled US$12.27 million and
consisted of a US$11.5 million loss on the sale of the vessels
and US$0.76 million in interest and financing costs.

Fiscal Year ended December 31, 1997 Compared to Fiscal Year ended
December 31, 1996

As the Company did not operate during 1997, no comparative
data for 1997 is available.

During 1997, an existing management agreement with B+H
Management was terminated in consideration of US$275,000.

Liquidity and Capital Resources

The Company operates in a capital-intensive industry, which
requires extensive investment in revenue-producing assets. The
liquidity requirements of the Company relate to servicing its
debt, funding investments in vessels, funding working capital and
maintaining cash reserves. Net cash flow generated by operations
has historically been the main source of liquidity. Additional
sources of liquidity also include proceeds from assets sales,
bank indebtedness and equity contribution.

The Company believes that based upon current levels of
operation, cash flow operations, together with other sources of
funds (principally in the form of either debt or equity
financing), it will have adequate liquidity to make required
payments or principal and interest on the Company's debt and fund
working capital requirements.

Operating Activities

The net cash generated from operating activities in 2000
totalled US$8.0 million, approximately US$4.2 million more in
comparison to cash generated from operating activities of US$3.8
million in 1999. This was the result of US$13.4 million increase
in net income, less US$8.4 million increase of unrealised
investment income, less US$0.9 million reduction in losses from
sale of vessels.

Investing Activities

The net cash used in Investing Activities totalled US$23.8
million in 2000, compared to US$17.8 million in 1999. The
increase of approximately US$6.0 million consists of the US$23.5
million increase for payments for investments into affiliates
(Torm), plus an increase of US$1.4 million in payments for
drydocking and special survey costs, plus a reduction of US$1.4

million from the proceeds from the sale of vessels, offset by
US$20 million reduction in vessel acquisitions and purchase of
vessel owning companies and an increase of US$0.3 million of
interest received.

Financing Activities

The net cash generated from financing activities in 2000
totalled US$11.1 million compared to US$13.9 million in 1999. The
reasons for the decrease of US$2.8 million were US$11.3 million
of increases (net of payments/repayments) of proceeds from long
term debt, less US$2.8 million decreases of sellers loans, less
US$2.8 million increases in repayment of sellers loan, less
US$1.5 million of increases in payment of sellers credit, less
US$1.3 million of increase in financing costs and less US$5.7
million of reduction in issuance of capital stock.

DESCRIPTION OF PROPERTY

The Company has no leasehold or freehold interest in any real
property.

ITEM 6 - DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

MANAGEMENT

Executive Officers, Directors and Consultants

The following table sets forth the name, age and position within
the Company of each of its executive Directors and consultants.
Consultants are appointed to time, are not executive officers and
do not make decisions for the Company.

Name Age Position
------ --- --------

Gabriel Panayotides 46 Chairman, President, Chief
Executive Officer and
Class B Director
George Agadakis 48 Vice President, Chief
Operating Officer and
Class B Director
Christopher J. Thomas 41 Class B Director/Chief
Financial Officer and
Treasurer
Loukis Papaphillippou 65 Class A Director
Gregory J. Timagenis 56 Class A Director
Trevor J. Williams 58 Class A Director
Georgina E. Sousa 51 Secretary

The Board of Directors currently consists of six persons.

Gabriel Panayotides has been President, Chief Executive Officer
and a Director of the Company since October 1997 and Chairman
since February 1998. He has participated in the ownership and
management of ocean going vessels since 1978 and has been head of
operations of Maryville since July 1983. He is also a member of
the Greek Committee of Bureau Veritas, an international
classification society. He holds a Bachelors degree from the
Piraeus University of Economics.

George Agadakis has been Vice President and a Director of the
Company since November 1997. He was General Manager of Maryville
since January 1992. From 1983 to 1992 he served as Insurance and
Claims Manager for Maryville. He has held positions as Insurance
and Claims Manager and as a consultant with three other shipping
companies since 1976. He holds diplomas in shipping from the
Business Centre of Athens and the London School of Foreign Trade
Ltd.

Christopher J. Thomas joined the Company in September 1999 as
Chief Financial Officer. Mr. Thomas was elected as Class B
director by the Board of directors'. He holds a Masters degree in
Business Administration from Crawley University, England, and,
prior to joining the Company from 1994 he was Financial Manager
of Cardiff Marine Inc.

Loukis Papaphillippou has been a Director of the Company since
October 1997 and has been the chief legal executive of L
Papaphillippou & Co., a leading law firm in Cyprus since July
1963. He has been Vice President of Minerva Insurance since
January 1978 and President of Antenna TV Ltd. and Antenna FM
Ltd., two leading Cypriot broadcasting networks, since December
1989 and December 1995, respectively.

Gregory J. Timagenis has been a Director of the Company since
August 1998 and is a member of the Law Office of Gr. J.
Timagenis, the Company's Greek counsel. He holds a law degree and
a Masters degree in economics and political sciences from the
University of Athens. He was also awarded an L.L.M. and a Ph.D.
by the University of London. He was admitted to the Piraeus Bar
Association in 1971, and, since 1981, he has been qualified to
practice before the Supreme Court of Greece. He has taught legal
courses at the University of Athens and the Greek Naval Academy
in addition to having written several books and articles.

Trevor J. Williams has been a Director of the Company since
November 1988 and has been principally engaged as President and
Director of Consolidated Services Limited, a Bermuda-based firm
providing management services to the shipping industry since
1985.

Georgina E. Sousa has been Secretary of the Company since
February 1998. She joined the Bermuda law firm of Cos & Wilkinson
in 1982 as Senior Company Secretary and served in that capacity
until 1993 when she joined Consolidated Services Limited as
Manager of Corporate Administration, which position she currently
holds. From 1976 to 1982, Ms. Sousa was employed as Company
Secretary by the Bermuda law firm of Appleby, Spurling & Kemp.
She acts as Company Secretary of several private companies and of
Chemgas Ltd. and Resource Financing and Investment Ltd.

Compensation of Directors and Officers

The Company does not pay salaries or provide other direct
compensation to its executive officers including those who serve
as Directors of the Company. For the year ended December 31,
2000, the Company paid aggregate Directors fees and secretarial
fees of US$48,391.

No family relationships exist among any of the executive
officers and Directors.

Board Practices

Each Director is elected for a two-year term. Class A
Directors will serve until the 2002 annual meeting. Class B
Directors will serve until the 2001 annual meeting. Officers are
appointed by the Board of Directors and serve until their
successors are appointed and qualified.

Mr. Christopher J. Thomas has served as Class B Director
since 20 June 2000, after the former Class B director, Mr. T.
Baltazis resigned on 16 June 2000. Mr. Thomas' term ends in 2001
along with all other Class B Director's term.

Employees

We did not have any employees for the years 1998, 1999 and
2000. We contract with independent ship managers to manage and
operate our vessels, and a management company to handle our
administrative needs.

Share Ownership

The beneficial interest of our directors and officers in our
Common Shares as of June 25, 2001, was as follows:

Percentage of
Director or Officer Common Shares Shares Outstanding
- ------------------ ------------- ------------------

George Agadakis (1) * *

(1) Mr. Agadakis beneficially owns less than one percent of our
Common Shares. None of our other directors or officers own any
Common Shares.

ITEM 7 - MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

OWNERSHIP OF THE COMPANY

The following table sets forth, as of December 6, 2000, certain
information regarding the current ownership of the Company's
outstanding voting securities, the Common Shares, by each person
known by the Company to be the owner of more than 5% of such
securities and all the Directors and senior management as a
group.

Name Number of Common Shares Percent of Class
- ---- ----------------------- ----------------

Vilpa Investments S.A. (a) 5,509,165 47.45%

(Common shares 5,454,620 and Class B common shares 54,545)

As a group, the Directors and executive officers of the
Company own 5,574,916 Common Shares or 48.01% of the Common
Shares outstanding.

(a) Vilpa is a Liberian corporation owned indirectly by
members of the family of Gabriel Panayotides, the
Chairman, President and Chief Executive Officer of the
Company. By virtue of his voting power and power of
disposition over the Common Shares of the Company owned
by Vilpa, Mr. Panayotides may be deemed the beneficial
owner of such shares for purposes of Rule 13d-3 under
the Exchange Act. Mr. Panayotides disclaims beneficial
ownership of these securities for any other purpose.

Related party transactions

Excel Management

The Company's management is conducted by and through Excel
Management, an affiliate of the Company. On April 30th 1998,
Excel Management and the Company entered into the Management
Agreement, pursuant to which Excel Management is paid a fee of
US$13,000 per month in respect of each vessel owned by the
Company in addition to an annual fee of US$50,000 for general
corporate and clerical management services. The fees charged by
the Manager in 1998, 1999, and 2000 totalled US$0.4, US$1.0 and

US$1.2 million respectively as separately reflected in the
accompanying consolidated statements of income (loss)

Maryville

On April 30, 1998, Excel Management and Maryville entered
into the Sub-management Agreement under which Excel Management
procures certain technical and commercial management services for
the vessels of the Trading Fleet from Maryville. Pursuant to the
Sub-management Agreement, the Company pays Maryville a fee of
$11,000 per month per vessel under management plus a commission
for advice on chartering and purchase and sale transactions. On
March 31st 2001, the Company agreed to acquire the entire share
capital of Maryville. Mr. Agadakis is the Shipping Director of
Maryville.

During the fiscal years ended December 31, 2000, Maryville
was paid fees of $924,000 for commercial and technical management
services in respect of the vessels. Maryville currently manages 5
vessels other than those of the Company and is not restricted in
the number or ownership of vessels it may manage. Maryville has
advised the Company that it gives no priority or preference to
any of the vessels under its management.

Other

L Papaphillippou & Co. serves as Cypriot counsel to the
Company and has received fees in the past for legal services. L.
Papaphillippou & Co. will continue to receive such fees for the
provision of such services, when rendered, in the future. Loukis
Papaphillippou, a Director of the Company and member of the Audit
Committee, is a member of L. Papaphillippou & Co.

The Law Office of Gr. J. Timagenis serves as Greek counsel to
the Company and has received fees in the past for legal services.
The Law Office of Gr. J. Timagenis will continue to receive such
fees for the provision of such services, when rendered, in the
future. Gregory J. Timagenis, a Director of the Company and
member of the Audit Committee, is a member of the Law Office of
Gr. J. Timagenis.

ITEM 8 - FINANCIAL STATEMENTS

Consolidated Statements and Other Financial Information

See Item 18.

Legal Proceedings

There are currently no material legal proceedings, actions or
claims pending against the Company. The nature of the company's
business exposes it to the risk of lawsuits for damages or
penalties relating to, among other things, personal injury,
property casualty and environmental contamination.

ITEM 9 - THE OFFER AND LISTING

The primary trading market for the Common Shares is the
American Stock Exchange (the "AMEX"), on which the Common Shares
are listed under the symbol "EXM."

The high and low closing prices for the common shares, by
quarter, in 1998, 1999, 2000 and 2001 were as follows:

For The Quarter Ended AMEX Low (US$) AMEX High (US$)
- --------------------- -------------- ---------------

March 31, 1998 Not Available Not Available
June 30, 1998 2.6250 4.2500
September 30, 1998 2.3750 3.8750
December 31, 1998 1.2500 3.5000
March 31, 1999 1.5000 1.7500
June 30, 1999 1.1250 1.1250
September 30, 1999 1.0000 1.3750
December 31, 1999 1.2500 2.8750
March 31, 2000 1.7500 2.0000
June 30, 2000 1.6250 1.7500
September 30, 2000 2.0000 2.0625
December 31, 2000 2.1875 2.1875
March 31, 2001 2.8500 3.125

(a) The stock was not listed from December 1996 until May 1998.

On December 31, 2000, the closing price of the Common Shares
as quoted on the AMEX was US$2.85. On such date, there were
11,611,115 Common Shares issued and outstanding.

ITEM 10 - ADDITIONAL INFORMATION

Articles of Incorporation

The Company's Amended and Restated Articles of Incorporation
provide that the Company is to engage in any lawful act or
activity for which companies may now or hereafter be organised
under the Liberian Business Corporation Act, as specifically but
not exclusively outlined in Article THIRD of the Company's
Articles of Incorporation.

Directors

The Board of Directors of the Company consists of six
directors, three Class A and three Class B. Shareholders may only
change the number of directors or quorum requirements for
meetings of the board by the affirmative vote of the holders of
shares representing at least two-thirds of the total number of
votes which may be cast at any meeting of shareholders. The
original Class A directors were to serve until the annual meeting
of shareholders in 2000 and the qualification of their
successors. The Class A directors were re-elected at the annual
meeting in 2000 and will serve to 2002. The Class B directors are
to serve until the annual meeting of shareholders in 2001. At
each annual meeting of shareholders, the successors of the Class
of directors whose term expires at such meeting shall be elected
to hold office for a term expiring as of the second succeeding
annual meeting.

There are two Classes of Common Shares of the Company. The
holders of Class A shares are entitled to one vote per share on
each matter requiring the approval of shareholders and the
holders of Class B shares are entitled to 1,000 votes per share
on each matter requiring the shareholders' approval. Holders of
both Classes of shares shall vote as a single Class on all such
matters. The Board of Directors shall have the fullest authority
permitted by law to provide by resolution for any voting powers,
designations, preferences and relative, participating, optional
or other rights of and any qualifications, limitations or
restrictions on the preferred stock of the company.

The Board of Directors is to fix the date and time of the
annual general meeting or other special meeting of shareholders
of the Company, after notice of such meeting is given to each
shareholder of record not less than 15 and not more than 60 days
before the date of such meeting. The presence in person or by
proxy of shareholders entitled to cast one-third of the total
number of votes shall constitute a quorum for the transaction of
business at any such meeting.

Taxation

The Company is incorporated in the Republic of Liberia. The
Company is not subject to income taxation under the laws of the
Republic of Liberia. There is no treaty relating to taxation
between the Republic of Liberia and the United States.

U.S. HOLDERS OF NOTES ARE URGED TO CONSULT THEIR OWN TAX ADVISORS
AS TO THE TAX CONSEQUENCES TO THEM OF THE ACQUISITION, OWNERSHIP
AND DISPOSITION OF SHARES, AS WELL AS ANY APPLICABLE FOREIGN,
STATE OR LOCAL TAX LAWS OR ESTATE OR GIFT TAX CONSIDERATIONS.

ITEM 11 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISKS

Foreign Currency Fluctuation

All of the trading fleet's revenues are in U.S. dollars.
Approximately 90% of the Trading Fleet's total expenses are paid
in U.S. dollars, with the remaining 10% being paid in Greek
drachmas. The Company does not hedge its exposure to foreign
currency fluctuation. For accounting purposes, expenses incurred
in Greek drachmas are translated into U.S. dollars at the
exchange rate prevailing on the date of each transaction.

Inflation

Although inflation has had a moderate impact on the Trading
Fleet's operating and voyage expenses in recent years, management
does not consider inflation to be a significant risk to operating
or voyage costs in the current economic environment. However, in
the event that inflation becomes a significant factor in the
global economy, inflationary pressures would result in increased
operating, voyage and financing costs.

ITEM 12 - DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

Not applicable

ITEM 13 - DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

None

ITEM 14 - MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY
HOLDERS AND USE OF PROCEEDS

None

ITEM 18 - FINANCIAL STATEMENTS

The following financial statements, together with the report
of Arthur Andersen, Independent Accountants, are filed as part of
this annual report:

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS F-1

REPORT OF ARTHUR ANDERSEN, INDEPENDENT ACCOUNTANTS F-2

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 1999, 2000 F-3

CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS
ENDED DECEMBER 31, 1998, 1999 AND 2000 F-4

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY FOR
THE YEARS ENDED DECEMBER 31, 1998, 1999 and 2000 F-5

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS
ENDED DECEMBER 31, 1999 AND 2000 F-6

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS F-7

ITEM 19. EXHIBITS

NUMBER DESCRIPTION OF EXHIBIT

1.1* Articles of Incorporation of the Company, incorporated
by reference to Exhibit 3.1 of the Company's
Registration Statement on Form F-1, Registration
No. 33-8712 filed on May 6, 1998 (the "Registration
Statement").

1.2* Restated Articles of Incorporation of the Company,
adopted November 8, 1999, incorporated by reference to
Form 6-K filed on November 19, 1999.

1.3* Amended and Restated By-Laws of the Company adopted on
January 10, 2000, incorporated by reference to Exhibit
1.0 of the Form 6-K filed on January 20, 2000.

2.1* Specimen Common Stock Certificate, incorporated by
reference to Exhibit 4.2 of the Registration Statement.

8.1* Subsidiaries of the Company incorporated by reference to
Exhibit 21.1 of the Registration Statement.

* Incorporated herein by reference.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Report of Arthur Andersen, Independent Accountants F-2

Consolidated Balance Sheets December 31, 1999, 2000 F-3

Consolidated Statements of Operations for the Years
ended December 31, 1998, 1999 and 2000 F-4

Consolidated Statements of Stockholders' Equity for
the Years ended December 31, 1998, 1999 and 2000 F-5

Consolidated Statements of Cash Flows for the Years
ended December 31, 1998, 1999 and 2000 F-6

Notes to Consolidated Financial Statements F-7

F-1

ARTHUR ANDERSEN

REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

TO:
EXCEL MARITIME CARRIERS LTD.

We have audited the accompanying consolidated balance sheets of
EXCEL MARITIME CARRIERS LTD. and subsidiaries, (''Company'') as
of December 31, 1999 and 2000, and the related consolidated
statements of operations, stockholders' equity and cash flows for
each of the three years in the period ended December 31, 2000.
These financial statements are the responsibility of the
Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.

We conducted our audits in accordance with United States
generally accepted auditing standards. Those standards require
that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position
of EXCEL MARITIME CARRIERS LTD. and subsidiaries as of December
31, 1999 and 2000 and the results of their operations and their
cash flows for each of the three years in the period ended
December 31, 2000, in conformity with United States generally
accepted accounting principles.

/s/ Arthur Andersen
Athens, Greece,
March 31, 2001

F-2

EXCEL MARITIME CARRIERS LTD
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1999 AND 2000
Expressed in thousands of U.S. Dollars - except per share data)

ASSETS 1999 2000
CURRENT ASSETS:
Cash and cash equivalents
(Note 2d) $5.698 $1.019
Accounts receivable-
Trade (Note 2e) 2.122 2.483
Other 68 89
--------- -------
2.190 2.572
Management company (Note 1) 0 268
Due from affiliated companies
(Notes 1 and 3) 0
Inventories (Note 2g) 752 784
Prepayments and other 161 378
--------- -------
Total current assets 8.801 5.021

FIXED ASSETS:
Vessels' cost (Notes 2h and 3) 18.906 18.203
Accumulated depreciation
(Notes 2h and 3) -512 -1.299
--------- -------
Net Book Value 18.394 16.904
Total fixed assets 18.394 16.904

OTHER NON CURRENT ASSETS:

Investments in affiliates
(Note 2j and 5) 0 32.189
Deferred charges, net of
amortization of $84 and $262,
at December 31, 1999 and 2000,
respectively (Notes 2k and 4) 275 2.120
Total assets $27.470 $56.234
======== =======

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Short-term borrowings $84 $0
Current maturities of long-term
debt (Note 6)
Bank loans 5.450 3.256
Other loan 0 7.250
Sellers credit 500 500
Sellers loan 2.100 0

F-3

------ ------
8.050 11.006
Accounts payable-
Trade 2.287 2.516
Other 116 432
------ ------
2.403 2.948
Management company (Note 1) 66 0
Unearned revenue (Note 2n) 103 141
Accrued bank interest (Note 6) 96 698
Accrued liabilities 715 448
Total current liabilities 11.517 15.241

LONG-TERM DEBT, net of current maturities (Note 6)
Bank loan 0 11.754
Sellers credit 1.500 0
Sellers loan 700 0
------ ------
2.200 11.754
CONTINGENCIES (Note 12)
STOCKHOLDERS' EQUITY:
Preferred Stock, $0.01 par value;
5,000,000 shares authorised,
none issued. - -
Common Stock, $0.01 par value;
50,000,000 shares authorised;
11,611,099, issued and outstanding
at December 31, 1999 and 2000,
respectively (Notes 7 and 11). 116 116
Paid-in capital (Note 8) 12.086 12.086
Accumulated other comprehensive
income/(loss) (Note 2c) - 311
Retained earnings (Note 8) 1.551 16.726
------ ------
Total stockholders' equity 13.753 29.239
Total liabilities and
stockholders' equity 27.470 $56.234
====== ======

The accompanying notes are an integral part of these consolidated balance
sheets.

F-4

EXCEL MARITIME CARRIERS
CONSOLIDATED STATEMENT OF INCOME (LOSS)
FOR THE YEARS ENDED DECEMBER 31, 1998, 1999, AND 2000
(Expressed in thousands of U.S. Dollars - except per share data)

1998 1999 2000
REVENUES:
Revenue from vessels (Notes 1 and 2n) $7.883 $19.566 $32.204
Commissions (Note 2n) -358 -949 -1.544
------ ------ ------
Revenue from vessels, net 7.525 18.617 30.660

Investment income (Note 2j) 0 0 8.417

Revenue from operations 7.525 18.617 39.077
------ ------ ------
EXPENSES:
Operating expenses
Voyage expenses (Note 2n) 2.651 7.439 10.215
Vessel operating expenses
(Notes 2n, 2o, and 10) 3.298 6.670 9.058
Depreciation and amortization
(Notes 2h, 2k, 3 and 4) 1.310 624 932
General and administrative expenses
Management fees (Note 1) 436 1.012 1.181
Other (Note 1) 543 205 166
------ ------ ------
8.238 15.950 21.552
------ ------ ------
Income (loss) from operations -713 2.667 17.525

OTHER INCOME (EXPENSES):
Interest and finance costs, net
(Notes 4 and 6) -759 -307 -2.826
Gain (Loss) on sale of vessels (Note 9) -11.508 -574 289
Foreign currency gains (losses) (Note 2c) -7 -13 25
Other, net 3 51 162
------ ------ ------
Total other income (expenses), net -12.271 -843 -2.350

Net Income (loss) $-12.984 $1.824 $15.175
======= ====== =======

Basic earnings (loss) per share $-3,07 $0,23 $1,31
======= ====== ======
Basic weighted average numbers
of shares 4.233.738 7.953.947 11.611.099
========= ========= ==========

The accompanying notes are an integral part of these consolidated statements.

F-5

EXCEL MARITIME CARRIERS
CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY
FOR THE YEARS ENDED DECEMBER 31, 1998, 1999, AND 2000
(Expressed in thousands of U.S. Dollars - except per share data)

Accumulated
Capital Stock Retained Other
Comprehensive Class A Class B Paid-In Earnings Comprehensive
Income Shares Shares Total Capital (Deficit) Income/(Loss) Total
------------ ---------------- ------- -------- -------- ------------ ------

BALANCE, December 31, 1997 2 0 2 37.119 -37.259 - -138

1998 net loss -12.984 - - - - -12,984 - -12.984

Additions to paid-in
capital - - - - 138 - - 138

Issuance of 6,350,000
common shares,
par value $0.01 at
$ 3.15 - 64 - 64 19.939 - - 20.003

Capital issuance expenses - - - -697 - - - -697

Comprehensive Income -------
(loss) -12.984
=======

BALANCE,
December 31, 1998 - 66 0 66 56.499 -50.243 - 6.322

Quasi reorganization -50.243 50.243 - 0

1999 net income 1.824 - - - - 1.824 - 1.824

Issuance of 4,924,347
common shares, par value
$0.01 at $ 1.15 - 49 - 49 5.614 - - 5.633

Capital issuance expenses - - - - .56 - - -56

Issuance of 114,946 common
shares, par value $0.01
given as share dividend - - 1 1 272 -273 - 0
------
Comprehensive Income 1.824 -
======

F-6

BALANCE,
December 31, 1999 115 1 116 12.086 1.551 13.753
2000 net income 15.175 - - - - 15.175 - 15.175

Currency translation
adjustments 311 - - - - - - 311
-----
Comprehensive Income 15.486
====== ----- ----- ----- ------ ------ ----- -------

BALANCE,
December 31, 2000 $115 $1 $116 $12.086 $16.726 $311 $29.239
====== ===== ===== ======= ======= ==== =======

The accompanying notes are an integral part of these consolidated statements.

F-7

EXCEL MARITIME CARRIERS
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 1998, 1999, AND 2000
(Expressed in thousands of U.S. Dollars - except per share data)

1998 1999 2000

Cash Flows from Operating Activities:
Net income (loss $-12.984 $1.824 $15.175
Adjustments to reconcile net
income (loss) to net cash provided
by operating activities:
Unrealized investment income 0 0 -8.417
Depreciation and amortization 1.329 642 2.020
(Gain) Loss on sale of vessels 11.508 574 -289
Interest expense 817 448 2.177
Interest income -83 -141 -489

(Increase) Decrease in:
Accounts receivable -507 -1.666 -382
Inventories -139 -534 -32
Management company -1.000 1.066 -334
Prepayments and other 0 -161 -193
Increase (Decrease) in:
Accounts payable 933 1.470 545
Accrued liabilities 53 524 -267
Unearned revenue 0 103 38
Interest paid -817 -352 -1.575
------ ------ ------

Net Cash from (used in)
Operating Activities -890 3.797 7.977

Cash Flows from Investing Activities:
Vessel acquisitions and/or improvements -38.000 -14.391 0
Payments for purchase of four vessel
owning companies, net of cash acquired 0 -5.594 0
Proceeds from sale of vessels, net 5.365 2.380 992
Payments for dry docking and special
survey costs 0 -334 -1.773
Payment for investments in affiliates 0 0 -23.461
Interest received 66 141 465
------ ------ ------
Net Cash used in Investing Activities -12.569 -17.798 -23.777

Cash Flows from Financing Activities:
Net change in short-term borrowings 0 84 -84
Proceeds from long-term debt 23.000 6.000 52.505
Proceeds from sellers loan 0 2.800 0
Repayment of sellers loan 0 0 -2.800

F-8

Payment of long-term debt -1.000 -550 0
Payment of sellers credit 0 0 1.500
Repayment of long-term debt -22.000 0 -35.695
Additions to paid-in capita 138 0 0
Issuance of capital stock 20.003 5.663 0
Capital issuance expenses -697 -56 0
Financing costs -202 -25 -1.305
------ ------ ------
Net Cash from Financing Activities 19.242 13.916 11.121

Net increase (decrease) in cash and
cash equivalents 5.783 -85 -4.679
Cash and cash equivalents at
beginning of year 0 5.783 5.698
------ ------ ------
Cash and cash equivalents at end of year $5.783 $5.698 $1.019
====== ====== ======

F-9

1. BASIS OF PRESENTATION AND GENERAL INFORMATION:

The accompanying consolidated financial statements include the accounts of
Excel Maritime Carriers Ltd., a Liberian corporation, and its wholly owned
subsidiaries (Note 2a).

During 1999 Excel Maritime Carriers Ltd., through its wholly owned
subsidiary Point Holdings Ltd., entered into a series of memoranda of
agreement and gradually purchased four vessels, and another four vessels
by acquiring the holding companies of the companies owning the vessels,
all with delivery dates up to the end of June 1999. One of these vessels
was sold in December 1999 and another one was sold in November 2000 (Note
2a).

During 2000 the Company acquired through the stock exchange a
participation interest of 24.99%, in A/S Dampshkibsselskabet Torm
("Torm"), a shipowning and operating company which is listed in the
Copenhagen Stock Exchange (Note 5).

The operations of the vessels are managed by Excel Management Ltd., an
affiliated Liberian corporation formed on January 13, 1998. The management
company ('the Manager'), which is not included in the accompanying
consolidated financial statements, has an office in Greece, established
under the provisions of Law 89 of 1967, as amended, and offers to Company
vessels a wide range of shipping services. Such services include
technical support and maintenance, supervision of new buildings, insurance
consulting, chartering, financial and accounting services all provided at
a fixed monthly fee per vessel, in accordance with accepted industry
standards.

The fees charged by the Manager in 1998, 1999 and 2000 totaled $ 436, $
1,012 and $ 1,181 respectively and are separately reflected in the
accompanying consolidated statements of income (loss).

Of the revenue from vessels in 2000 and 1999, 14.22% and 13.86%
respectively, derived from one charterer, while 79% in 1998 derived from
five charterers (11%, 13%, 14%, 17% and 24%).

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

(a) Principles of Consolidation: The accompanying consolidated financial
statements have been prepared in accordance with United States generally
accepted accounting principles. The December 31, 1998, 1999 and 2000
consolidated financial statements include the accounts of Excel Maritime
Carriers Ltd. (Note 1) and its wholly-owned subsidiaries American
Investors Co. a Liberian Corporation incorporated on March 2, 2000 (Note
5), and Point Holdings Ltd., a Liberian Corporation incorporated on
February 17, 1998, owner of the following vessel owning companies (all
registered in Cyprus with the exception of Fiorela Navigation Ltd. which
is registered in Malta):

F-10

Companies with vessels in operation at December 31, 2000:

Vessel's Vessel
Owning Company Name DWT LWT Acquired on
- ----------------- --------- ----- ----- ------------

1. Fiorella Navigation Ltd. Alex Stream 140,037 23,767 March 11, 1999
2. Becalm Shipping Co. Ltd. Fighting Lady 141,103 21,161 May 28, 1999
3. Tortola Shipping Co. Ltd. Lucky Lady 27,422 6,357 May 13, 1999
4. Storler Shipping Co. Ltd. Petalis 35,982 8,400 April 23, 1999
5. Arotra Shipping Co. Ltd. Holy Island 24,525 5,905 June 16, 1999
6. Madlex Shipping Co. Ltd Almar I 107,140 18,051 June 4, 1999
------- -------
476,209 83,641
======= =======

Company with vessel sold in the year ended December 31, 2000:

7. Acon Shipping Co. Ltd. Evan 26,499 6,555 April 6, 1999

Company with vessel sold in the year ended December 31, 1999:

8. Weaver Navigation Ltd. Santa Maria 130,341 21,722 March 11, 1999

Companies who acquired and sold their vessels during 1998:

Vessel's Vessel
Owning Company Name Acquired on
- ----------------- --------- ------------

9. Donex Shipping Co. Ltd. Erissos XL May 29, 1998
10. Lokman Shipping Co. Ltd. Topaz XL June 4, 1998
11. Parifi Shipping Co. Ltd. Ruby XL June 4, 1998
12. Demplomar Shipping Co. Ltd. Diamond XL June 18, 1998
13. Denlord Shipping Co. Ltd. Brilliant Sea XL June 25, 1998

On December 15, 1998, all five vessels were sold at a loss of
$11,508 (Note 9).

By an agreement dated March 2, 1999, Point Holdings Ltd.,
acquired 100% of the shares of Lario Shipping Ltd. (Lario) and
Port Shipping and Trading S.A. (Port), the holding companies of
Fiorella Navigation Ltd. (vessel Alex Stream) and Weaver
Navigation Ltd. (vessel Santa Maria), respectively. Lario and
Port are Liberian corporations and were affiliates (the capital
stock of Lario and Port was held by companies associated with a
group in which family members of the Company's chairman had a
minority interest) of the Company at the time of their purchase.
According to the agreement for the transfer of shares, the
Company acquired only the vessels, while all debts, claims and

F-11

receivables relating to periods prior to the delivery of the
vessels were for sellers' account.

The vessels Fighting Lady and Lucky Lady were acquired through
Memoranda of Agreement, concluded between the vessels previous
owners and the newly established 100% subsidiaries of Point
Holdings Ltd. (Becalm Shipping Co. Ltd. and Tortola Shipping Co.
Ltd.).

The vessels Petalis, Holy Island, Evan and Almar I, were acquired
through the purchase of all the outstanding shares of the
companies holding the capital stock of their vessel owning
companies (the shares were acquired by Point Holdings Ltd.). The
vessel owning companies acquired were established in the period
from July 3, 1998 to January 4, 1999, and as of the effective
date of the share purchase agreements, they had no material
activities other than the acquisition of their vessels.
Accordingly, if the Company had acquired these companies upon
their establishment, there would be no effect on the revenues and
net income for the year 1998. The consideration paid by the
Company was the issuance, in 1999, of 4,924,347 Class A common
shares at $ 1.15 per share (Note 7) which approximated the fair
value of the companies' net assets acquired. The acquisition has
been accounted for by the purchase method of accounting.

With the exception of Alex Stream (tanker vessel) which is under
the Malta flag all the other vessels (bulk carriers) are under
Cyprus flag. All significant inter-company balances and
transactions have been eliminated in the consolidation.

(b) Use of Estimates: The preparation of consolidated financial
statements in conformity with the United States generally
accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets
and liabilities at the date of the consolidated financial
statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ
from those estimates.
(c) Foreign Currency Translation - Other Comprehensive income:
The Company has adopted the provisions of Statement of
Financial Accounting Standards ''Statement of Comprehensive
Income'' (SFAS 130), which requires separate presentation of
certain transactions, which are recorded directly as
components of stockholders' equity.

The functional currency of the Company is the U.S. Dollar
because the Company's vessels operate in international
shipping markets, which utilize the U.S. Dollar as the
functional currency. The Company's books of accounts are
maintained in U.S. Dollars. Transactions involving other

F-12

currencies during the year are converted into U.S. Dollars
using the exchange rates in effect at the time of the
transactions. At the balance sheet dates, monetary assets
and liabilities, which are denominated in other currencies,
are translated to reflect the current exchange rates.
Resulting gains or losses are reflected separately in the
accompanying consolidated statements of income (loss). Year-
end translation losses or gains were insignificant.

The functional currency of A/S Dampskibsselskabet Torm
("Torm") the affiliate in which the Company has a
participation interest of 24.99% is the Danish Kroner. In
applying the equity method of accounting, the accounts of
Torm have been translated into U.S. dollars using the current
rate method. The resulting translation adjustment is
reflected separately, under stockholder's equity in the
accompanying 2000 consolidated balance sheet in accordance
with SFAS 130.

(d) Cash and Cash Equivalents: For purposes of the consolidated
statements of cash flows, the Company considers highly liquid
investments such as time deposits and certificates of deposit
with original maturity of three months or less to be cash
equivalents.

(e) Accounts Receivable - Trade: The amount shown as accounts
receivable - trade at each balance sheet date, includes
estimated recoveries from charterers for hire, freight and
demurrage billings.

(f) Insurance Claims: Insurance claims, consist of claims
submitted and/or claims being in the process of compilation
or submission (claims pending). They are recorded on the
accrual basis and represent the claimable expenses, net of
deductibles, incurred through December 31 of each year, which
are expected to be recovered from insurance companies. Any
remaining costs to complete the claims are included in
accrued liabilities. The classification of insurance claims
(if any) into current and non-current assets is based on
management's expectations as to their collection dates.

(g) Inventories: Inventories are stated at the lower of first-in,
first-out cost or market. The amounts in the accompanying
consolidated balance sheets are analyzed as follows:

F-13

1999 2000

Bunkers 507 601
Lubricants 207 160
Other 38 23
----- -----
752 784
===== =====

(h) Vessels Cost and Depreciation: Vessels are stated at cost,
which consists of the original purchase price and any
material expenses incurred upon acquisition. Subsequent
expenditures for conversions and major improvements are also
capitalized when they appreciably extend the life, increase
the earning capacity or improve the efficiency or safety of
the vessel; Otherwise they are charged to income as incurred.

Depreciation for vessels is computed using the straight-line
method over their estimated useful life (twenty-eight years
for bulker vessels and thirty years for tanker vessels). In
computing vessels' depreciation, the estimated salvage value
of the vessel ($ 0.120 per LWT - Note 2a) is also taken into
consideration.

(i) Impairment of Long-Lived Assets: The U.S. Financial
Accounting Standards Board issued SFAS 121 "Accounting for
the Impairment of Long-lived Assets and for Long-lived Assets
to be Disposed of", which requires that long-lived assets and
certain identifiable intangibles held and used or disposed of
by an entity be reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount of
the assets may not be recoverable. An impairment loss for an
asset held for use should be recognized, when the estimate of
undiscounted cash flows, excluding interest charges, expected
to be generated by the use of the asset is less than its
carrying amount. Measurement of the impairment loss is based
on the fair value of the asset. In this connection management
reviews regularly the vessels' operation and their cash flows
and believes that no material impairment loss exists that
needs to be recognized for applicable assets of continuing
operations.

(j) Accounting for investments: The Company's investment in Torm
(participation interest of 24.99%) is accounted for under the
equity method (Note 5).

(k) Deferred Charges: Deferred charges include the dry-docking
and special survey costs of the vessels and the financing
costs incurred for obtaining new loans or refinancing
existing ones. Dry-docking and special survey costs are
carried out approximately every two and a half years and five

F-14

years respectively, coinciding with the validity of the
related certificates issued by the Classification Societies.
Dry-docking costs are deferred and are amortized through the
next dry-docking dates. Special survey costs are deferred
and amortized over the period from the date incurred, through
the next special survey dates. Unamortized dry-docking and
special survey costs of vessels sold are written off to
income in the year of the vessels' sale. Financing costs are
deferred and amortized over the loans' repayment period.
Costs relating to loans repaid or refinanced are expensed in
the period the repayment or refinancing is made.

(l) Pension and Retirement Benefit Obligations - Crew: The ship-
owning companies included in the consolidation, employ the
crew on board, under short-term contracts (usually up to nine
months) and accordingly, they are not liable for any pension
or post retirement benefits.

(m) Collective Bargaining Agreements: Substantially all ship
crewmembers are subject to collective bargaining agreements.
Such agreements are usually expire within one year; however,
a continuation of acceptable labor relationships is expected.

(n) Accounting for Revenue and Expenses: Freight and hire revenue
and related voyage expenses as well as applicable address and
brokerage commissions are recorded on a pro rata basis over
the period of the voyage or time charters. Vessel operating
expenses are accounted for on the accrual basis. Unearned
revenue represents revenue applicable to periods after
December 31 of each year.

(o) Repairs and maintenance: All recurring repair and maintenance
expenses, including major overhauling and underwater
inspection expenses are charged against income in the period
incurred. Such costs, totaled $ 303, $ 1,018 and $ 2,298, for
1998, 1999 and 2000, respectively and are included in vessel
operating expenses in the accompanying consolidated
statements of income (loss).

(p) Earnings per Share: Basic earnings per share are computed by
dividing net income by the weighted average number of common
shares outstanding during the year. Diluted income per share
reflects the potential dilution that could occur if
securities or other contracts to issue common stock were
exercised. There were no dilative securities outstanding
during the years presented. All share and per share amounts
have been adjusted to give retroactive effect to the share
dividend discussed in Note 7.

(q) Segment Reporting: The Company reports financial information
and evaluates its operations by charter revenues and not by

F-15

the length of ship employment for its customers, i.e., spot
or time charters. The Company does not have discrete
financial information to evaluate the operating results for
each such type of charter. Although revenue can be identified
for these types of charters, management can not and does not
identify expenses, profitability or other financial
information for these charters. As a result, management,
including the chief operating decision makers, reviews
operating results solely by revenue per day and operating
results of the fleet and thus the Company has determined that
it operates under one reportable segment.

(r) Recently Issued Accounting Standard: In June 1998, the
Financial Accounting Standards Board issued SFAS No. 133,
"Accounting for Derivative Instruments and Hedging
Activities". SFAS No. 133 establishes accounting and
reporting standards requiring that every derivative
instrument (including certain derivative instruments embedded
in other contracts) be recorded on the balance sheet as
either an asset or liability measured at its fair value. It
also requires that changes in the derivative's fair value be
recognized currently in earnings unless specific hedge
accounting criteria are met. Special accounting for
qualifying hedges allows a derivative's gains and losses to
offset related results on the hedged item in the income
statement, and requires that a company must formally
document, designate, and assess the effectiveness of
transactions that receive hedge accounting. SFAS No. 138,
"Accounting for Certain Derivative Instruments and Certain
Hedging Activities" amended the accounting and recording
standards of SFAS No. 133 for certain derivative instruments
and certain hedging activities as indicated below.

SFAS No. 133, as amended by (a) SFAS No. 137 "Accounting for
Derivative Instruments and Hedging Activities - Deferral" as
of the effective date of FASB Statement No. 133 and (b) SFAS
138, is effective for fiscal years beginning after June 15,
2000 and cannot be applied retroactively. The Company has not
yet quantified the impacts of adopting SFAS No. 133 on its
financial statements and has not determined the timing or
method of adoption of SFAS No. 133. The management does not
expect that the adoption of SFAS 133, as amended, will have a
significant effect to the financial statements of the
Company.

F-16

3. VESSELS:

Accumulated
Vessel's Year Year of Cost Depreciation Net Book Value
Name Built Acquisition 1999 2000 1999 2000 1999 2000
- -------- ------ ----------- ------------- ------------- -------------

Alex
Stream 1975 March 1999 5,000 5,000 193 438 4,807 4,563
Fighting
Lady 1983 May 1999 7,526 7,526 231 627 7,295 6,899
Lucky
Lady 1975 May 1999 763 763 -- -- 763 763
Evan 1974 April 199 703 -- -- -- 703 --
Petalis 1975 April 1999 1,068 1,068 9 21 1,059 1,046
Holy
Island 1977 June 1999 526 526 -- -- 526 526
Almar I 1979 June 1999 3,320 3,320 79 213 3,241 3,107
----- ----- ----- ----- ----- -----
18,906 18,203 512 1,299 18,394 16,904

The vessel Santa Maria which was acquired on March 11, 1999
for $ 3,000 (the original purchase price of $ 4,000 was
subsequently renegotiated and the agreement was amended to reduce
the purchase price and sellers credit by $ 1,000 - Note 6) was
sold on December 24, 1999, at a loss of $ 574 (Note 9).

The vessel Evan which was acquired on April 6, 1999 for $ 703
was sold on November 2, 2000, at a gain of $ 289 (Note 9).

No depreciation was charged for vessels Lucky Lady, Evan and
Holy Island as their acquisition cost approximates their
estimated salvage value.

Cost of vessels at December 31, 1999 and 2000 includes $ 161
of amounts capitalized in accordance with the accounting policy
discussed in Note 2(e) above. There is no capitalized interest.

Depreciation for 1998, 1999 and 2000 totalled $ 1,310, $ 558
and $ 787, respectively, and is included in depreciation and
amortization in the accompanying consolidated statements of
income (loss).

F-17

4. DEFERRED CHARGES:

The unamortized amounts included in the accompanying
consolidated balance sheets are analyzed as follows:

Drydocking and Financing
Special Survey Costs Total
-------------- --------- -----
Balance, December 31, 1998 - - -
- Additions 334 25 359
- Amortization for the year (66) (18) (84)
Balance, December 31, 1999 268 7 275
- Additions 1,773 1,305 3,078
- Amortization for the year (145) (1,088) (1,233)
------ ------- -------
Balance, December 31, 2000 1,896 224 2,120
====== ======= =======

The amortization of financing costs relating to the bank
loans discussed in Note 6 below is included in interest and
finance costs, net in the statement of income (loss).

The estimated dates for the next special survey and dry-
docking of the vessels is as follows:

Vessel Special Survey Dry-docking

Alex Stream August 2001 August 2001
Holy Island May 2004 April 2002
Petalis June 2005 June 2003
Fighting Lady December 2002 December 2002
Lucky Lady July 2005 June 2003
Almar I March 2004 April 2003

5. INVESTMENTS:

From April 25, 2000 up to May 23, 2000, the Company, through
its wholly owned subsidiary American Investors Co.
(established under the laws of Liberia on March 2, 2000),
acquired the 24.99% (454,800 shares) of the issued shares of
A/S Dampskibsselskabet Torm ("Torm") for a total
consideration of $ 23,461 (Danish Kroner 405.13, in average,
per share) through the Stock Exchange. Torm is listed in the
Copenhagen Stock Exchange. The consideration paid was
financed through a mortgaged bank loan concluded on April 24,
2000 (Note 6), that was fully repaid in November 2000. The
Company's president is also one of the seven members of the
Board of Directors of Torm. At December 31, 2000, the quoted
market price for Torm shares was Danish Kroner 573.20 per
share.

F-18

A summary of the Torm's audited consolidated balance sheet
and statement of income (loss) translated to USD at December
31, 1999 and 2000 and for the years then ended, is set forth
below (in thousand of US Dollars). The exchange rates used
to convert the financial statements from Danish Kroner to US
Dollars were 7.3973 and 7.91 for 1999 and 2000 respectively.

Balance Sheet 1999 2000
------------- ----- -----
Fixed Assets:
Intangible assets 1,883 991
Vessels net book 297,784 220,478
Vessels under construction 21,619 20,603
Land, buildings and other
equipment 2,115 2,191
Long-term financial assets 2,506 3,555
------ ------
Total fixed assets 325,907 247,818
Current Assets:
Stocks and debtors 65,318 71,058
Securities - bonds 69,743 61,643
Cash and cash equivalents 11,951 30,193
Total current assets 147,012 162,894
Total Assets 472,920 410,711
Capital and Reserves:
Called-up share capital 24,604 23,009
Revaluation reserves 1,772 3,514
Profit and Loss Account 98,417 121,403
------ -------
Total capital and reserves 124,793 147,926
Deferred taxation 9,492 15,620
Other provisions 15,900 7,720
------ ------
Total provisions 25,392 23,339
Long-term debt 231,406 153,658

Current Liabilities:
Current portion of
long-term debt 33,436 24,317
Trade creditors and other
liabilities 57,892 56,870
Dividends for the financial year - 4,602
Total current liabilities 91,329 85,788
Total liabilities, capital
and reserves 472,920 410,711
======== ========

F-19

Statement of Income 1999 2000
------------------- ----- -----
Net turnover 194,202 273,362
Operating costs (176,725) (206,949)
--------- ---------
Net earnings from shipping
activities 17,476 66,414
Profit on sale of
vessels/interests - 19,418
Administrative expenses (9,481) (10,672)
Other operating income 4,044 5,728
Depreciation (19,043) (20,387)
Financial items (11,804) (18,129)
Tax on profit on ordinary
activities 3,774 (6,779)
------- -------
Profit (loss) for the year (15,035) 35,592
======== =======

6. LONG - TERM DEBT:

Bank Loans:

(a) In March, 1999, the Company obtained a loan of $ 6,000 to
partly finance the acquisition cost of two vessels. The loan
interest was based on LIBOR plus a spread. Of the balance
outstanding at December 31, 1999 ($ 5,450), $ 2,300 was paid
in February 2000 from the sale proceeds of one vessel (Note
9) while the remaining amount was paid in full in October,
2000 (see loan under (c) below) . The interest rate at
December 31, 1999, was 8.00%. The average interest rate
during 1999 2000 was 6.72% and 8.16%, respectively.

(b) In April, 2000, the Company obtained a loan of $ 23,496 to
finance the acquisition of the investment in Torm (Note 5).
The loan interest is based on LIBOR plus a spread. The loan
was repaid in full on November 22, 2000. The average
interest rate during 2000 was 8.09%.

(c) In October, 2000, the Company obtained a loan of $ 2,600 to
repay part of the loan mentioned in (a) above. The loan
interest is based on LIBOR plus a spread. The loan is
repayable in ten consecutive quarterly installments (eight
installments of $ 250 each, followed by two installments of $
300 each) form January 2001 through April 2003. The interest
rate at December 31, 2000 and the average interest rate for
the period from October to December 31, 2000 was 8.27%.

(d) In November, 2000, the Company obtained a loan of $ 12,410
for working capital purposes. The loan interest is based on

F-20

LIBOR plus a spread. The loan is repayable in sixteen
consecutive quarterly installments (eight installments of $
564 each, followed by eight installments of $ 376 each) from
February 2001 through November 2004 and a balloon payment of
$ 4,890, payable together with the last installment. The
interest rate, at December 31, 2000 and the average interest
rate for the period from November through to December 31,
2000 was 8.75%.

The loans outstanding at December 31, 2000, are secured as
follows:

-- First priority mortgage over the Company's vessels.
-- Assignments of earnings and insurances of the mortgaged
vessels;
-- Corporate guarantee.

The loan agreements among others include covenants requiring
the borrowers to obtain the lenders' prior consent in order
to incur or issue any financial indebtedness, additional
borrowings, pay dividends, pay shareholders' loans, sell
vessels and assets and change the beneficial ownership or
management. Also, they require the borrowers to maintain a
minimum hull value in connection with the vessels'
outstanding loans, insurance coverage of the vessels against
all risks and maintenance of operating bank accounts with
minimum balance.

Other Loans: On April 5, 2000, the Company obtained a loan of
$ 14,000 from a corporation for general investment purposes,
originally payable in one installment on May 2001. On May 5,
2000 the Company repaid $ 6,750, while the balance
outstanding at December 31, 2000 ($ 7,250) was fully repaid
on January 23, 2001. As per the loan agreement the interest
accrued for the first month at a rate of 7.50% and at 10%
thereafter.

Sellers Credit: Further to the bank loans discussed above the
acquisition cost of the two vessels in 1999 was also financed
through a sellers credit of $ 2,000 (originally $3,000), of
which $ 1,500 relate to Alex Stream and $ 500 (originally $
1,500) to Santa Maria. The amount for Alex Stream was repaid
in full on December 14, 2000 and the amount relating to Santa
Maria was repaid in full on January 22, 2001.

Sellers Loan: During 1999 the company obtained an unsecured
sellers loan for the amount of $ 2,800 to partly finance the
acquisition cost of vessel Fighting Lady. The amount was
fully paid on November 8, 2000.

F-21

Bank and other loans interest expense for the years ended
December 31, 1998, 1999 and 2000 amounted to $ 817, $ 356 and
$ 2,177 respectively, and is included in interest and finance
costs, net in the accompanying consolidated statements of
income (loss).

The aggregate annual principal payments required to be made,
subsequent to December 31, 2000 are as follows:

Year Amount
----- ------
2001 11,006
2002 3,256
2003 2,103
2004 6,395
------
22,760

7. CAPITAL STOCK:

At December 31, 1998 and following the reverse stock split
occurred on May 21, 1998 and the issuance of 6,350,000 Class
A common shares, the Company's issued and outstanding common
stack consisted of 6,571,806, Class A, common shares.

On August 31, 1999 the shareholders approved amendments to
the Company's Articles of Incorporation, the result of which
was to increase the aggregate number of shares which the
Company shall have the authority to issue to 55,000,000
shares as follows:

(a) 5,000,000 will be shares of Preferred Stock with par
value $0.01 per share
(b) 49,000,000 will be Class A common shares with par value
$0.01 per share
(c) 1,000,000 will be Class B common shares with par value
$0.01 per share

During 1999, 4,924,347 Class A common shares were issued at $
1.15 per share as follows:

-- On September 10, 1999, 900,000 shares to satisfy the
consideration for the acquisition of the shares of the
holding company of Storler Shipping Company (vessel
Petalis).

-- On September 30, 1999, 434,783 shares to satisfy the
consideration for the acquisition of the shares of the
holding company of Arotra Shipping Company (vessel Holly
Island).

F-22

-- On October 1, 1999, 608,695 shares to satisfy the
consideration for the acquisition of the shares of the
holding company of Acon Shipping Company Ltd. (vessel
Evan).

-- On October 1, 1999, 2,980,869 shares to satisfy the
consideration for the acquisition of the shares of the
holding company of Madlex Shipping Company (vessel Almar
I).

Furthermore, on December 27, 1999, the Company gave in the
form of share dividend to its existing shareholders "Class B
shares" each of which entitles the shareholder to 1,000 votes
per share. One class B share is given for 100 common shares.
These shares do not have an active trading market and
therefore they do not derogate from the economic value of the
present common shares in any material respect. As a result
the Company decided not to list the 114,946 Class B shares
with par value $ 0.01 per share. The quoted market value of
the shares at December 27, 1999, was $ 2 3/8 per share.
Accordingly, the Company transferred the amount of $ 273 from
retained earnings to capital stock ($ 1) and to paid-in
capital ($ 272).

At December 31, 2000, the Company's issued and outstanding
common stock consisted 11,496,153, Class A common shares and
114,946, Class B common shares.

8. QUASI-REORGANIZATION:

The Company effectuated a "quasi-reorganization" for
accounting purposes in January 1999 by which the Company's
additional paid-in capital of U.S. $ 56.5 million was
adjusted to U.S. $ 6.26 million as of January 1, 1999 and the
Company's deficit in retained earnings of U.S. $ 50.24
million as of December 31, 1998 was adjusted to U.S. $ 0 as
of January 1, 1999. The Company effectuated this "quasi-
reorganization" for the purpose of simplifying its balance
sheet and the adjustment does not involve any actual payments
or transfer of funds.

F-23

9. GAIN (LOSS) ON SALE OF VESSELS:

The amount in the accompanying 1998, 1999 and 2000
consolidated statements of operations is analyzed as follows:

1998 1999 2000

Sale proceeds, net
Selling price 25,500 2,763 1,123
Compensation from new owners
for delays in taking
vessels' delivery 132 -
Other sale expenses (267) (383) (131)
------- ------ -------
25,365 2,380 992
------- ------ -------
Vessels' net book value at the
date of sale
Vessels' acquisition cost (38,000) (3,000) (703)
Depreciation up to the sale date 1,310 46 -
------- ------- ------
(36,690) (2,954) (703)
Unamortized financing costs,
written-off (183) - -
------- ------ ------
Net gain (loss) (11,508) (574) 289
======== ======= =======

The net sales proceeds in 1998 were used to repay the loan
received for the acquisition of the same vessels (Note 2a).
The net sales proceeds in 1999 were partly used to repay, in
February 2000, part of the loan received for the acquisition
of vessels Santa Maria and Alex Stream (Note 6).

10. INCOME TAXES:

Cyprus and Malta does not impose a tax on international
shipping income. However, the shipowning companies' vessels
are subject to registration and tonnage taxes which have been
included in vessels' operating expenses in the accompanying
1998, 1999 and 2000 consolidated statements of income (loss).
Certain revenue earned by the Company is considered as
attributable to U.S. sources. Management of the Company is of
the opinion that such revenue is exempt from U.S. taxation
under applicable provisions of the Internal Revenue Code of
the United States (the "Code"), although sections of the Code
are not clear in all respects.

Excel is not subject to corporate income taxes on its profits
in Liberia because its income is derived from non-Liberian

F-24

sources. The Company is not subject to corporate income tax
in other jurisdictions.

11. STOCK OPTION PLAN:

On October 12, 1999, the Board of Directors approved a stock
option plan (the "Plan") in order to provide an incentive
through acquisition of proprietary interest in the stock of
the company to officers, key employees and directors of the
Company, a Subsidiary or a Manager. The aggregate number of
shares to be given under the stock option plan was 136,000
and each outstanding option should become exercisable, if the
Market Price per share on December 31, 2000, subject to
adjustments as defined, was equal to or greater than twice
the option price per share ($ 1.50). At December 31, 2000
the Market Price per share was $ 2.1875 and the stock option
plan was abolished.

12. CONTINGENCIES:

Various claims, suits, and complaints, such as those
involving government regulations and product liability, arise
in the ordinary course of the shipping business. In addition
losses may arise from disputes with charterers, agents,
insurance and other claims with suppliers relating to the
activity of vessels. Currently, management is not aware of
any such contingent liabilities which should be disclosed or
for which a provision should be established.

Management accrues for the cost of environmental liabilities
when management becomes aware that a liability is probable
and is able to reasonably estimate the Company's share.
Currently, management is not aware of any such claims or
contingent liabilities which should be disclosed or for which
a provision should be established in the consolidated
financial statements.

A minimum up to $ 1 billion of the liabilities associated
with the individual vessels environmental actions, mainly for
sea pollution, are covered by the Protection and Indemnity
(P+I) Club insurance.

13. FINANCIAL INSTRUMENTS:

The principal financial assets of the Company consist of cash
on hand and at banks and accounts receivable due from
charterers. The principal financial liabilities of the
Company consist of long-term bank loans and accounts payable
due to suppliers.

F-25

(a) Interest rate risk: The Company's interest rates and
long-term loans repayment terms are described in Note 6.

(b) Credit risk: The credit risk is minimized since accounts
receivable from charterers are presented net of relevant
provision for uncollectable amounts, whenever required.

(c) Fair value: The carrying amounts reflected in the
accompanying consolidated balance sheets of financial
assets and liabilities approximate their respective fair
values due to the short maturities of these instruments.
The fair values of long-term bank loans approximate the
recorded values, generally due to their variable
interest rates.

14. SUBSEQUENT EVENTS:

On January 18, 2001 the Company obtained a bank loan of
Danish Kroner 125 million to refinance the bank loan
acquisition of the holding of 454,800 shares in A/S
Dampskibsselskabet Torm. The loan is repayable in two
installments of Danish Kroner 10 million payable on September
30, 2001 and 2002 and a balloon payment of Danish Kroner 105
million payable together with the last installment. As a
security the Company has pledged the shares in favor of the
lending bank.

On March 29, 2001 the Company acquired 250 shares of Torm for
a total consideration of DKK 146,250 (DKK 585 or
approximately $ 73 per share). As a result the Company's
shareholding in Torm, as of the above date, increased to
25.003% (455,050 shares).

On March 31, 2001 the Company acquired the shares of
Maryville Maritime Inc. ('Maryville'), a ship management
company (established under the laws of Liberia).

F-26

SIGNATURES

Pursuant to the requirements of Section 12 of the Securities
Exchange Act of 1934, the registrant certifies that it meets all
of the requirements for filing on Form 20-F and has duly caused
this annual report to be signed on its behalf by the undersigned,
thereunto duly authorised.

Excel Maritime Carriers, Ltd.

-----------------------------

Date June 29, 2001 By /s/ Gabriel Panayotides

------------ -----------------------------
Gabriel Panayotides
Chairman

02545001.AB8